10:36 AM EDT, 10/28/2025 (MT Newswires) -- PayPal ( PYPL ) lifted its full-year earnings outlook on Tuesday, while the payments processor announced a partnership with Microsoft ( MSFT )-backed OpenAI to integrate its payment system within ChatGPT.

Adjusted earnings are now set to come in between $5.35 and $5.39 per share for 2025, up from its previous guidance of $5.15 to $5.30. The current consensus on FactSet is for non-GAAP EPS of $5.25.

Transaction margin dollars are pegged at $15.45 billion to $15.55 billion for the year, higher than the prior forecast of $15.35 billion to $15.5 billion, according to an earnings presentation. Transaction margin dollars is total revenue less transaction expense and transaction and credit losses.

"We have returned the company to growth and are on pace for 6% to 7% transaction margin dollar growth in 2025 when excluding interest on customer balances," Chief Executive Alex Chriss said in an earnings release.

Separately, PayPal ( PYPL ) said it will adopt the Agentic Commerce Protocol, or ACP, to expand payments and commerce in OpenAI's generative artificial intelligence chatbot, ChatGPT. The ACP enables conversation between buyers, their AI agents and businesses to complete a purchase, according to information posted on OpenAI's website.

The collaboration will allow ChatGPT users to check out instantly using PayPal ( PYPL ), which will connect its global merchant network to Open AI, PayPal ( PYPL ) said.

PayPal's ( PYPL ) shares jumped nearly 12% in Tuesday trade, but is down 8.1% so far this year.

For the September quarter, the payments firm posted adjusted EPS of $1.34, up from $1.20 the year before, which was the Street's view. Revenue advanced 7% to $8.42 billion, surpassing the average analyst estimate on FactSet of $8.24 billion.

Payment volume improved 8% year-over-year to $458.09 billion, while active accounts increased 1% to 438 million. Payment transactions declined 5%. Transaction revenue rose 6% to $7.52 billion, while transaction margin dollars gained 6% to $3.87 billion.

PayPal ( PYPL ) expects adjusted EPS to be in a range of $1.27 to $1.31 for the current quarter, while the Street is looking for $1.31. The company projects mid-single-digit revenue growth on a currency-neutral basis, Chief Financial Officer Jamie Miller said during an earnings call, according to a FactSet transcript.

"We have seen strong credit outperformance over the past year, driven by good execution from the team as well as a more benign loss environment," Miller told analysts. "We expect to see year over year comparisons start to normalize more in the fourth quarter."

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