(Reuters) -PayPal ( PYPL ) beat Wall Street estimates for first-quarter earnings and stuck to its annual profit forecast on Tuesday, even at a time when U.S. President Donald Trump's tariffs have fueled economic uncertainty.

The company's results show that consumers are continuing to spend despite worries that Trump's trade war could lead to a recession.

Since CEO Alex Chriss took the helm in late 2023, PayPal ( PYPL ) has narrowed its focus and concentrated on high-margin businesses instead of aggressive growth.

"PayPal ( PYPL ) had a great start to the year and our strategy is working. This is our fifth consecutive quarter of profitable growth," Chriss said.

Excluding one-time costs, PayPal ( PYPL ) earned $1.33 per share in the first quarter, topping analysts' expectations of $1.16, according to estimates compiled by LSEG.

Revenue rose 1% to $7.79 billion, while total payment volume (TPV) climbed 4%. PayPal's ( PYPL ) operating expenses fell 4% to $6.26 billion.

The company is focusing on expense management, as PayPal ( PYPL ) seeks to fund investments through savings from deploying automation and artificial intelligence.

PayPal ( PYPL ) sees annual adjusted profit between $4.95 and $5.10 per share. The company said it was sticking to its previous guidance despite a strong start to the year because of "uncertainty in the global macro environment".

Shares of the company fell 1% before the open. They have fallen 24% this year.

BRANDED CHECKOUT IN FOCUS

Investor worries around growth in the firm's branded checkout offerings, which include PayPal ( PYPL ) and Venmo, have heavily pressured the stock.

Additionally, concerns about market share loss due to increasing competition from Big Tech rivals Apple and Alphabet's Google have created a potential overhang.

In February, PayPal ( PYPL ) unveiled plans to accelerate branded checkout growth to between 8% and 10% by 2027.

PayPal ( PYPL ) is rolling out a new checkout experience and focusing on monetizing its Venmo app to accelerate branded growth.

In the first quarter, PayPal's ( PYPL ) branded checkout TPV grew 6% excluding leap day, compared with a 5% rise a year ago.

PayPal ( PYPL ) has also forged lucrative partnerships and introduced new products, including its Fastlane guest checkout feature, to shield its dominant position.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli)