PayPal raised its full-year adjusted profit forecast on Tuesday, as the payments giant benefited from robust consumer spending, while measures to cut costs improved operating margins in the first quarter.
Consumer spending has shown remarkable resilience even as economic worries clouded the outlook for the payments sector for months.
The company expects 2024 adjusted profit to increase by "mid-to-high single-digit percentage", compared with its earlier forecast of it remaining flat.
PayPal's operating margins improved 84 basis points, on an adjusted basis, to 18.2% in the first quarter.
The company's low-margin business products have risen strongly, while growth in its branded products slowed due to increased pressure from competitors such as Apple .
Persons:
Alex Chriss
Organizations:
PayPal, Nasdaq, FX, Apple
Locations:
San Jose , California