PayPal reports strong Q2 results, beats analyst estimates, raises full-year guidance. Stock drops 8% YTD, grapples with competition and market conditions.

Holdings, Inc. reported second-quarter earnings that exceeded analyst expectations, but shares fell 4% as investors appeared to focus on slowing transaction growth metrics.

PayPal on Tuesday posted softness in quarterly branded volume growth, while broader concerns that sweeping tariffs could dent e-commerce spending later this year overshadowed its profit forecast hike and market-beating results.

PayPal Holdings (PYPL) stock dropped 4.1% in Tuesday premarket trading after the payment app company's expenses rose more than expected and its cash flow declined.

PayPal raised its outlook for the year as its active account tally climbed and its Venmo business thrived.

PayPal raised its full-year profit forecast above Wall Street estimates on Tuesday, as the digital payments giant's push to revive growth in high-margin businesses such as Venmo and U.S. checkout begins to pay off.