PayPal (PYPL)
Shares rose about 1% after earnings, a move that surprised given weak past performance. On a year-over-year basis the stock had been under pressure, with worries hanging over the company.
Results: adjusted earnings per share of $1.45. Revenue missed at $8.58 billion against the $8.71 billion expected. Total payment volume, the value of transactions processed, rose 7% on a currency-neutral basis.
PYPL raised its full-year adjusted earnings forecast to $5.60 per share, up from $5.38 and above Wall Street's estimate.
The CEO is running a multi-year turnaround focused on cost cutting and AI integration. AI is a key concern across fintech - some companies may be hurt by its growth. The CEO says the company is making progress but has more work ahead, aiming for durable, profitable growth. The earnings beat is an encouraging sign; the revenue miss marks the remaining challenge.
Royal Caribbean (RCL)
Shares rallied more than 9%, a needed win. The company beat on both top and bottom lines. Adjusted earnings per share came in at $6.57 versus $6.38 expected - a clean beat. Revenue was slightly short at $5.59 billion, not enough to worry investors.
RCL raised its 2026 adjusted earnings forecast to $17.85-$17.95 per share, above Wall Street expectations even at the low end.
Crude oil prices have weighed on the stock this year; coming into today it was little changed year to date. Fuel is a major cost, as it is for airlines, and fuel prices have been a drag on cruise lines and airlines alike. Travel demand for cruising is holding up despite worries over gasoline prices - people keep spending on trips. CEO Jason Liberty says 2027 bookings are pacing ahead of historical levels, a strong positive sign.
RCL was the number one performer in the S&P 500 at the time. It lifted Norwegian Cruise Line (NCLH) too; both ranked in the top 10 S&P 500 performers. Norwegian had received a JP Morgan (JPM) downgrade the prior day.
SoFi (SOFI)
Shares rallied nearly 10%, a big needed win after SoFi lifted its outlook on quarterly results.
Adjusted earnings per share came in at 18 cents, a penny above the 17 cents expected, and a record high. Revenue beat at $1.37 billion versus just over $1.25 billion expected, rising 43%. Net income jumped more than 70%.
SOFI raised its full-year adjusted revenue forecast to $5 billion, up from a prior $4.75-$4.85 billion range. It also raised annual earnings guidance by a penny to 61 cents per share.
The CEO says results came despite a tougher interest rate backdrop, which had been expected at the start of the year. The lending engine is driving growth: lending revenue came in well above the $711 million analysts expected. Personal loan originations rose 69%. Student loan originations nearly doubled. Lending made up 59% of adjusted net revenue, up from a year earlier.
Coming into today, SOFI was down more than 40% year to date and more than 50% year over year.
