PayPal Stock Jumps -- Unveils First-Ever Dividend and Strikes Major AI Deal with OpenAI

PayPal PYPL surged about 10% on Tuesday after the fintech giant rolled out a trio of market-moving updates: its first dividend in company history, a lifted full-year outlook, and a new integration that will bring PayPal's checkout experience directly into OpenAI's ChatGPT.

The company confirmed it will connect its global merchant network to ChatGPT using the Agentic Commerce Protocol, enabling chat-to-checkout shopping where AI agents can help users research products, compare prices, and pay, all within ChatGPT.

Alongside the AI partnership, PayPal boosted its full-year adjusted EPS forecast to $5.35$5.39, up from $5.15$5.30 previously. Its board also approved a $0.14 quarterly dividend, targeting roughly a 10% payout ratio on adjusted earnings, a milestone for the 27-year-old company.

PayPal reported solid operating momentum, with total payment volume rising about 7% to roughly $458.1 billion.