PayPal and Visa released their latest earnings reports after closing bell tonight. PayPal posted adjusted earnings of 36 cents per share, representing an 11% year over year increase on $2.65 billion in revenue, compared to the consensus estimates of 36 cents per share in earnings and $2.6 billion in revenue, representing a 15% year over year increase or 19% on a currency-neutral basis.

Visa posted earnings of 69 cents per share on $3.6 billion in revenue for its third fiscal quarter, against the consensus estimates of 67 cents per share and $3.64 billion in revenue. In last year’s third fiscal quarter, the payments processor posted earnings of 74 cents per share on $3.52 billion in revenue.

The two companies also announced a new partnership tonight.

PayPal

PayPal rises after earnings

PayPal’s GAAP earnings increased 7% to 27 cents per share. The number of active customer accounts grew 11% to 188 million. The company processed 1.4 billion transactions during the quarter, representing a 25% increase. PayPal said there were 29 payment transactions per active account, on average, on a trailing 12-month basis, which is a 13% increase. Total payment volume increased 28% on a spot basis to $86 billion.

PayPal expects third quarter earnings to be between 33 cents and 35 cents per share, against the consensus of 35 cents. For the full year, the company expects earnings to be between $1.47 and $1.50 per share, compared to the consensus of $1.49 per share. PayPal raised its full-year revenue outlook to between $10.75 billion and $10.85 billion, compared to Wall Street’s estimate of $10.7 billion. It expects full-year GAAP earnings to be between $1.11 and $1.14 per share.

Shares of PayPal jumped by as much as 2.42% to $41.10 in after-hours trades.

Visa logo

Visa authorizes more share buybacks

Visa’s GAAP earnings were 17 cents per share, including expenses related to the Visa Europe acquisition. Payments volume growth amounted to 12% year over year on a constant dollar basis, bringing it to $1.3 trillion. Cross-border volume grew 5% on a constant dollar basis, while total processed transactions grew 10% to 19.8 billion. Service revenues grew 6% from last year to $1.6 billion.

“Looking ahead, we expect next quarter results to improve modestly, similar to first-half of the year results,” said Visa CEO Charlie Scharf in a statement. “As we look toward fiscal full-year 2017, our underlying business is strong, and with the lapping effect of several items, based on what we know today and assuming similar consumer spending patterns, we feel good about our ability to produce stronger revenue and earnings growth.”

Visa repurchased $5.5 billion worth of shares, and its board authorized another $5 billion worth of share repurchases. Shares of Visa declined 0.29% to $78.56 in after-hours trades.