Payments processor Adyen lifts profit margin target (updated)

Adyen

11/11/2025 07:01

Adyen forecasts 20% annual revenue growth after 2026

Company expects profit margin above 55% by 2028

Shares jump 7% as investors welcome new targets

Company benefits from tapping into US market

Rewrites with more context on payments sector, details on forecast, share move, analyst comment, graphics in paragraphs 1,4,5,9-12

By Gianluca Lo Nostro

Nov 11 (Reuters) - Adyen ADYEN.AS, the Dutch company known for handling payment processing for eBay and Spotify, set new financial targets on Tuesday, aiming for stronger profitability and steady revenue growth.

The company is gaining ground against U.S. rivals despite most European peers struggling, helped by its strategy of expanding in North America and Asia.

Adyen now expects its earnings before interest, taxes, depreciation and amortization (EBITDA) margin to be above 55% by 2028, up from a previous goal of 50%.

Its net revenue growth target for 2026 remains unchanged in the low- to mid-twenties percent range.

Following 2026, annual revenue growth is expected to come in at around 20% "in any given year," Adyen said, adding that it will refine its outlook each February.

Shares in Adyen were up about 7% by 1417GMT, among the best performers on the pan-European STOXX 600, and on track for their biggest single daily gain since February.

EUROPEAN RIVAL TO US PAYMENTS PROVIDERS

         Payments processors are viewed as a barometer for consumer spending because their transaction volumes mirror trends in online and in-store commerce.

While European peers such as France's Worldline and Italy's Nexi have struggled with customer retention, Adyen has gained market share by expanding in regions like North America and Asia, even as global payments growth shows signs of maturing.

The firm competes with U.S. providers PayPal PYPL.O and Stripe, thanks to its payments platform and its tiered pricing model where fees decrease as transaction volumes increase, attracting large enterprises.

Even if the forecast is "largely a continuation" of next year's guidance, the move to update the revenue target each year is "a nice plus," said Thomas Couvreur, analyst at KBC Securities.

Adyen’s valuation is the highest among its peers https://www.reuters.com/graphics/ADYEN-OUTLOOK/myvmqoqkmvr/chart.png

 (Reporting by Gianluca Lo Nostro; Editing by Matt Scuffham)

 ((gianluca.lonostro@thomsonreuters.com;))