Revenue increased 18% year-over-year to $2.67 billion, beating analysts' estimated $2.65 billion.
PayPal posted in-line earnings of 35 cents per diluted share.
In 2015, the San Jose, CA-based payment platform earned 31 cents per diluted share on revenue of $2.26 billion for the same quarter.
PayPal said it expects 2016 fourth-quarter earnings to be in the range of 40 cents to 42 cents per diluted share with revenue between $2.92 billion to $2.99 billion.
Analysts surveyed by FactSet are expecting adjusted earnings of 42 cents per share and $2.97 billion in revenue.
For the full year, PayPal sees earnings in the range of $1.48 to $1.50 per diluted share and revenue between $10.78 billion to $10.85 billion.
Wall Street is looking for adjusted earnings of $1.50 per share on revenue of $10.82 billion.
Additionally, PayPal said active customers accounts rose 11% year-over-year to $192 million in the third quarter.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
The team rates PayPal as a Hold with a ratings score of C-. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, the team finds that the company's profit margins have been poor overall.
You can view the full analysis from the report here: PYPL