PayPal Holdings Inc. reported third-quarter GAAP net income of $436 million, or 36 cents per share, up from $380 million, or 31 cents per share, in the prior-year period.

On a non-GAAP basis, the company reported third-quarter net income of $694 million, or 58 cents per share, compared with $560 million, or 46 cents per share, in the third quarter of 2017.

The S&P Capital IQ consensus GAAP EPS estimate for the third quarter was 34 cents.

GAAP net revenue was $3.68 billion, compared with $3.24 billion in the year-ago quarter.

The company's total processed transactions for the three-month period were up 27% to 2.5 billion from the third quarter of 2017.

PayPal also set guidance for the fourth quarter and updated its outlook for the rest of the year.

For the fourth quarter, PayPal projects revenue to grow 13% to 15% on a foreign exchange-neutral basis to a range of approximately $4.20 billion to approximately $4.28 billion. The company expects GAAP EPS to be between 43 cents and 47 cents and non-GAAP EPS to be between 65 cents and 67 cents.

For the full year 2018, PayPal now expects revenue to grow 17% to 18% on a foreign exchange-neutral basis, to a range of $15.42 billion to $15.50 billion, up from the prior projected range of $15.30 billion to $15.50 billion. The guidance includes an expected decline of the sale of U.S. consumer credit receivables to Synchrony Financial of about 3.5 percentage points for full year 2018.

PayPal expects GAAP EPS in the range of $1.65 to $1.69, up from the previous guidance of $1.44 to $1.51. Non-GAAP EPS is expected to be in the range of $2.38 to $2.40, an increase in guidance from the previous range of $2.32 to $2.35.