PayPal missed Wall Street estimates for first-quarter revenue on Tuesday, overshadowing the payments giant's profit beat and sending its shares down 3.2% before the bell. The company's results highlight the challenge of navigating growth expectations as PayPal undergoes an ambitious turnaround under CEO Alex Chriss' leadership.

For the second quarter, PayPal issued better-than-expected guidance, forecasting adjusted earnings per share of $1.29 to $1.31, above the average analyst estimate of $1.21. Transaction margin dollars will increase 4% to 5% to between $3.75 billion and $3.8 billion, the company said.