PayPal Changes CEO as Weak Outlook and Earnings Miss Trigger Sell-Off

PayPal named HP chief executive Enrique Lores as its next CEO after issuing a weak profit outlook for 2026 and reporting fourth-quarter results that missed Wall Street expectations, sending shares sharply lower.

Key facts

• New CEO: Enrique Lores, effective March 1
• Interim CEO: CFO Jamie Miller until transition
• Pre-market reaction: Shares fell 16–17%
• First dividend: $0.14 per share, payable March 25

Quarterly performance

For the quarter ended December 31, PayPal reported net revenue of $8.68 billion, up 4% year over year but below expectations. Adjusted earnings were $1.23 per share, compared with analyst forecasts of $1.28.

Total payment volume rose 6% on a currency-neutral basis to $475.1 billion. Transaction margin dollars increased 3% to $4.03 billion.

The company forecast 2026 adjusted profit to range from a low-single-digit decline to a slight increase compared with 2025. The guidance fell well short of market expectations for high-single-digit growth. PayPal also said first-quarter adjusted earnings are expected to decline by a mid-single-digit percentage.

Branded checkout slows

Growth in PayPal’s higher-margin branded checkout business decelerated to 1% in the holiday quarter, down from 6% a year earlier.

The company attributed the slowdown to weaker U.S. retail demand, international headwinds, and tougher year-over-year comparisons. The metric is closely watched as a measure of PayPal’s ability to defend its core franchise against large technology platforms and newer fintech competitors.

Board signals urgency

The board said it reviewed the company’s competitive position and concluded that the pace of change and execution over the past two years did not meet expectations.

The decision to appoint a new CEO during a critical earnings period reflects increasing pressure to stabilize growth while maintaining cost discipline.

Capital returns

PayPal announced its first quarterly cash dividend of $0.14 per share and said it intends to continue paying dividends subject to board approval. The company repurchased $1.5 billion of stock in the fourth quarter and $6.0 billion over the past 12 months.

The leadership transition leaves little room for execution errors. Investors will focus on whether PayPal can reaccelerate branded checkout growth and deliver guidance that signals improving momentum rather than defensive positioning.

The next several quarters will determine whether the CEO change marks a reset — or another adjustment in a prolonged turnaround.