PayPal shares tumble after weak forecast, CEO shake-up
PayPal on Tuesday issued a weaker-than-expected profit outlook for 2026 and reported fourth-quarter earnings that missed Wall Street estimates, while announcing a leadership change with Enrique Lores set to become its new president and chief executive officer.
PayPal shares plunged nearly 16% in premarket trading after the company said its board had concluded that the pace of change and execution under current CEO Alex Chriss did not meet expectations, News.Az reports, citing foreign media.
Chriss had been tasked with guiding PayPal through a difficult period marked by slowing post-pandemic transaction volumes and intensifying competition in its core payments business from large technology firms and newer fintech rivals.
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The company said Chief Financial Officer Jamie Miller will serve as interim CEO until Lores formally assumes the role on March 1. Lores joins PayPal from HP, where he served as president and CEO for more than six years.
PayPal’s outlook reflects broader pressure on consumer spending, as shoppers facing high interest rates, elevated living costs and signs of a softening labor market rein in discretionary purchases and focus on essential goods—a trend also flagged by major retailers and consumer products companies.
The payments firm said it expects full-year adjusted profit to range from a low-single-digit decline to a slight increase, falling short of Wall Street expectations for roughly 8% growth, according to data compiled by LSEG.
For the holiday quarter, PayPal reported revenue of $8.68 billion, below analysts’ expectations of $8.80 billion. Total payment volume increased 6% on a foreign-exchange-neutral basis to $475.1 billion.
Adjusted profit for the three months ended December 31 came in at $1.23 per share, also missing analysts’ forecast of $1.28.
The disappointing results stood out from what is typically a strong holiday quarter for payments companies, when consumer spending on gifts, travel and seasonal promotions is usually higher.
By Nijat Babayev
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