PYPL Stock Declines Pre-Market After Q4 Earnings Miss: PayPal Appoints New CEO

• PayPal also announced that it has appointed Enrique Lores as President and CEO, effective March 1, 2026, replacing Alex Chriss.
• To ensure a seamless transition, PayPal said that its Chief Financial and Operating Officer, Jamie Miller, will serve as the interim CEO until Lores takes over next month.
• Lores served as the President and CEO of HP for more than six years.

PayPal Holdings Inc. (PYPL) shares declined more than 18% in Tuesday’s pre-market trade after the company’s fourth-quarter (Q4) results missed Wall Street expectations.

PayPal reported adjusted earnings per share (EPS) of $1.23 on revenue of $8.68 billion, while Wall Street analysts expected an adjusted EPS of $1.29 on revenue of $8.79 billion, according to Stocktwits data.

PayPal also announced that it has appointed Enrique Lores as President and CEO, effective March 1, 2026, replacing Alex Chriss. To ensure a seamless transition, PayPal said that its Chief Financial and Operating Officer, Jamie Miller, will serve as the interim CEO until Lores takes over next month.

Lores served as the President and CEO of HP for more than six years.

The company said that while it delivered “solid performance” during 2025, its “execution has not been where it needs to be, particularly in branded checkout.”

Retail sentiment on Stocktwits around PayPal trended in the ‘extremely bullish’ territory at the time of writing.

Growth Deceleration Seen In Branded Checkout Business

PayPal’s higher-margin branded checkout business experienced a growth deceleration during Q4, according to a CNBC report. The company reported a 1% increase in the holiday quarter in the online branded checkout segment, compared with a 6% rise in the same period a year ago.

The company cited international headwinds and weakness in the U.S. retail sector as two reasons for the deceleration in growth.

PayPal also stated that it expects pressure across its retail merchant portfolio, particularly among low- to middle-income consumers, according to TheFly. The company stated that it is taking near-term actions to improve the performance of the online branded checkout segment.

PayPal’s Outlook For Q1 And 2026

PayPal sees adjusted EPS of $1.33 in the first quarter of fiscal year 2026, below Wall Street estimates of an EPS of $1.38, according to Koyfin data.

For the full year 2026, PayPal expects an adjusted EPS of $5.31, below analyst estimates of $5.73.

“The payments industry is changing faster than ever, driven by new technologies, evolving regulations, an increasingly competitive landscape, and the rapid acceleration of AI that is reshaping commerce daily. PayPal sits at the center of this change,” Lores said.

PYPL stock is down 10% year-to-date and 41% over the past 12 months.

Also See: PLTR Stock Surges On An Upgrade Following Blowout Q4, Analyst Calls It 'One Of The Clearest AI Winners'

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