Shares of PayPal Holdings, Inc. plunged more than 17% on Tuesday after the payments giant posted fourth-quarter earnings and revenue that fell short of market expectations, overshadowing guidance for fiscal 2026 that came in only marginally above forecasts.
The sell-off was compounded by a major leadership announcement. PayPal said Enrique Lores will take over as President and Chief Executive Officer on March 1, 2026, replacing Alex Chriss. Lores has served on PayPal’s board for nearly five years and has been Board Chair since July 2024. In the interim, Jamie Miller, the company’s Chief Financial and Operating Officer, will act as CEO until the transition is completed.
PayPal reported adjusted earnings per share of $1.23 for the fourth quarter, missing analyst expectations of $1.29. Revenue totaled $8.68 billion, below the $8.79 billion consensus estimate, although it marked a 4% year-over-year increase. Total payment volume rose 9% to $475.1 billion, or 6% when adjusted for currency effects.
Looking ahead, PayPal forecast fiscal 2026 earnings per share of $5.75, slightly above the consensus estimate of $5.73. However, the company cautioned that earnings in the first quarter of 2026 are expected to decline by a mid-single-digit percentage, dampening investor sentiment.
Miller said that PayPal delivered solid results across several areas in 2025, with growth in revenue, transaction margin dollars, and earnings per share highlighting the strength of its diversified platform. At the same time, she acknowledged execution challenges, particularly within the company’s branded checkout business.
Operational metrics were mixed. Active accounts increased 1.1% to 439 million, while payment transactions per active account over the past 12 months declined 5% to 57.7. Excluding payment service provider transactions, however, transactions per account rose 5%.
The company also announced a quarterly cash dividend of $0.14 per share.
Reacting to the results, Wolfe Research analyst Darrin Peller said the earnings miss and 2026 outlook were worse than anticipated, raising additional concerns around execution as well as competitive pressures and market share.
