PayPal craters on earnings miss, weak 2026 outlook, and leadership change
PayPal fell over 16% in premarket trading Tuesday after the digital payments company posted weaker-than-expected Q4 results and 2026 profit guidance, alongside a surprise leadership change.
For the quarter ended December 31, revenues increased 4% year on year to $8.7 billion, missing the $8.8 billion estimate, while adjusted earnings per share rose 3% to $1.23, also below the expected $1.28, per LSEG. The company forecast full-year adjusted profit for 2026 to decline in the “low-single digits” or be “slightly positive,” well below Wall Street forecasts for roughly 8% growth.
Results were dragged down by softer US retail spending and a slowdown in its online branded checkout business, which PayPal said grew “below our expectations,” rising just 1% year over year in Q4, down from 6% a year earlier.
Separately, PayPal said its CEO, Alex Chriss, will be replaced by HP CEO Enrique Lores, effective March 1. “While some progress has been made in a number of areas over the last two years, the pace of change and execution was not in line with the Board’s expectations,” the company said in a statement.
In December, PayPal announced it applied to become a US bank with the FDIC and Utah regulators to support small-business lending, adding to its existing European banking license.
Results were dragged down by softer US retail spending and a slowdown in its online branded checkout business, which PayPal said grew “below our expectations,” rising just 1% year over year in Q4, down from 6% a year earlier.
Separately, PayPal said its CEO, Alex Chriss, will be replaced by HP CEO Enrique Lores, effective March 1. “While some progress has been made in a number of areas over the last two years, the pace of change and execution was not in line with the Board’s expectations,” the company said in a statement.
In December, PayPal announced it applied to become a US bank with the FDIC and Utah regulators to support small-business lending, adding to its existing European banking license.
