PayPal stock (PYPL) crashes 17% after weak Q4 earnings - Enrique Lores to replace Alex Chriss as CEO

PayPal stock (PYPL) today: PayPal shares fell sharply on Tuesday, tumbling more than 17% in premarket trading after the payments company reported fourth-quarter earnings that missed Wall Street expectations and issued a lackluster profit forecast for 2026.

PayPal Stock (PYPL) Today Tumbles After Weak Earnings and Enrique Lores to Take Over as CEO as Alex Chriss Steps Down

Investors also reacted to the announcement that Enrique Lores, formerly HP’s president and CEO, will take over as PayPal’s new CEO on March 1, replacing Alex Chriss, as per a report. Until then, Chief Financial Officer Jamie Miller will serve as interim CEO. The company’s board said that the pace of change and execution under Chriss did not meet its expectations, as per a Reuters report.

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PayPal Earnings Miss Wall Street Expectations

The results highlight the challenges facing PayPal as it navigates a more competitive and slower-growing payments landscape. Chriss had been tasked with guiding the company through a post-pandemic environment where trading volumes have cooled and new fintech rivals, as well as large technology companies, have increased pressure on its core business.

PYPL Reports $8.68 Billion Revenue in Holiday Quarter

PayPal reported revenue of $8.68 billion for the holiday quarter, falling short of the $8.80 billion analysts expected. Adjusted profit came in at $1.23 per share, below estimates of $1.28. Total payment volumes rose 6% on a foreign-exchange-neutral basis to $475.1 billion, but the gains were not enough to ease concerns about growth and profitability, as per the Reuters report.

The fourth-quarter results were weaker than typical for payments companies, which usually see higher consumer spending on gifts, travel, and seasonal promotions. PayPal noted that retail spending has softened as households navigate elevated interest rates, high living costs, and a labor market showing signs of cooling, leading consumers to cut back on discretionary purchases.

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Branded Checkout Growth Slows, Pressuring PayPal Stock

Investors were especially focused on PayPal’s branded checkout business, a higher-margin segment that has been a key focus for Chriss. Growth in online branded checkout slowed to 1% in the fourth quarter, down from 6% a year earlier, driven by weakness in US retail, international headwinds, and tougher comparisons.

Big Tech Competition Raises Concerns for PYPL

The slowdown in branded checkout comes amid ongoing investor concerns about the impact of Big Tech companies such as Apple and Google entering PayPal’s core payments market. While PayPal says its core products continue to perform well despite rising competition, the company’s stock has been under pressure in recent years, and investors are watching closely for signs of recovery in this key segment.

FAQs

Why did PayPal stock fall sharply today?
Shares dropped nearly 17% after fourth-quarter earnings missed expectations and the company issued a weak 2026 profit forecast.

Why did Alex Chriss step down as CEO?
The PayPal board said the pace of change and execution under Chriss did not meet its expectations.