By Staff Writer
Shares of PayPal slid sharply on Tuesday, more than 20%, after the company reported weaker-than-expected quarterly results and announced a leadership change at the top.
The sell-off followed PayPal’s fourth-quarter 2025 update, where the company posted adjusted earnings of $1.23 per share on net revenue of $8.68 billion, missing market expectations on both lines.
Investors also zeroed in on a slowdown in PayPal’s core branded checkout business, where growth cooled to 1% for the quarter, down from 6% a year earlier.
Management pointed to pressure in US retail spending and an increasingly competitive landscape, with digital payments becoming a crowded battlefield. Rival ecosystems from big tech players, including Apple and Google, continue to raise the bar on user experience and engagement, and that’s exactly where PayPal is trying to defend its position.
Alongside the results, PayPal said its board is replacing CEO Alex Chriss, citing that the pace of change and execution under his leadership did not meet expectations.
The board appointed Enrique Lores as president and CEO, effective March 1, 2026. Until then, Jamie Miller will serve as interim CEO.
The leadership transition arrives at a delicate moment for PayPal, as the company tries to re-accelerate growth in its most important products — especially branded checkout and its wallet, all while tightening focus on product innovation, pricing discipline, and user engagement.
Adding to investor nerves, PayPal’s early outlook suggests earnings could decline at a mid-single-digit pace in the first quarter of 2026, with full-year profit expected to be flat to slightly down.
PayPal isn’t just being judged on one quarter of numbers. It’s being judged on whether it can regain momentum in the parts of the business that matter most, and whether new leadership can move faster in the competitive digital payments landscape.
