San Jose, February 3, 2026, 05:36 PST
- PayPal appoints Enrique Lores as CEO starting March 1; Jamie Miller will act as interim CEO until then
- Shares dropped almost 16% in pre-market trading following a weak profit forecast for 2026 and disappointing holiday-quarter results
- The company revealed its inaugural quarterly cash dividend, set at $0.14 per share
PayPal on Tuesday chose Enrique Lores as its next CEO, following a profit forecast for 2026 that came in below expectations. The announcement knocked the stock down nearly 16% in premarket trading. The payments giant also posted holiday-quarter results that missed Wall Street estimates and revealed that growth in its higher-margin “branded checkout” button on merchant sites slowed to just 1%. This raised new concerns about competition from Apple, Google, and other rivals. (Reuters)
The timing is crucial since the December quarter typically boosts payments companies. Investors see PayPal’s branded checkout gains as a key test of its ability to hold onto core business amid cautious shoppers. The board’s decision to change CEOs during this pivotal period shows dwindling tolerance for gradual progress, even as the company juggles growth initiatives and cost control.
PayPal’s board said in a statement it had reviewed the company’s standing against rivals and found that the “pace of change and execution” over the past two years fell short of expectations. Enrique Lores, who’s been on the board for almost five years and took over as chair in July 2024, will become CEO on March 1. In the meantime, Miller will lead the company, while David W. Dorman steps in immediately as independent board chair. Lores highlighted how the payments sector is “changing faster than ever,” citing tougher competition and “the rapid acceleration of AI.” The board also thanked Alex Chriss for strides including growing Venmo and expanding BNPL—short for “buy now, pay later,” a checkout instalment option. (PR Newswire)
HP Inc. announced Bruce Broussard as its interim CEO, effective immediately, following the departure of Lores, who stepped down as president and CEO and exited the board. (Reuters)
A recent SEC filing revealed PayPal’s net revenue rose 4% to $8.7 billion in Q4, while non-GAAP earnings reached $1.23 per share. Total payment volume hit $475.1 billion. The company projects 2026 non-GAAP EPS to fall within a range from a low-single-digit decline to a slight increase compared to 2025, with first-quarter adjusted EPS expected to drop by a mid-single-digit percentage. The board declared a $0.14 quarterly cash dividend, payable March 25 to shareholders of record March 4, and signaled plans to continue quarterly dividends, pending board approval. (SEC)
The CEO transition leaves little margin for error. Should consumer spending dip further or PayPal’s branded checkout keep trailing behind big tech wallets and other smoother payment options, the company’s higher-margin segment could remain strained, even if total payment volumes stay steady.
PayPal’s issue isn’t relevance — its vast merchant and consumer network remains intact — but tempo. Investors are shifting focus from slogans to whether checkout growth steadies and guidance sheds its defensive tone.
PayPal shares ended Monday at $52.33, marking a roughly 33% drop over the last year, per Investing.com data. (Investing.com Canada)
Lores will step in on March 1, while Miller holds the position until then. Upcoming updates on checkout growth and profit trends will be key to determining if this leadership shift signals a reset or simply another pivot.
