New York, Feb 3, 2026, 17:04 EST — Trading after hours.
- PayPal shares dipped in late trading following an unexpected CEO shakeup and a dimmer-than-anticipated outlook for 2026.
- The company reported weaker retail spending and a slowdown in its branded checkout segment.
- Investors are focused on the March leadership change and potential shifts in PayPal’s turnaround strategy.
Shares of PayPal dropped 20.7% to $41.70 in after-hours trading Tuesday, deepening the steep decline sparked by a leadership change and a gloomy profit forecast for 2026.
The decline is significant because PayPal is still working to revive growth in its core checkout business while safeguarding margins. A sudden CEO change, linked to execution concerns, adds fresh uncertainty just as consumers grow more cautious.
PayPal shook up its leadership, ousting CEO Alex Chriss and appointing Enrique Lores, HP Inc.’s current chief, as president and CEO starting March 1. Meanwhile, CFO Jamie Miller steps in as interim CEO, the board announced. On the post-earnings call, Miller noted, “We saw pressure across our retail merchant portfolio, particularly among lower and middle-income consumers.” The company also withdrew its 2027 targets and issued a 2026 profit forecast that missed Wall Street expectations. PayPal’s higher-margin “branded checkout” — the PayPal button on merchant sites — grew just 1% in Q4, down from 6% a year earlier, according to Reuters. (Reuters)
PayPal’s fourth-quarter revenue hit $8.676 billion, with non-GAAP earnings per share coming in at $1.23, the company said in its earnings release. Total payment volume climbed 9% to $475.1 billion, while active accounts grew to 439 million. Looking ahead, PayPal expects first-quarter 2026 GAAP and non-GAAP EPS to dip by a mid-single-digit percentage. For the full year 2026, it forecasted non-GAAP EPS to decline slightly in the low single digits, potentially edging into modest growth. The company also announced a $0.14 quarterly dividend, set for March 25, payable to shareholders of record on March 4. Miller acknowledged, “our execution has not been where it needs to be, particularly in branded checkout.” (PayPal Investor Relations)
On Wall Street, Needham analyst Mayank Tandon stuck with a Hold rating, noting he doesn’t “see a positive catalyst on the horizon,” despite PayPal’s valuation taking a hit after the recent selloff. (Investing)
PayPal has been pushing more into branded checkout, where the margins are better than in basic processing. Still, the payments field is crowded, with big tech wallets and fintech rivals edging ever closer to that checkout spot.
Yet swapping CEOs won’t resolve the core issue investors are focused on: when and how branded checkout will regain growth strong enough to support bigger spending. PayPal shares dropped to their lowest level since early 2017 in Tuesday’s selloff, plunging nearly 50% over the past year, Investopedia reported. (Investopedia)
PayPal is urging investors to take the next year one quarter at a time, pointing to weaker consumer demand and pressure on merchants. The focus is squarely on near-term execution rather than lofty promises.
The March 1 handover, when Lores steps in, is the next big event. Investors will be watching closely for early signs on strategy, staffing moves, and whether PayPal plans to sharpen its focus on checkout, divest assets, or push new merchant deals before peak shopping seasons.
