New York, Feb 3, 2026, 14:23 EST — Regular session
- PayPal shares tumbled roughly 19% after the company issued a 2026 profit forecast that fell short of estimates and reported holiday-quarter results that missed expectations
- The board has ousted CEO Alex Chriss, appointing CFO Jamie Miller as interim CEO. Enrique Lores is set to step in as CEO on March 1
- Investors are watching to see if PayPal can boost “branded checkout” growth as competition heats up and consumer spending cools Reuters
PayPal Holdings shares plunged in afternoon trading Tuesday following the company’s announcement of a 2026 profit forecast that’s expected to be flat or slightly lower. The payments giant also revealed a new CEO, rattling investor confidence.
The stock slid to about $42, hitting a session low near $41, positioning it for its sharpest single-day plunge in years.
The caution came alongside PayPal’s fourth-quarter results, which showed revenue of $8.68 billion and adjusted EPS of $1.23—both missing analyst forecasts, Reuters reported.
Why it matters now: PayPal is working to revive growth after the post-pandemic boom in online payments lost steam. Its higher-margin “branded checkout” segment — the recognizable PayPal button at online stores — grew just 1% this quarter, a sharp drop from 6% a year ago, the company reported. Reuters
The board decided to shake up leadership, citing a need for quicker execution. Alex Chriss is out, and CFO Jamie Miller will serve as interim CEO until Enrique Lores assumes the role of president and CEO on March 1.
PayPal pulled its 2027 outlook, citing macroeconomic challenges like weaker retail spending and a cooling labor market. The company also announced near-term measures to boost performance in its branded checkout segment.
The selloff spread through the digital-payments sector as investors scaled back expectations for a swift rebound in online checkout. PayPal is now up against mounting pressure from wallets and “pay later” services, including Apple Pay, Google Pay, Klarna, and Affirm. Reuters
Analysts highlighted mounting market-share pressure in checkout as a major worry following the guidance revision, intensifying doubts that PayPal’s efforts will deliver results anytime soon.
But the risks go both ways. Should consumer demand falter further or rivals keep siphoning off sales from PayPal’s checkout, the company may find it tough to steady margins despite efforts to tweak products and pricing. After Tuesday’s drop, expectations have little slack left for setbacks.
Investors are shifting focus to upcoming updates from management on branded-checkout trends and how quickly operational shifts are unfolding. The closest trigger remains the CEO transition to Lores set for March 1.
