New York, Feb 4, 2026, 13:33 EST — Regular session
PayPal shares dropped roughly 3% to $40.40 in midday trading Wednesday, deepening a steep selloff after the company warned of weaker profit forecasts and announced a CEO transition.
This move is significant as PayPal’s board has abruptly reset a turnaround plan that was already under investor scrutiny, and they did so smack in the middle of earnings season. The company now expects 2026 adjusted profit — excluding certain one-offs — to decline slightly in the low single digits or edge up marginally, falling well short of forecasts after missing holiday-quarter estimates.
This also signals a direct hit to consumer spending and demand at online checkouts. PayPal’s higher-margin “branded checkout” segment — where shoppers click its own PayPal button at payment — saw a steep slowdown. The company flagged weaker retail merchant volumes and fiercer competition from other digital wallets and fintech players. Financial Times
PayPal named Enrique Lores, currently at HP, as its new president and CEO starting March 1. Jamie Miller, the company’s finance chief, will step in as interim CEO. The company criticized its recent pace, saying, “The pace of change and execution was not in line with the Board’s expectations.” Lores vowed to deliver “greater speed and precision” going forward. PayPal Newsroom
Analysts see the leadership change more as added uncertainty than a straightforward solution. Evercore ISI’s Adam Frisch pointed to “the big question” being whether the incoming CEO will assemble a new payments team to drive a multi-year turnaround or begin exploring strategic options for segments of the business. Bloomberg.com
Wall Street reacted fast on ratings and price targets. HSBC downgraded PayPal from “Buy” to “Hold” and trimmed its target price. RBC kept its “Outperform” rating but also lowered its target, according to broker notes. TipRanks
A securities filing spelled out the details of the leadership change. PayPal revealed Lores will get a $1.45 million base salary plus equity awards, while Miller is set to receive a $3 million cash retention bonus. The filing also noted that outgoing CEO Alex Chriss will stay on as an employee, but in a non-officer capacity, until March 2 to assist with the transition.
The broader market offered little refuge for growth-linked names. The S&P 500 and Nasdaq slipped Wednesday as investors remained cautious on software and cloud stocks, even as the Dow managed a modest gain.
PayPal’s next move remains uncertain. Bringing in a new CEO might buy the company some breathing room, but it could also trigger yet another strategic overhaul. If the momentum behind branded checkout stalls, investors will probably brace for more cuts, not fewer.
Traders are now focused on the March 1 handover, looking for early signals that management might reinstate long-term targets after pulling back from previous multi-year goals.
