New York, Feb 5, 2026, 14:59 EST — Regular session
Shares of PayPal Holdings dipped 3.3% to $39.67 Thursday afternoon, bouncing between $38.89 and $41.28 earlier in the session.
This week, the payments company tapped HP chief Enrique Lores as its new CEO and brought in David W. Dorman as independent board chair, citing a need to speed up execution. Dorman praised Lores as a “visionary leader,” while Lores promised to drive “greater speed and precision.” 1
PayPal warned investors that 2026 could be weaker than anticipated, with CFO Jamie Miller pointing to strain on its retail merchant base, especially among lower and middle-income shoppers. Online branded checkout growth eased to just 1% in Q4. Evercore ISI noted the unexpected leadership shake-up raises fresh doubts about the company’s turnaround strategy. 2
Brokers acted fast. Canaccord’s Joseph Vafi downgraded PayPal to Hold, noting that “the checkout with PayPal button is under pressure,” as Apple Pay and Google Pay tighten their grip on online shopping platforms that exclude PayPal. HSBC’s Saul Martinez also cut the rating to Hold, cautioning that boosting engagement “will not be easy” and “will take time.” Citizens analyst Andrew Boone added that recent results indicate PayPal “is losing share.” 3
PayPal’s board announced a $0.14-per-share cash dividend, set for payment on March 25 to shareholders of record as of March 4. The company also said it plans to pay dividends quarterly, pending board approval. In the same statement, PayPal reported repurchasing roughly $1.5 billion of stock in the fourth quarter and about $6.0 billion over the past year. It forecasted a mid-single-digit drop in first-quarter adjusted earnings per share. 4
For many investors, the crucial figure is branded checkout — the PayPal-branded button displayed by merchants during online checkout. This segment usually delivers higher margins compared to unbranded processing, making it the battleground where PayPal must hold its ground.
PayPal faces a practical challenge: it must convince merchants to keep featuring its button and shoppers to stick with it, despite phone-based wallets and platform checkouts cutting transaction times by seconds.
Much remains uncertain. Should the consumer squeeze worsen or branded checkout continue losing ground, PayPal might miss even its reduced targets. Investors could then push for more aggressive cost cuts or strategic shifts.
Investors have their eyes on the leadership timeline. According to an SEC filing, Lores will officially become CEO on March 1. Outgoing CEO Alex Chriss will step down but remain temporarily to assist with the handover. 5
