PayPal Holdings, Inc. (NASDAQ:PYPL) shares plunged more than 16% in premarket trading on Tuesday after the payments group posted fourth-quarter earnings and revenue below market expectations, overshadowing slightly better-than-expected guidance for fiscal 2026.
Alongside the results, PayPal announced a major leadership transition. Enrique Lores has been appointed President and Chief Executive Officer, effective March 1, 2026, succeeding Alex Chriss. Lores has been a member of PayPal’s board for nearly five years and has served as chair since July 2024. In the interim, Chief Financial and Operating Officer Jamie Miller will take on the role of Interim CEO until Lores formally assumes leadership.
For the fourth quarter, PayPal reported adjusted earnings of $1.23 per share, missing the analyst consensus of $1.29. Revenue totaled $8.68 billion, also below expectations of $8.79 billion, although it marked a 4% increase from the same period last year. Total payment volume rose 9% year over year to $475.1 billion, or 6% on a currency-neutral basis.
Looking ahead, PayPal forecast fiscal 2026 earnings per share of $5.75, slightly above the consensus estimate of $5.73. However, the company cautioned that earnings in the first quarter of 2026 are expected to decline at a mid-single-digit rate.
“In 2025, PayPal delivered solid performance across multiple areas of the business. We grew revenue, transaction margin dollars, and earnings per share, underscoring the strength of our increasingly diversified platform,” said Jamie Miller, Interim CEO. “At the same time, our execution has not been where it needs to be, particularly in branded checkout.”
Operational metrics were mixed. Active accounts increased 1.1% to 439 million, while payment transactions per active account over the trailing 12 months declined 5% to 57.7. Excluding payment service provider transactions, this measure rose 5%.
PayPal’s board also declared a quarterly cash dividend of $0.14 per share.