PayPal Stock Plummets 17% on Weak Earnings Forecast, Leadership Transition
PayPal Holdings (PYPL) shares tumbled 17% in a single trading session after the company issued a disappointing earnings forecast for 2026. The payments giant projected flat to low-single-digit percentage growth in adjusted profit, starkly below Wall Street's 8% growth expectation. Fourth-quarter results compounded the selloff, with revenue of $8.68 billion missing estimates and adjusted EPS of $1.23 falling short of analyst projections.
The weak performance defies typical seasonal patterns in digital payments, where holiday spending traditionally boosts transaction volumes. PayPal reported 6% growth in total payment volume to $475.1 billion, suggesting competitive pressures may be eroding market share.
Leadership changes accompany the financial turbulence. Enrique Lores will assume the CEO role effective March 2026, succeeding Alex Chriss. The board emphasized Lores' track record in customer-centric innovation and global execution as critical assets for PayPal's next chapter.