PayPal’s Q4 Earnings Miss Estimates Amid Leadership Shakeup
PayPal's fourth-quarter revenue of $8.68 billion fell short of Wall Street's $8.80 billion expectation, with adjusted earnings per share also missing at $1.23 versus the projected $1.28. The company simultaneously announced the ousting of CEO Alex Chriss, whose tenure since 2023 failed to accelerate growth or counter mounting competition.
Financial metrics revealed mixed performance: a 4% revenue increase to $8.68 billion (3% currency-neutral), with GAAP operating income rising 5% to $1.5 billion. Transaction margins grew modestly by 3% to $4.03 billion, while GAAP EPS surged 38% year-over-year to $1.53.
HP's Enrique Lores will assume leadership on March 1, inheriting challenges including margin pressures and intensifying rivalry from both established tech firms and fintech disruptors. The board cited execution speed as the decisive factor in their leadership change.
