Shares of PayPal fell sharply Tuesday after the company reported fourth-quarter results that came in below expectations, issued a downbeat outlook, and announced a leadership transition aimed at accelerating change and improving execution.
The company posted adjusted earnings of $1.23 per share on $8.68 billion in revenue for the quarter, both below analyst expectations cited in multiple market summaries. Total payment volume rose 9% to $475.1 billion, according to performance figures published alongside the update.
Alongside results, the board replaced CEO Alex Chriss and named Enrique Lores as the next chief executive, effective March 1. HP Inc.’s CEO and a PayPal board member for several years, Lores was described as the choice to push faster delivery and sharper execution. In the interim, Jamie Miller will serve as interim CEO until the transition is completed.
Lores framed the challenge as structural to the industry’s pace of change: “The payments industry is changing faster than ever, driven by new technologies, evolving regulations, an increasingly competitive landscape, and the rapid acceleration of AI that is reshaping commerce daily,” he said. “PayPal sits at the center of this change, and I look forward to leading the team to accelerate the delivery of new innovations and to shape the future of digital payments and commerce.”
Management also acknowledged execution gaps—especially where competition is fiercest. “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,” Miller said. “At the same time, our execution has not been where it needs to be, particularly in branded checkout.”
The selloff pushed the stock toward levels not seen in years, as investors weighed whether the CEO reset signals deeper structural change or a faster operational fix. Market coverage pointed to the importance of branded checkout performance and competitive pressure across digital payments, with buyers expecting clearer proof that initiatives translate into improved conversion, merchant adoption, and more durable growth.