Shares of PayPal (PYPL) are down about 20% after the financial technology (fintech) company issued a weak profit forecast for 2026 and named a new chief executive officer (CEO).
The payments giant has named Enrique Lores as its new president and CEO. Lores previously ran personal computer maker HP Inc. (HPQ).
The new CEO was announced alongside PayPal’s latest financial results and guidance.
The company announced earnings per share of $1.23 U.S., which fell short of the $1.28 U.S. forecast on Wall Street.
Revenue for the fourth quarter of 2025 totaled $8.68 billion U.S., which missed the $8.80 billion U.S. consensus estimate among analysts.
As for guidance, PayPal said that it expects its full-year 2026 profit to decline in a low-single-digit percentage compared with Wall Street forecasts of 8% growth.
With the disappointing results and outlook, PayPal announced that its board of directors had decided to part ways with current CEO Alex Chriss.
Chriss was tasked with steering PayPal through a challenging period as post-pandemic trading volumes declined and competitive pressures intensified. But the company has performed poorly.
Investors and analysts have worried that the entry of technology giants such as Apple (AAPL) and Alphabet (GOOGL) into PayPal’s core payments business could erode its market share.
PayPal said current Chief Financial Officer (CFO) Jamie Miller will serve as interim CEO until Lores assumes the top job on March 1.
Lores has served as president and CEO of HP Inc. for the past six years.
Before today (Feb. 3), PYPL stock had declined 42% over the last 12 months to trade at $52.33 U.S. per share.
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