PayPal Holdings, Inc. (NASDAQ: PYPL) shares tumbled more than 18% intraday after the company reported fourth-quarter earnings and revenue that missed analyst expectations, overshadowing slightly better-than-expected guidance for fiscal 2026.
The company also announced a major leadership transition, naming Enrique Lores as President and Chief Executive Officer effective March 1, 2026. Lores will succeed Alex Chriss, with Chief Financial and Operating Officer Jamie Miller serving as Interim CEO until the transition is completed.
PayPal posted adjusted earnings per share of $1.23, below the $1.29 consensus estimate. Revenue totaled $8.68 billion, missing expectations of $8.79 billion, though it rose 4% year over year. Total payment volume increased 9% to $475.1 billion, or 6% on a currency-neutral basis.
For fiscal 2026, PayPal projected earnings per share of $5.75, slightly above the consensus estimate of $5.73, but warned that first-quarter 2026 earnings would decline by a mid-single-digit percentage.
Active accounts increased 1.1% to 439 million, while transactions per active account over the trailing 12 months declined 5% to 57.7. Excluding payment service provider transactions, transactions per account increased 5%.
