Core Viewpoint - PayPal has replaced its CEO Alex Chriss amid slowing growth and increased competition, leading to a significant drop in its stock price by 19% following a disappointing profit forecast for 2026 [1][4]. Company Changes - Enrique Lores, previously the president and CEO of HP, has been appointed as the new president and CEO of PayPal, with Jamie Miller serving as interim CEO until Lores officially takes over on March 1 [2][1]. - The board expressed that the pace of change and execution under Chriss did not meet their expectations [1]. Financial Outlook - PayPal's adjusted profit forecast for the full year is expected to range from a low-single-digit percentage decline to a slight increase, contrasting with Wall Street's expectation of approximately 8% growth [4]. - The company has decided to provide forecasts on a yearly basis rather than committing to a long-term outlook, indicating a shift in strategy [4]. Market Conditions - The company is facing challenges due to weakening retail spending as consumers, affected by high interest rates and living costs, are prioritizing essential purchases over discretionary spending [5]. - PayPal's revenue for the holiday quarter was reported at $8.68 billion, falling short of analysts' expectations of $8.80 billion [6]. - The adjusted profit for the same period was $1.23 per share, also below the anticipated $1.28 [7]. Strategic Considerations - Analysts have raised concerns regarding the company's turnaround strategy following the unexpected CEO change, questioning whether Lores will build a strong payments team or consider strategic asset reviews [3].

Core Viewpoint - PayPal's profit forecast for 2026 is considered lackluster, and the company reported fourth-quarter earnings that fell below Wall Street expectations, influenced by weaker U.S. retail spending and slower growth in its business [1] Financial Performance - The fourth-quarter earnings reported by PayPal were below Wall Street expectations, indicating potential challenges in meeting future financial targets [1] - The company is facing pressure from a decline in U.S. retail spending, which may impact its revenue growth [1] Growth Outlook - The profit forecast for 2026 is viewed as disappointing, suggesting that the company may struggle to achieve significant growth in the coming years [1] - Slower growth in PayPal's business is a concern, reflecting broader economic trends that could affect its performance [1]

Core Viewpoint - PayPal Holdings Inc. has appointed Enrique Lores as President and CEO, effective March 1, 2026, succeeding Alex Chriss, to lead the company through its next phase of transformation in a rapidly changing payments industry [1][2]. Group 1: Leadership Transition - Enrique Lores has been on the PayPal Board for nearly five years and served as Board Chair since July 2024 [1]. - Jamie Miller will serve as Interim CEO until Lores officially takes over [1]. - David W. Dorman has been appointed as Independent Board Chair immediately [1]. Group 2: Board Evaluation and Expectations - The Board conducted a detailed evaluation of the company's position relative to competition and the industry landscape, noting that the pace of change was not meeting expectations [2]. - The Board believes Lores' extensive experience in technology and commercial sectors will provide the necessary leadership for PayPal's future [2]. Group 3: Lores' Background and Vision - Lores previously served as President and CEO of HP Inc., where he led significant strategic transitions and innovations, including expanding into AI-enabled offerings [3]. - Lores aims to strengthen PayPal's culture of innovation while ensuring timely execution and accountability for consistent quarterly performance [4]. Group 4: Industry Context - The payments industry is evolving rapidly due to new technologies, regulations, and competitive pressures, with AI reshaping commerce [4]. - PayPal's long-term success is believed to be rooted in its global scale, data, and strong relationships with consumers, merchants, and partners [4]. Group 5: Acknowledgment of Previous Leadership - The Board expressed gratitude to Alex Chriss for his contributions, including monetizing Venmo and growing the BNPL business [5]. - Chriss emphasized the importance of transitioning to a seasoned leader for the company's next phase [6].

Core Insights - PayPal Holdings, Inc. (NASDAQ:PYPL) is currently among the stocks with the lowest forward PE ratios, with a 19% drop in share price since the third-quarter 2025 earnings report [1] - The company anticipates a decrease in growth for fiscal year 2026, with operational expenses expected to rise at the same rate as trade margin dollars, which are projected to increase by 4% in FY26, down from 6% in FY25 [3] - Adjusted EPS growth is expected to be 8% in FY26, a decline from 15% in FY25 [3] Investment Outlook - BTIG has reaffirmed a Neutral rating on PayPal, noting that while investments in buy-now-pay-later services and agentic commerce are appropriate, a noticeable return on investment is not expected until at least FY27 [4] - The company operates a technology platform for digital payments globally, offering services under various brands including PayPal, Credit, Braintree, Venmo, Xoom, and Zettle [5]

This story was originally published on Payments Dive. To receive daily news and insights, subscribe to our free daily Payments Dive newsletter. Companies like Stripe and Affirm Holdings, which have applied for federal and state banking charters in recent months, are looking for greater control and greater flexibility, in addition to cost savings, according to analysts and consultants who follow the payments industry.  Other companies pursuing state and federal charters include PayPal, Revolut, Fiserv and ...

PayPal Holdings, Inc. (NASDAQ:PYPL) will release earnings for its fourth quarter before the opening bell on Tuesday, Feb. 3.Analysts expect the San Jose, California-based company to report quarterly earnings of $1.29 per share. That's up from $1.19 per share in the year-ago period. The consensus estimate for PayPal's quarterly revenue is $8.78 billion (it reported $8.37 billion last year), according to Benzinga Pro.The company has beaten analyst estimates for revenue in eight of the last 10 quarters, includ ...

Core Viewpoint - PayPal Holdings, Inc. is set to release its fourth-quarter earnings on February 3, with expectations of increased earnings per share and revenue compared to the previous year [1]. Financial Performance - Analysts predict PayPal will report quarterly earnings of $1.29 per share, an increase from $1.19 per share in the same quarter last year [1]. - The consensus estimate for PayPal's quarterly revenue is $8.78 billion, up from $8.37 billion reported in the previous year [1]. Analyst Expectations - PayPal has exceeded analyst revenue estimates in eight of the last ten quarters, including the last two consecutive quarters [2]. - The company's stock closed at $52.33, reflecting a decline of 0.7% on the previous trading day [2].

US stock futures rose on Tuesday as earnings rolled in, with Palantir's (PLTR) outlook fueling faith in AI demand and precious metals jumping to continue their wild ride. Contracts on the tech-heavy Nasdaq 100 (NQ=F) moved up 0.6%, while those on the S&P 500 (ES=F) edged up 0.3%. Dow Jones Industrial Average futures (YM=F) crept into the green after the blue-chip benchmark led gains on Monday with a 500-point advance. The S&P 500 (^GSPC) is eyeing a fresh record after Palantir's (PLTR) surprisingly stro ...

Group 1 - The "Brain-Computer Interface Developers Conference" in Tianjin is a key event to watch for the day [1] - The Reserve Bank of Australia will announce its policy interest rate at 11:30 AM [1] - RBA Governor Philip Lowe will hold a monetary policy press conference at 12:30 PM [1] Group 2 - The preliminary Consumer Price Index (CPI) for January in France will be released at 3:45 PM [1] - Major U.S. companies including Merck, Pfizer, and PayPal are set to report their earnings before the market opens [1] - Richmond Fed President Barkin will discuss the U.S. economy at 9:00 PM [1] Group 3 - The Wall Street Journal's Invest Live event will feature Federal Reserve officials, timing to be determined [1] - Federal Reserve Governor Bowman is scheduled to speak at 10:40 PM [1] - After market close, AMD and other companies like Advanced Micro Devices, Chipotle Mexican Grill, Electronic Arts, and Take-Two Interactive Software will release their earnings reports [1]

Key Takeaways PYPL will report Q4 results on Feb. 3, with consensus calling for revenue and EPS growth Y/Y.PYPL's Q4 performance is expected to benefit from higher TPV and expanding merchant usage.Competitive pressure, FX exposure and softer branded checkout business may weigh on PayPal's growth.PayPal (PYPL) is set to report its fourth-quarter 2025 results on Feb. 3, before the opening bell.PayPal expected currency-neutral revenue growth in the mid-single digits for the to-be-reported quarter. Non-GAAP ear ...