PayPal Plunges After Earnings Miss and Weak 2026 Profit Outlook

Investors weigh rare earnings stumble against fresh leadership, buybacks, and balance-sheet reset.

Feb. 3, 2026 at 6:55pm by Ben Kaplan

Got story updates? Submit your updates here. ›

PayPal (PYPL), a digital payments platform, closed Tuesday at $41.70, down 20.31%, after reporting Q4 2025 earnings and 2026 profit guidance that missed expectations. The company also announced the sudden departure of its CEO, Alex Chriss, who will be replaced by Enrique Lores, the former CEO of HP. Trading volume reached 139 million shares, about 792% above its three-month average.

Why it matters

PayPal is a leader in the digital payments space, and this earnings miss and leadership change is a significant event for the company and the broader payments industry. Investors are closely watching how the new leadership and capital-return plans will reshape the company's growth and margins going forward.

The details

PayPal reported Q4 2025 revenue of $6.7 billion and adjusted earnings per share (EPS) of $1.23, both of which missed analysts' estimates. The company also cut its profit outlook for 2026 and withdrew its 2027 targets, triggering the stock selloff. The broader market also saw selling pressure, with the S&P 500 slipping 0.84% and the Nasdaq Composite falling 1.43%.

  • PayPal reported its Q4 2025 results prior to Tuesday's market open.
  • The company announced the sudden departure of its CEO, Alex Chriss, on Tuesday.

The players

PayPal

A digital payments platform for merchants and consumers worldwide.

Alex Chriss

The former CEO of PayPal who is departing the company.

Enrique Lores

The new CEO of PayPal, who was previously the CEO of HP and served on PayPal's Board of Directors.

Fiserv

A sector rival of PayPal, which closed at $58.12, down 7.66%, as investors reassessed payment stocks after PayPal's weak outlook.

Got photos? Submit your photos here. ›

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.