PayPal Holdings, Inc. (NASDAQ: PYPL) has announced a major leadership change as the digital payments giant looks to reinvigorate growth following underwhelming financial results and mounting competitive pressures.
Effective March 1, 2026, Enrique Lores, former President and CEO of HP Inc., will take the helm as President and Chief Executive Officer. Lores succeeds Alex Chriss, who will step down after 2½ years leading PayPal.
In the interim period before Lores assumes the role, Jamie Miller, PayPal’s Chief Financial and Operating Officer, will serve as interim CEO. Additionally, David W. Dorman has been named Independent Board Chair.
Leadership Shake-Up Comes With Earnings Miss
The leadership transition comes at a challenging moment for PayPal, which reported fourth-quarter earnings and revenue that fell short of expectations. The company posted adjusted earnings per share of $1.23 on revenue of $8.68 billion, both below Wall Street estimates of roughly $1.29 and $8.79 billion, respectively.
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Despite modest year-over-year revenue growth of about 4%, investors reacted negatively to the results. On the news, PayPal’s stock tumbled between 14% and 18% in pre-market and early trading marking one of the steepest drops in years
Board Cites Pace of Change, Competitive Pressures
In a corporate statement, PayPal’s board explained that while progress had been made in various areas, the pace of execution was not aligned with its expectations. The board’s decision underscores concerns about PayPal’s ability to keep up in a rapidly evolving payments landscape dominated by competitors such as Apple Pay, Google Wallet, Stripe, and others.
Lores, a PayPal board member for nearly five years and board chair since mid-2024, brings over three decades of leadership experience in technology and commercial strategy. At HP Inc., he led major strategic transitions, expanding the business into services, subscriptions, and AI-enabled solutions experience the board hopes will help drive PayPal’s next phase of growth.
Challenges in Core Business Lines
One of the areas of concern for PayPal has been its branded checkout service, a higher-margin part of its business. Growth here slowed dramatically to just 1% year-over-year in Q4, down from approximately 6% in the same period last year.
That slowdown illustrated broader pressure in core payment products amid softer U.S. retail spending and an increasingly competitive ecosystem.
At the same time, total payment volume including transactions processed via Venmo, PayPal’s peer-to-peer service did show growth, rising around 6% to 9% depending on the measurement basis.
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Outlook and Strategy Under New Leadership
Going forward, PayPal said it will focus on strengthening innovation, accelerating execution, and enhancing customer-centric solutions under Lores’s leadership. Lores has emphasized the importance of balancing immediate performance with long-term strategic transformation as PayPal navigates digital commerce trends and technological disruptions.
The company also issued guidance for fiscal 2026 that came in modestly above expectations but signals slower profit growth than analysts anticipated, with some projections suggesting a slight decline or flat earnings in the near term.
Market & Investor Reaction
PayPal’s leadership and earnings headlines have sparked intense market reaction. The stock’s drop reflects investor concerns about the company’s ability to pivot and re-energize growth amid cost-of-living pressures, shifting consumer behaviour, and robust competition.
Analysts note that while PayPal remains a major player with a significant global footprint, execution speed and product relevance will be critical for the company to maintain and expand its market position under the new CEO.
Image Credit:Nairametrics
Source:Nairametrics
