PayPal announced Enrique Lores as the new chief executive officer and president of the company with effect from March 1, 2026, taking Alex Cross's place, as per reports on Tuesday.
The company's shares fell over 16% on Nasdaq after the firm's announcement of its fourth quarter earnings and revenue failed to meet analyst expectations. The digital payments facilitator also reported slightly guidance for fiscal 2026 that was marginally higher than expected.
Lores has been a part of PayPal's Board for close to five years and served as Board Chair since July 2024. Jamie Miller, PayPal's chief financial and operating officer, will helm the role of interim CEO until Lores takes over.
The company reported adjusted financial results for the fourth quarter as earnings per share of $1.23, lagging behind the $1.29 analyst consensus. Revenue was at $8.68 billion, failing to meet the $8.79 billion projection, it did indicate a 4% increase YoY. Total payment volume went up 9% to $475.1 billion, which can also be expressed as 6% on a currency-neutral basis.
PayPal reported an earnings guidance that was slightly above expectations for Fiscal 2026, projecting an EPS of $5.75 in contrast to the consensus estimate of $5.73. However, the company projected a mid-single-digit downturn in first-quarter 2026 earnings.
"In 2025, PayPal delivered solid performance across multiple areas of the business. We grew revenue, transaction margin dollars, and earnings per share, underscoring the strength of our increasingly diversified platform," Jamie Miller, Interim CEO said. "At the same time, our execution has not been where it needs to be, particularly in branded checkout," he added.
The shares have fallen as much as 18% after Wall Street opened.
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