PayPal changes CEO after disappointing results, stock falls 18%

Shares of PayPal Holdings Inc. (NASDAQ: PYPL) dropped over 17% on Tuesday, February 3, marking one of the stock’s worst single-day declines in years.

The fall of stock follows a dual announcement. PayPal had weaker-than-expected quarterly results, coupled with a sudden change in executive leadership.

The board announced that the company will appoint Enrique Lores, the former President and CEO of HP Inc.

Lores will take over the company from March 1, 2026.

The previous CEO, Alex Chriss, remained CEO of PayPal for nearly two and a half years. The Board stated, “the pace of change and execution was not in line with the Board’s expectations.”

David W. Dorman was appointed Independent Board Chair, effective immediately. CFO Jamie Miller will serve as interim CEO during the transition.

However, the leadership transition was overshadowed by a disappointing earnings report. PayPal's fourth-quarter revenue of $8.68 billion and adjusted earnings of $1.23 per share missed analyst expectations.

More troubling for investors, however, was the sharp slowdown in its core online branded checkout business, which grew only 1% compared with 6% a year ago, which PayPal attributed to the weakness of U.S. retail and rising competition.

New CEO acknowledged the challenges stated: “the payments industry is changing faster than ever,” and committed to executing with “greater speed and precision.”