PayPal shares crashed by more than 20% on Tuesday after posting its Q4 earnings, in which interim CEO and chief financial officer Jamie Miller anticipated a slowdown in performance in 2026.
Markets have registered a pessimism among traders and investors, who are not bullish on the company’s stock—especially after Miller said that operations were not coming up to expectations, which could affect 2026 earnings.
“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,” said Miller.
At the same time, our execution has not been where it needs to be, particularly in branded checkout. As announced today, the Board’s appointment of Enrique Lores as PayPal’s next President and CEO reflects a clear commitment to strengthening execution, innovation, and results. We are fully aligned on the path forward as PayPal enters its next chapter of growth.” he also said.
Revenues for Q4 2025 were estimated at $4 billion. GAAP operating income was $1.5 billion with a GAAP operating margin of 17.4%.
The update comes alongside a shuffle in leadership ranks. Board chair Enrique Lores will be the new CEO and Chairman of the company, replacing Alex Chriss who has been CEO for more than two years, since his appointment in September 2023. Prior to his new appointment, Lores had been on the board for 5 years and was appointed as board chair in 2024.
To facilitate the transition, Chief Financial Officer Jamie Miller was made interim head of PayPal.
“We will further strengthen the culture of innovation necessary to deliver long-term transformation and balance this with near-term delivery, executing with greater speed and precision, and holding ourselves accountable for consistent delivery quarter on quarter, to further assert PayPal’s industry leadership position,” said Enrique Lores.
At the time of writing, PayPal shares were trading at $40.22, down by 3.55%, while over the past five days, the stock has tumbled by 3.55%.