PayPal Q4 Revenue and EPS Miss Drive 17% Share Plunge
PayPal reported fourth-quarter revenue of $8.68 billion and adjusted EPS of $1.23, missing consensus forecasts of $8.80 billion and $1.30–$1.33 per share. The company simultaneously announced CEO Dan Schulman’s departure, named Enrique Lores as successor, and saw shares tumble 17% to a 12-month low near $53 on triple average volume.
1. Q4 Financial Performance
PayPal’s fourth quarter generated $8.68 billion in revenue and $1.23 in adjusted earnings per share, falling short of estimates by $120 million and roughly $0.07–$0.10 per share. The company projected a year-over-year EPS decline in 2026, marking its weakest guidance in recent memory.
2. Leadership Transition Timing
Longtime CEO Dan Schulman announced his exit concurrently with the earnings release, raising questions about succession planning. HP veteran Enrique Lores was named successor effective immediately, a move investors are scrutinizing for its rapid timing and strategic implications.
3. Market and Investor Reaction
Shares plunged 16–17% to around $53, a 12-month low, on trading volume three to four times the 30-day average. Major funds have trimmed or exited positions, contributing to a one-month drop of nearly 27% and a 12-month decline of 48% in market value.