PayPal Q4 Revenue Falls $120M, EPS Miss by 5.4%, Stock Drops 19%
PayPal’s Q4 2025 revenue of $8.68B fell $120M (1.4%) short of estimates and adjusted EPS of $1.23 missed projections by 5.4%. Shares plunged about 18–19% to a 52-week low near $42–43 from $55.51, as 2026 guidance forecasts low single-digit revenue growth and mid-single-digit EPS decline.
1. Earnings Miss and Market Response
In Q4 2025 PayPal generated $8.68 billion in revenue, missing consensus by $120 million (1.4%), while adjusted EPS came in at $1.23, 5.4% below expectations. Shares plunged approximately 18–19%, opening near $42–43 versus a pre‐announcement level around $55.51, establishing a 52‐week low on heavy volume.
2. Analyst Downgrades and Price Target Reductions
Prior to the earnings release, Rothschild & Co Redburn and Morgan Stanley had already trimmed PayPal’s price targets to $50, citing slower checkout growth trends. Following the Q4 miss, additional firms downgraded the stock and lowered targets, reinforcing negative sentiment among investors worried about future performance.
3. 2026 Outlook Amplifies Concerns
PayPal’s outlook for 2026 projects low single-digit revenue growth and mid-single-digit declines in adjusted EPS, both well below prior Street expectations. The subdued guidance has intensified investor caution, raising questions about the company’s ability to regain momentum in a competitive payments environment.