In the fourth quarter of 2025, PayPal generated $8.68 billion in net revenues, up 3.7% year over year, and delivered adjusted EPS of $1.23, a 3.4% increase, while total payment volume rose 8.8% to $475.1 billion. Despite these gains, both top-line and EPS figures fell short of analyst consensus, driving the stock down 9.6% following the release.

For full-year 2026, PayPal forecasts adjusted free cash flow above $6 billion and plans $6 billion in share repurchases, yet expects transaction margin dollars and EPS to see low-single-digit declines to marginal gains. The shares now trade at a forward P/E of 8.7× versus the industry’s 18.2×, reflecting a Value Score of A and signaling a valuation discount to peers.

With the stock under pressure, PayPal has engaged bankers to prepare for potential activist defense or unsolicited bids, marking a resurgence of takeover discussions. This strategic review coincides with the appointment of Enrique Lores as CEO, who is expected to drive execution discipline and refocus growth initiatives upon his arrival.