PayPal shares plunged more than 20% in a single session, erasing roughly $10 billion in market capitalization after the company reported a surprise CEO departure, missed fourth-quarter earnings expectations and issued a weaker-than-anticipated outlook for the year ahead. Fourth-quarter revenue of $6.7 billion and adjusted earnings per share of $1.23 both fell short of analysts’ consensus, triggering the steepest intraday drop since early 2022 and pushing the stock to its lowest levels in nearly a decade.

The company’s flagship branded checkout service grew by just 1% year-over-year in Q4, down sharply from 5–6% growth in prior quarters. Management attributed the slowdown to softer U.S. retail spending, headwinds in key international markets such as Germany, and cooling demand in high-growth verticals like travel and gaming. This loss of momentum underscores intensifying competition from alternative payment providers that have chipped away at PayPal’s online checkout market share.

In response to execution challenges, the board immediately replaced CEO Alex Chriss—who had held the role since late 2023—with interim leadership from the finance chief, while announcing the appointment of Enrique Lores, former technology industry executive, as permanent CEO effective March 1. The new mandate emphasizes accelerating product rollouts, strengthening merchant integrations and expanding biometric authentication, with management guiding to only low-single-digit or flat branded checkout growth in fiscal 2026 as it refines its multiyear strategy.