PayPal Shares Plunge 20.3% After Scrapping 2027 Targets and CEO Exit
PayPal reported Q4 2025 results below expectations, withdrew its 2027 financial targets and saw its shares tumble 20.3% in a single session. The company also announced its CEO’s sudden departure and faces a securities class action over alleged misconduct during the period.
1. Q4 Results and Share Decline
PayPal released its fiscal year 2025 fourth-quarter results that fell short of consensus estimates, triggering a 20.3% one-day share price decline. Reported revenue growth and non-GAAP EPS missed projections, highlighting deceleration in Branded Checkout total payment volume expansion.
2. Withdrawal of 2027 Targets
Management officially retracted its three-year guidance aiming for 8%–10% annual TPV growth and over 20% non-GAAP EPS growth by 2027. The move reflected operational deployment issues across regions and heightened macroeconomic and competitive pressures, undermining previous growth assumptions.
3. CEO Departure and Legal Action
The company disclosed the abrupt departure of its CEO, raising questions about leadership continuity and execution of its modernized checkout strategy. A securities class action lawsuit alleges that investors were misled by withdrawn targets, exposing PayPal to potential financial and reputational risks.