PayPal faces a pivotal moment marked by weak results, disappointing guidance, and a sudden leadership shake-up.
On February 3, 2026, PayPal announced that President and CEO Alex Chriss is stepping down, effective immediately. CFO and COO Jamie Miller will serve as interim CEO, and HP CEO Enrique Lores will become PayPal’s President and CEO on March 1, 2026. PayPal also appointed David W. Dorman as independent board chair, citing a pace of change and execution that fell short of expectations.
The numbers that set off the alarm
PayPal reported adjusted earnings per share of $1.23 for the quarter, below the analyst consensus of $1.29. Revenue came in at $8.68 billion, also below expectations.
The headline growth metric still looked healthy at first glance. Total payment volume rose 9 percent to $475 billion. But the mix mattered.
The most profitable lane—branded checkout centered on the PayPal button, sharply decelerated. Currency-adjusted branded checkout volume grew just 1 percent, signaling an urgent loss of momentum against previous quarters.
Engagement signals also weakened. Transactions per active account fell about 5 percent year over year to 57.7, while active accounts reached roughly 439 million with only marginal growth.
A guidance reversal after two raises
PayPal had raised full-year expectations twice, yet still missed its own full-year earnings-per-share target.
Management also pointed to a pronounced fourth-quarter slowdown in several areas that had been delivering growth, including travel and ticketing, crypto, and gaming.
The market reaction and what the board is signaling
Shares dropped sharply in pre-market trading on the earnings miss and weaker outlook.
Boards rarely use blunt language in CEO transitions. This time, the urgent message was explicit: execution speed was the problem, and the reset could not wait.
Why branded checkout matters more than the headline TPV
PayPal can grow total payment volume across multiple channels, including lower-margin flows. Branded checkout is different. It tends to carry stronger economic implications and is closely linked to consumer habits and merchant preferences.
When branded checkout growth slows to low single digits, it raises two strategic questions investors care about most:
- Competitive pressure at the point of decision
- Checkout is where alternatives win share quickly, especially as platforms and wallets improve conversion rates, fraud detection, and one-click experiences.
- Product velocity inside PayPal’s core
- If PayPal’s highest-margin product is decelerating, the market will demand evidence of a roadmap that quickly lifts conversion, frequency, and merchant attach rates.
What to watch between now and March 1
With Jamie Miller as interim CEO and Enrique Lores set to take over on March 1, the next month becomes a critical window for urgent stabilization and sharper operating priorities.
If you are tracking whether the reset works, the most telling indicators will be:
- Branded checkout volume growth and take rate trajectory
- Transactions per active account, especially in the US
- Margin performance tied to product mix
- Evidence that the outlook can improve as the year progresses, rather than drifting lower quarter by quarter
PayPal’s board is treating this quarter as an inflection point. The company still has scale, distribution, and a strong payments footprint, but the earnings miss, the branded checkout slowdown, and a downbeat outlook forced a leadership handoff aimed at increasing speed and operational accountability.