PayPal Holdings (PYPL) Stock has plummeted over 19% during Tuesday’s trading session after its latest quarterly report forecasted weak 2026 earnings. PayPal expects full-year adjusted profit to decline in the low-single-digit percentage to increase slightly, compared with Wall Street expectations of about 8% growth, according to data compiled by LSEG.
In addition to the lower forecast, PayPal also issued Q4 2025 earnings that were lower than Wall Street estimates. It reported revenue of $8.68 billion for the holiday quarter, missing the $8.80 billion estimate. Total payment volumes rose 6% on an FX-neutral basis to $475.1 billion. Adjusted profit was $1.23 per share during the three months ended December 31, also below analysts’ view of $1.28. The Q4 results are in contrast to a typical holiday quarter for payments firms, as consumers usually spend more freely on gifts, travel, and seasonal promotions.
PayPal (PYPL) Appoints New CEO
Furthermore, PayPal officially appointed its new CEO, Enrique Lores. Lores will serve as President and CEO, effective March 1, 2026, succeeding Alex Chriss. David W. Dorman has also been appointed as PayPal’ sIndependent Board Chair, effective immediately. “Enrique is widely recognized as a visionary leader who prioritizes customer-centric innovation with demonstrable impact. His strong track record leading complex transformations and disciplined execution on a global basis will ensure PayPal maintains its leadership of the dynamic payments industry now and into the future,” said Dorman. “I look forward to continuing to work with the Board and supporting Enrique as he takes on the CEO role.”
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Despite the dip, many analysts and investors still believe PayPal stock may be undervalued relative to its historical performance and earnings potential. While some firms have downgraded their PayPal (PYPL) forecasts, there’s still a consensus that the stock will rebound and perform well in 2026.
Keefe, Bruyette & Woods maintains an Outperform rating with a $90 price target, significantly higher than the current $42 market price, showcasing confidence. Meanwhile, Citigroup and B of A Securities offer more conservative targets of $60 and $68, respectively, reflecting a cautious outlook.