PayPal replaced CEO Alex Chriss, citing poor performance and issued a lackluster profit forecast for 2026, causing shares to drop 19%. New CEO Enrique Lores will take over on March 1. Analysts question the company’s turnaround strategy.

PayPal expects adjusted profit for 2027 to decline slightly or increase slightly, disappointing Wall Street’s 8% growth expectation. Weakening retail spending due to high living costs impacts consumer purchasing behavior. Revenue for the holiday quarter fell short at $8.68 billion, with adjusted profit at $1.23 per share.

Outgoing CEO Chriss focused on growing PayPal’s branded checkout business, which decelerated to 1% growth in Q4. Entry of Big Tech companies like Apple and Google poses a threat. PayPal is taking action to boost branded checkout momentum, but timing for overall improvement remains uncertain.

Read more at Yahoo Finance: PayPal shares sink on CEO exit, disappointing 2026 profit forecast