PayPal's Q4 revenue misses estimates, appoints new CEO

PayPal Holdings

03/02/2026 12:16

Overview

Payment platform's Q4 revenue rose 4% but missed analyst expectations

Adjusted EPS for Q4 rose 3% but missed analyst expectations

Company appointed Enrique Lores as new CEO to strengthen execution and innovation

Outlook

PayPal expects 1Q26 GAAP EPS to decline mid-single digits from $1.29

Company anticipates FY26 GAAP EPS to decline mid-single digits from $5.41

PayPal projects FY26 non-GAAP EPS to range from low-single digit decline to slightly positive

Result Drivers

DIVERSIFIED GROWTH - PayPal reported diversified growth across multiple areas, contributing to revenue and EPS increases

BRANDED CHECKOUT EXECUTION - PayPal acknowledged execution issues in branded checkout, aiming to improve under new CEO

TRANSACTION MARGIN INCREASE - Transaction margin dollars rose 3%, excluding interest on customer balances, it increased 4%

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$8.70 bln
$8.80 bln (32 Analysts)
Q4 Adjusted EPS
Miss
$1.23
$1.28 (32 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 15 "strong buy" or "buy", 24 "hold" and 5 "sell" or "strong sell"

The average consensus recommendation for the business support services peer group is "buy."

Wall Street's median 12-month price target for PayPal Holdings Inc is $69.00, about 31.9% above its February 2 closing price of $52.33

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)