PayPal's Q4 revenue misses estimates, appoints new CEO

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

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

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