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PayPal (PYPL) delivered a turbulent finish to FY25, with its stock plunging over 15% following a double-miss on Q4 earnings and revenue estimates. The sell-off is being exacerbated by a cautious 2026 outlook and the surprise announcement that Enrique Lores, former President and CEO of HP, Inc. (HPQ), will succeed Alex Chriss as President and CEO effective March 1. While the company is attempting to pivot toward Agentic commerce and profitable growth in its Venmo and Enterprise segments, management’s admission that execution has "not been what it needs to be" and the subsequent withdrawal of long-term financial targets have created significant unease among investors.

• PYPL reported non-GAAP EPS of $1.23, missing estimates and facing pressure from a higher tax rate and sluggish branded checkout growth, which decelerated to just 1% in Q4 from 5% in Q3.
• Transaction margin dollars grew 3% to $4.0 bln, but faced compression as the company continues to encounter fierce competition for checkout presentment from Apple Pay and Shop Pay.
• Total Payment Volume (TPV) reached $475.1 bln (+9%), while active accounts grew 1.1% to 439 mln as management shifts focus toward "power users" transacting over 100 times annually.
• The company guided Q1 EPS to a mid-single-digit decline and FY26 EPS to a range of a low-single-digit decline to slightly positive growth, reflecting heavy reinvestment needs.
• The appointment of Enrique Lores, a seasoned executive from HPQ, is intended to bring disciplined execution, yet the transition is currently viewed as a negative signal of internal instability.
• PYPL is doubling down on its ecosystem through a new banking charter application and a strategic integration with OpenAI to embed digital wallets into ChatGPT.

Briefing.com Analyst Insight:

PYPL’s 4Q25 results signal a painful reality check, with the stock's plunge reflecting unease over the cessation of long-term financial targets. The appointment of Enrique Lores -- a veteran of large-scale transformations at HPQ -- suggests the Board is prioritizing disciplined execution over the optimistic timelines of the previous leadership. However, investors likely view this transition as a negative in the short term, as it signals that the prior turnaround strategy failed to move fast enough against rivals like Apple Pay. Management is now betting on Agentic commerce through OpenAI integrations and a new banking charter to decouple valuation from legacy headwinds. While Venmo’s 20% revenue growth remains a bright spot, the soft 2026 guidance indicates that the transition to business maturity will be costlier than anticipated. Until these investments meaningfully reverse the stagnation in branded checkout, the stock will likely struggle to regain momentum. Lores inherits a strong IP bedrock, but his immediate task is proving that PYPL can reclaim its dominant position in an increasingly crowded checkout landscape.