PayPal has forecasted a weaker profit outlook for 2026 and reported fourth-quarter earnings below Wall Street expectations, leading to a nearly 17% drop in its stock price. The company announced the appointment of Enrique Lores, former CEO of HP, as its new President and CEO, effective March 1, 2026. Lores succeeds interim CEO Jamie Miller, who will serve until then. The board cited that the pace of change and execution under current CEO Alex Chriss did not meet expectations. The company faces challenges from declining post-pandemic trading volumes and increased competition from big tech firms like Apple and Google, as well as fintech rivals. PayPal expects full-year adjusted profit to decline slightly or grow marginally, contrasting with Wall Street’s forecast of about 8% growth. Revenue for the holiday quarter was $8.68 billion, below the estimated $8.80 billion, with total payment volumes rising 6% to $475.1 billion. Adjusted earnings per share were $1.23, also below analysts’ expectations of $1.28. Growth in PayPal’s branded checkout segment decelerated significantly to 1%, impacted by weaknesses in U.S. retail and international headwinds. The company aims to restore momentum in this higher-margin business. Lores, with over three decades of experience in technology and leadership, is expected to bring strategic transformation and innovation to the company, especially amid a rapidly changing payments industry driven by new technologies and AI advancements.