PayPal has replaced its CEO amid a failed report. Shares fell 15%

Payment service PayPal announced a CEO change amid the release of its fourth-quarter 2025 report, in which the company reported lower-than-expected earnings and revenue. PayPal's shares fell by more than 15% on the premarket on February 3.

According to the company, PayPal CEO Alex Kriss will be replaced on March 1 by the head of HP Technology Corporation Enrique Lores. Until he takes office, PayPal CFO Jamie Miller will serve as PayPal's CEO, the press release said. Last October, she warned that the macroeconomic situation could prevent the company from achieving its long-term goals, as PayPal's management is still struggling to effectively monetize the company's payment services, Bloomberg notes.

"While progress has been made in a number of areas over the past two years, the pace of change and quality of execution have not met the board's expectations," said David Dorman, the company's new chairman. Prior to him, Enrique Lores had held the position since the summer of 2024.

In its quarterly filing, PayPal reported fourth-quarter 2025 earnings per share of $1.23 and revenue of $8.68 billion, both of which fell short of analysts' expectations, Bloomberg notes.

PayPal also reported full-year earnings per share of $5.31, which was below its October forecast in the range of $5.35 to $5.39. PayPal had previously raised its full-year forecast twice - in July and October last year - but ultimately failed to meet it.

The company cited weakness in U.S. retail spending and unfavorable factors in international markets. Growth in PayPal-branded online payments slowed to 1% from 6% a year earlier, according to a separate company report, Bloomberg points out.

This article was AI-translated and verified by a human editor