PayPal Earnings Miss Expectations
Feb 3, 2026 By MarketDepth
PayPal Holdings, Inc. (NASDAQ: PYPL) released its fourth-quarter 2025 financial results, reporting revenue of about $8.68 billion and adjusted earnings per share of $1.23. These figures came in below market expectations—analysts had forecast a slightly higher EPS and revenue—leading to concerns about the company’s growth trajectory as overall digital payments demand softens amid macroeconomic pressures.
Despite solid revenue growth compared with the prior year, PayPal’s stock fell sharply in after-hours and extended trading following the release, with shares plunging more than 16 % to 20 % as investors reacted to the earnings miss and a disappointing outlook for 2026. The sell-off pushed the stock toward its lowest levels in nearly a decade, underscoring how sensitive the market has become to any sign of slowing momentum at the fintech giant.
One of the main drivers of the negative reaction was weaker guidance and profit forecasts. PayPal signaled that its profit growth may be flat or even slightly declining for the coming year, which fell short of Wall Street’s expectations for modest growth. In addition, the company announced a leadership change, naming former HP CEO Enrique Lores as its next chief executive as the board showed dissatisfaction with past execution pace.
Investors were also watching slowing growth in key segments like branded checkout, which is typically more profitable for PayPal. Growth in that area slowed to around 1 % year-over-year in the quarter—well below historical trends and investor hopes—adding to concerns about competitive pressures from rivals such as Apple Pay, Google Wallet and Buy-Now-Pay-Later platforms.
