Performance Increased but Profit Guidance Declines: New CEO and Dividend Strategy from U.S. Payment Giant

US online payments firm PayPal Holdings, Inc. (NASDAQ: PYPL) reported a 4% rise in net revenue for Q4 2025 and the full year, reaching $33.2 billion, alongside improvements in GAAP operating income and margins. The company also grew its total payment volume, continued share repurchases and maintained strong cash generation.

For 2026, however, PayPal issued conservative guidance, forecasting a mid-single-digit decline in GAAP EPS and roughly flat non-GAAP EPS. It announced a new quarterly dividend of $0.14 per share and named Enrique Lores as its next CEO, effective March 1.

Around the earnings release, certain executives sold small stakes under prearranged trading plans, while the board chair opted to receive equity rather than cash—boosting his voting stake through a revised compensation structure.

After the results fell short of expectations and the 2026 outlook disappointed, PayPal’s share price plunged nearly 20% in a single day on the New York Stock Exchange, amplifying volatility. Investor unease was further stoked by news that a U.S. law firm has launched a securities probe into the gap between prior company guidance and actual Q4 2025 results.

PayPal remains a leading digital-payments platform connecting hundreds of millions of consumers and merchants worldwide, a role that has benefited from e-commerce growth. Yet it faces intensifying competition from big-tech wallets such as Apple Pay and Google Pay, as well as fintech providers in various markets.

With growth moderating amid high interest rates and a slowdown in U.S. consumer spending, the online-payments and fintech industry still commands significant medium- to long-term growth potential. Market attention now centers on PayPal’s path to restoring profitability and executing new business strategies—and the broader impact on the sector.