PayPal CEO change sees Alex Chriss replaced by Enrique Lores as growth slows, profit forecast weakens and shares drop sharply

PayPal’s board has abruptly replaced CEO Alex Chriss, citing disappointment with the pace of change and execution as the company struggles with slowing growth and intensifying competition.

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The move followed a revised profit forecast for 2026, which sent PayPal shares tumbling 19% in after-hours trading.

Chriss, hired to guide the payments giant through post-pandemic challenges, was tasked with reviving growth as transaction volumes slowed and rivals from tech giants to agile fintech startups expanded in the payments sector.

In a decisive shake-up, PayPal appointed Enrique Lores, current CEO of HP, as its new president and CEO.

Lores, who led HP for over six years, is expected to take over on 1 March, while PayPal’s CFO Jamie Miller will serve as acting CEO in the interim.

“The board’s expectations for progress were not met,” PayPal said, highlighting its urgency for a clearer turnaround strategy.

Analysts questioned whether Lores will pursue a more aggressive restructuring or explore strategic options, including potential asset sales.

Evercore ISI analysts noted: “The big question is whether he will bring in a formidable payments team to attempt yet another multi-year turnaround or look to start reviewing options for strategic assets.”

Adding pressure to the leadership change, PayPal revised its full-year profit outlook downward, now expecting adjusted profit to range between a low-single-digit decline and a slight increase well below Wall Street’s 8% growth forecast.

The company also abandoned its previous long-term 2027 forecast, opting for annual guidance only.

PayPal attributed the weaker outlook to slowing consumer spending amid inflation and high interest rates.

Jamie Miller, acting CEO, said: “We saw pressure across our retail merchant portfolio, particularly among lower and middle-income consumers. While part of this can be attributed to macro factors, it’s also clear that we need to do more to win with key merchants.”

Holiday-quarter results reflected the slowdown. Revenue came in at $8.68 billion, missing analysts’ $8.80 billion estimate, while adjusted earnings per share were $1.23, below the $1.28 forecast.

Growth in PayPal’s higher-margin branded checkout business, a central focus of Chriss’ tenure, also decelerated sharply.

The segment rose just 1% in the fourth quarter versus 6% a year earlier, driven by weaker U.S. retail demand and international challenges.

Investors remain concerned that Big Tech rivals, including Apple and Google, could further erode PayPal’s market share despite its longstanding leadership in digital payments.