PayPal tumbles after weak holiday-quarter results + 2026 profit outlook misses expectations

What happened

PayPal ($PYPL) reported Q4 revenue of about $8.68B and adjusted EPS of about $1.23, both below expectations, then guided 2026 profit to be flat-to-down versus Wall Street forecasts. Management also flagged slowing growth in higher-margin “branded checkout” (about 1% growth in Q4), and the company announced a CEO change (with an interim CEO before the new CEO starts).

Why markets care

This is a “confidence shock” for the payments/fintech complex: PayPal’s narrative has been margin + branded checkout stabilisation, but the guide says that turnaround may take longer, while competition in digital checkout keeps intensifying.

Winners

Big Tech wallets + default mobile pay rails

If PayPa ...