PayPal shares plunge more than 19% after earnings miss, CEO exit and weaker outlook

PayPal shares fell more than 19% on February 3, 2026, their steepest drop in years, after the Q4 miss, the reset 2026 profit outlook and the CEO change. Management also pulled back from longer-term targets and said EPS would decline in the March quarter and across 2026, while analysts had expected growth. Analysts had expected growth, so the reset hit the stock hard.

• Shares fell more than 19% in US trading on February 3
• Trigger: Q4 non-GAAP EPS of $1.23 below expectations, plus the CEO removal
• Management pulled back from longer-term targets and guided to a mid-single-digit EPS decline in the March quarter