PayPal said its board has decided to replace CEO Alex Chriss and appoint Enrique Lores, the current chief executive of HP Inc., as the company’s next president and CEO, with the change set to take effect on March 1.
Ahead of that start date, Jamie Miller, PayPal’s CFO and COO, is expected to serve as interim CEO. The company also named David Dorman as independent chair of the board, separating the chair role from day-to-day management as the transition begins.
The board framed the decision as a response to an operating environment in which digital payments firms face fast-moving shifts, from product innovation and changing consumer behavior to regulatory scrutiny and new forms of competition. PayPal said the “pace of change” and execution did not meet board expectations over roughly the last two years, a period in which major rivals have expanded their ecosystems and pushed deeper into checkout, wallets, and point-of-sale experiences.
Earnings Miss and a Downbeat Near-Term View
The leadership change coincided with results and guidance that fell short of market expectations. PayPal reported adjusted earnings of $1.23 per share on $8.68 billion in revenue for its latest quarter, both below forecasts cited in reporting on the release.
Management also pointed investors to softer expectations for the next quarter, which contributed to a sharp negative market reaction. In premarket trading, PayPal shares were down by the mid-to-high teens in initial moves reported by major outlets, reflecting concerns about growth, execution, and how quickly the company can re-accelerate key products while protecting margins.
Separately, Reuters reported that PayPal projected flat to slightly declining profits for 2026 and withdrew a previously stated 2027 outlook, citing a tougher macro backdrop that includes pressured retail spending and higher living costs, factors that can weigh on transaction volumes and branded checkout momentum.
Strategy Under Pressure: Checkout, Venmo, and Competition
PayPal has spent the post-pandemic period trying to regain a clearer growth narrative after e-commerce normalization and intensifying competition. Under Chriss, the company emphasized sharpening performance in higher-margin products, particularly branded checkout, while also looking for ways to expand monetization opportunities across its portfolio, including Venmo and Buy Now, Pay Later services.
Still, key metrics showed signs of slowing. Reuters reported that growth in branded checkout services eased to 1% in the quarter, down from 6% a year earlier, underscoring how difficult it has become to defend share at the online checkout button.
That pressure is coming from several directions. Big tech wallet offerings such as Apple Pay and Google Pay remain embedded in mobile hardware and operating systems, while e-commerce and fintech providers have strengthened their own checkout tools. The Financial Times highlighted competitive threats, including Shop Pay and installment-payment specialists such as Klarna and Affirm, as merchants look for faster checkout, better conversion rates, and more integrated financing options.
At the same time, the company has pointed to artificial intelligence as both an opportunity and a competitive accelerant across fraud prevention, personalization, and merchant tools—areas where rivals can rapidly iterate, putting a premium on execution speed and product clarity.
What Lores Inherits as the Transition Begins
Incoming CEO Enrique Lores arrives with experience leading a large, consumer- and enterprise-facing technology company and prior involvement at PayPal as a board member. In reporting on the transition, PayPal positioned the move as an effort to tighten execution and respond more quickly to a payments landscape that is evolving in real time.
In the near term, investors will be watching for concrete steps to stabilize core checkout performance while continuing to develop monetization in products like Venmo. Reuters reported that executives discussed “near-term steps” to improve branded checkout trends but did not commit to a precise turnaround timeline.
The transition also comes at a moment when Wall Street appears focused on whether PayPal can simplify its strategy, compete effectively at checkout, and show clearer progress against forecasts that have recently disappointed. How quickly leadership can translate operational changes into measurable product and financial improvements is likely to shape sentiment as March 1 approaches and the new CEO takes the helm.
