PayPal sees 2026 profit below estimates, names Enrique Lores as CEO

PayPal issued a lackluster profit forecast for 2026 and reported fourth-quarter earnings ‍below Wall Street expectations on Tuesday, pressured by weaker US retail spending and slower growth in ⁠its branded checkout segment.

The company’s shares fell 9% in premarket trading after the results. It also named HP’s Enrique Lores as president and CEO, effective March 1.

Retail spending has softened as ‌cautious consumers, squeezed ‌by still-high interest rates, stubbornly high living costs and signs of a softening labor market, cut back ‌on discretionary purchases and prioritize everyday necessities, a pattern highlighted by major retailers and consumer goods companies as households navigate tighter budgets.