PayPal Holdings Inc. announced a major leadership change on February 3, 2026. The company said that CEO Alex Chriss will step down following disappointing earnings and a weak outlook. As a result, PayPal has appointed Enrique Lores, the former CEO of HP Inc., as its new chief executive.
The decision marks one of the most significant management changes at PayPal in recent years. Importantly, it comes at a time when the company is facing slowing growth and rising competition.
Why PayPal Changed Its CEO
Alex Chriss took over as CEO in 2023 with a clear mandate. He was expected to speed up PayPal’s transformation and strengthen core products. These included Venmo, Buy Now Pay Later, and branded checkout services.
However, progress did not meet the board’s expectations. While some improvements were made, overall growth remained sluggish. Meanwhile, competitors continued to gain market share.
According to the board, the pace of change was simply not fast enough. Therefore, directors decided that a leadership shift was necessary.
Who Is Enrique Lores?
Enrique Lores is a seasoned technology executive with decades of experience. Previously, he served as President and CEO of HP Inc. During his tenure, HP focused on efficiency, innovation, and long-term strategy.
In addition, Lores is already familiar with PayPal. He joined PayPal’s board several years ago and later became board chair in 2024. Because of this, the board viewed him as a natural successor.
Leadership Transition Plan
The transition will happen in phases. Enrique Lores will officially take charge as President and CEO on March 1, 2026.
Until then, PayPal’s CFO and COO, Jamie Miller, will serve as interim CEO. At the same time, David W. Dorman has been appointed as independent board chair.
As a result, PayPal aims to maintain stability while preparing for a new strategic direction.
Earnings Miss Triggers Market Reaction
The leadership change followed PayPal’s latest earnings report. The company missed analyst expectations for both revenue and profit in the fourth quarter.
More importantly, PayPal issued a cautious profit forecast for 2026. The guidance came in well below Wall Street estimates. Because of this, investor confidence took a hit.
Following the announcement, PayPal shares fell sharply. In fact, the stock dropped by as much as 18% in a single trading session.
Growing Competitive Pressure
PayPal is operating in an increasingly crowded digital payments market. Apple Pay, Google Pay, and several fintech firms are aggressively expanding.
Meanwhile, growth in PayPal’s high-margin branded checkout business has slowed. This trend has raised concerns about the company’s long-term competitiveness.
Therefore, analysts believe PayPal must execute faster and innovate more effectively.
What This Means for PayPal’s Future
The appointment of Enrique Lores signals a shift in priorities. The board is now emphasizing execution, operational discipline, and accountability.
Going forward, PayPal will need to restore investor confidence. It must also show stronger growth in key business segments. Additionally, clearer strategic communication will be critical.
For now, the market will closely watch PayPal’s next few earnings reports. Ultimately, Lores’s ability to deliver results will determine whether this leadership reset succeeds.
