The new CEO will be current HP Inc. managing director Enrique Lores, who will assume the position effective March 1. Enrique Lores, who will take office on March 1. Until then, PayPal’s Chief Financial and Operating Officer Jamie Miller will perform the duties of the head, cnbc.com writes.
The change of management was accompanied by a sharp market reaction: PayPal shares collapsed by more than 17% after the announcement of the resignation of Alex Kriss and the publication of financial statements for the fourth quarter, which did not meet analysts’ expectations.
The newly appointed independent chairman of PayPal’s board of directors, David Dorman, admitted that despite some positive developments over the past two years, the pace of change and quality of implementation had not met the board’s expectations. The company itself effectively abandoned its previously announced financial projections.
Alex Criss took over as PayPal’s CEO in 2023. He promised to focus on profitability and the relaunch of PayPal’s branded Checkout service. Meanwhile, growth in branded online payments slowed to 1% in the fourth quarter from 6% a year earlier.
The financial results only added to investor skepticism, with fourth-quarter earnings per share of $1.23 and revenue of $8.68 billion, below consensus forecasts. For the year, PayPal earned $5.31 per share, though it had forecast $5.35 to $5.39 back in the fall, raising expectations twice but ultimately falling short. The company also warned of a possible slight decline in transaction margins in fiscal 2026.
Analysts note that the staffing changes came sooner than the market expected. The key question now is whether Lores will bring in a strong new team for PayPal’s multi-year relaunch and whether the company will begin a review of strategic assets.
Against that backdrop, PayPal is also trying to expand its business: in the fourth quarter, the company filed applications for a U.S. banking license with the Federal Deposit Insurance Corp. and Utah’s financial regulator, which should strengthen its small-business lending capabilities. In Europe, PayPal already holds a banking license.
For PayPal, Lores’ arrival means a new attempt to emerge from prolonged stagnation – amid growing competition, market pressure and declining investor confidence.
