Shares of PayPal Holdings Inc. (NASDAQ: PYPL) fell more than 17% on Tuesday, February 3, marking one of the biggest single-day drops for the company in years.

The decline followed two major announcements: weaker-than-expected quarterly results and a sudden change in executive leadership.

The PayPal board named Enrique Lores, former President and CEO of HP Inc., as the new CEO. He will officially take charge on March 1, 2026.

Alex Chriss, the previous CEO, led the company for nearly two and a half years. The board said, “the pace of change and execution was not in line with the Board’s expectations.”

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David W. Dorman was appointed Independent Board Chair immediately, while CFO Jamie Miller will serve as interim CEO during the transition.

PayPal reported fourth-quarter revenue of $ 8.68 billion and adjusted earnings of $1.23 per share, missing analyst expectations.

Investors were particularly concerned about the slowdown in PayPal’s core online branded checkout business, which grew only 1% compared to 6% last year. PayPal blamed weak U.S. retail sales and growing competition.

New CEO Enrique Lores acknowledged the challenges, saying, “the payments industry is changing faster than ever,” and promised to act with “greater speed and precision.”