PayPal Shares Plunge to 12-Month Low After Q4 Miss; Revenue and EPS Both Fall Short of Estimates

NASDAQ: PYPL

NEW YORK, March 4, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP is investigating PayPal Holdings, Inc. (NASDAQ: PYPL) following the company's fourth quarter 2025 earnings miss that sent shares tumbling to their lowest level in a year. Investors who purchased PayPal stock and experienced losses may click here for more information.

According to data compiled from Yahoo Finance, CNBC, Reuters, MarketWatch, and Seeking Alpha, the consensus analyst estimate heading into the February 3 earnings report called for revenue of $8.80 billion and adjusted earnings per share in the range of $1.30 to $1.33. PayPal delivered revenue of $8.68 billion, a shortfall of $120 million or approximately 1.4%. Adjusted EPS of $1.23 missed the low end of expectations by 5.4%.

The stock's reaction was immediate and pronounced. PayPal shares opened sharply lower on February 3, declining between 18% and 19% in midday trading. From a pre-announcement price of approximately $55.51, shares have fallen to the $42-$43 range, establishing a new 52-week low. This represented the stock's weakest level since late-2023. Trading volume spiked to three to four times the 30-day average, reflecting heavy selling pressure.

Multiple Wall Street firms had already turned cautious on PayPal before the earnings release. Rothschild & Co Redburn downgraded the stock on January 28, cutting its price target to $50 from $70. Morgan Stanley followed on January 29-30, also trimming its target to $50 while flagging concerns about slower checkout growth. Following the earnings miss, additional analyst downgrades and price target reductions reinforced the negative sentiment.

The company's 2026 guidance compounded investor concerns. PayPal projected a first low single-digit revenue growth and adjusted earnings per share to be "down mid-single digits," both significantly below prior Street expectations.

Shareholders who lost money on their PayPal investment are invited to discuss their legal rights with Levi & Korsinsky at no charge.

Levi & Korsinsky, LLP is a nationally recognized firm with offices in New York, California, Connecticut, and Washington, D.C. that prosecutes securities, consumer, and shareholder class actions on behalf of investors (www.zlk.com).

CONTACT:

Joseph E. Levi, Esq.

Levi & Korsinsky, LLP

33 Whitehall Street, 27th Floor

New York, NY 10004

Tel: (212) 363-7500

Fax: (212) 363-7171

Email: [email protected]

www.zlk.com

SOURCE Levi & Korsinsky, LLP