PayPal's growing competition is a 'pressure point': Analyst

February 3, 2026 - 23:28

PayPal's stock faced significant pressure Tuesday following a disappointing financial forecast extending to 2026, overshadowing its fourth-quarter earnings. The payments giant anticipates only mid-single-digit earnings growth for that year, a projection that has rattled the market and raised questions about its competitive trajectory.

This period of uncertainty coincides with a major leadership change. The company has named Enrique Lores, currently the CEO of HP Inc., as its next chief executive, effective March 1. Lores will depart his role at HP, which he has led since 2019, to steer PayPal through its current challenges.

Analysts point to increasing competition as a core issue. "The growing competition is a pressure point," noted Macquarie Capital senior equity research analyst Paul Golding, who maintains an Outperform rating on the stock. He suggests that while new leadership could provide a fresh strategic perspective, the subdued guidance highlights the intense battle for market share in the digital payments sector. Investors are now weighing the potential for a turnaround under new management against the clear headwinds outlined by the company's own forecasts. The coming months will be critical as the market assesses Lores's vision for reigniting PayPal's growth.