NASDAQ: PYPL
NEW YORK, Feb. 18, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP is investigating PayPal Holdings, Inc. (NASDAQ: PYPL) following the company's simultaneous announcement of disappointing fourth quarter results and the departure of CEO Dan Schulman, with HP veteran Enrique Lores named as his successor. Investors who purchased PayPal shares and suffered losses may obtain more information about this investigation by clicking here.
The digital payments industry has undergone significant transformation since PayPal's separation from eBay in 2015. What was once a dominant force in online checkout has faced mounting competition from newer entrants including Block's Square, Stripe, Apple Pay, and buy-now-pay-later services like Affirm and Klarna. According to industry analysts at Rothschild & Co Redburn, the "marginal consumer" has increasingly moved away from PayPal's platform toward alternatives offering better merchant economics or tighter integration with mobile ecosystems.
On February 3, 2026, PayPal reported fourth quarter 2025 revenue of $8.68 billion, falling short of the $8.80 billion consensus estimate. Adjusted earnings came in at $1.23 per share, below analyst expectations of $1.30 to $1.33 per share. The company also disclosed that 2026 would see a year-over-year decline in earnings per share, substantially below prior Wall Street forecasts of continued growth.
The leadership transition announcement was particularly notable for its timing. CEO succession planning at public companies typically involves multi-quarter preparation periods with clear transition milestones. The simultaneous disclosure of Schulman's departure alongside the company's weakest guidance in recent memory raised questions among market observers about when the board and management first became aware of both the performance shortfall and the need for new leadership.
Following the announcements, PayPal shares declined 16-17% in early trading, reaching a new 12-month low around $53. Trading volume spiked to approximately three to four times the 30-day average. The stock had already been under pressure following a January 28 downgrade from Rothschild & Co Redburn, which cut its price target to $50 from $70 and moved its rating to Sell.
Shareholders who purchased PayPal stock during the period in question and wish to discuss their legal rights may click here to learn more about this investigation.
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
