PayPal Holdings Inc

Promise vs. Reality: The PayPal Branded Checkout Performance Gap

NEW YORK, April 16, 2026 /PRNewswire/ -- On February 25, 2025, PayPal Holdings, Inc. (NASDAQ: PYPL) executives told investors they would "accelerate TPV growth to between 8% and 10% by 2027." Less than one year later, the Company withdrew those targets entirely, its CEO was terminated, and shareholders lost $10.63 per share in a single day.

Check if you qualify to recover losses from PayPal's broken promises or contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

PayPal stock dropped 20.31% on February 3, 2026, falling from $52.33 to $41.70 per share after the Company disclosed "operational and deployment issues across all regions" and pulled its 2027 financial targets. The lead plaintiff deadline is April 20, 2026.

The Promise

At its February 25, 2025 Analyst/Investor Day, PayPal's leadership laid out an aggressive three-year vision built around Branded Checkout acceleration. The Company projected:

• Branded Checkout TPV growth accelerating from 6% to 8-10% by 2027
• Transaction margin dollar growth reaching 7-9% by 2027 (up from 5% in fiscal 2024)
• New checkout experience coverage expanding from 30% in the U.S. to over 80% globally
• Low teens-plus EPS growth, with a stated long-term ambition of 20%-plus non-GAAP EPS growth
• Pay Later usage growing more than 20% and Pay with Venmo growing more than 40%
• More than 1 point of conversion improvement delivered to merchants

Management described these targets as supported by a "rigorous plan" and reiterated them during the Q1 2025 earnings call in April, claiming the strategy was "really coming to light."

The Reality

On February 3, 2026, PayPal reported fourth quarter and full fiscal year 2025 results that contradicted these projections. The Company acknowledged worsening Branded Checkout performance, withdrew its 2027 financial targets, and disclosed that macroeconomic headwinds, competitive pressures, and operational failures had undermined the growth plan. PayPal simultaneously announced the sudden departure of CEO James Alexander Chriss.

The lawsuit contends that the salesforce was never equipped to execute the growth strategy, and that management was "too optimistic" about how easily its staff could change customer adoption patterns.

The Numbers: Promised vs. Actual

What the Lawsuit Alleges About the Gap

"Companies that make specific promises to investors about future performance have an obligation to disclose known risks to those projections. When the gap between promise and reality is this significant, investors deserve answers," stated Joseph E. Levi, Esq.

The securities action asserts that while management promoted these growth targets at public events and on earnings calls, they concealed that operational and deployment challenges were already present across all regions and that the Company's staff lacked the capacity to drive the customer adoption changes underpinning the projections.

Speak with an attorney about recovering your PayPal investment losses or call (212) 363-7500.

LEAD PLAINTIFF DEADLINE: April 20, 2026

Levi & Korsinsky, LLP is a nationally recognized shareholder rights firm. Over the past 20 years, the firm has secured hundreds of millions of dollars for aggrieved shareholders. Ranked in ISS Top 50 for seven consecutive years.

CONTACT:

SueWallSt

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@SueWallSt.com

Tel: (888) SueWallSt

Fax: (212) 363-7171

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SOURCE SueWallSt.com

Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses In PayPal To Contact Him Directly To Discuss Their Options

If you purchased or acquired securities in PayPal between February 25, 2025 and February 2, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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NEW YORK, April 16, 2026 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against PayPal Holdings, Inc. ("PayPal" or the "Company") (NASDAQ: PYPL) and reminds investors of the April 20, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.

As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose the true state of PayPal's salesforce; notably, that it was not truly equipped to execute on the Company's perceived growth potential and were "too optimistic" as to how easily and expeditiously its staff could change customer adoption. Such statements absent these material facts caused Plaintiff and other shareholders to purchase PayPal's securities at artificially inflated prices.

On February 3, 2026, PayPal announced its fourth quarter and full year 2025 financial results. Among other items, PayPal announced weaker-than-expected fourth quarter earnings and revenue. Separately, PayPal announced the departure of Alex Chriss as the Company's Chief Executive Officer.

On this news, PayPal's stock price fell $10.63 per share, or 20.31%, to close at $41.70 per share on February 3, 2026.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding PayPal's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

To learn more about the PayPal class action, go to www.faruqilaw.com/PYPL or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).

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Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

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SOURCE Faruqi & Faruqi, LLP