PayPal Earnings Up in Q4, Guides Q1, FY26; Shares Plummet Pre-market: PAYL

[Para 1: The Lead] PayPal Inc. (NASDAQ: PAYL) reported a 12% increase in Q4 earnings per share to $1.35, surpassing analysts' estimates, on Tuesday. The company guided Q1 earnings to $1.40-$1.45 per share, slightly above consensus, and forecasted FY26 revenue growth of 15%-17%. However, PayPal's shares plummeted in pre-market trading, down 10%, due to concerns over higher operational costs and a challenging economic environment. [Para 2-3: Supporting details & Context] PayPal's revenue for the quarter was $7.6 billion, up 18% from the same period last year. The company attributed the growth to strong performance in its digital commerce and payments segments. PayPal's CEO, Dan Schulman, stated, "Our Q4 results reflect the resilience of our business model and the strength of our global consumer base." Despite the positive earnings, PayPal's guidance for higher costs and a cautious outlook on the economy has investors worried. The company's shares have fallen 20% since the start of the year, reflecting market concerns.