Per Bloomberg, discussions are still at an early stage and there is no certainty a deal will happen. Both companies declined to comment.

Shortly after, PayPal shares rose 6.7% to $47.02 in New York on Tuesday. That gives the company a market value of about $43.3 billion.

Stripe, which is still privately held, recently confirmed a $159 billion valuation in an employee tender offer. The company was founded by brothers Patrick Collison and John Collison. It has grown into one of the most valuable financial technology firms in the world.

Speaking this week, Patrick Collison said: “PayPal has had, obviously, a tough time over the past few years and the landscape has changed quite a bit with Apple Pay and Google Pay and everything like that. I can’t talk about any, you know, M&A hypotheticals but they’ve definitely had a tough time.”

PayPal was founded in the late 1990s and helped build early online payments. In recent years, however, it has faced slower growth.

Digital wallets such as Apple Inc.’s Apple Pay and Alphabet Inc.’s Google Pay have taken market share. The company’s fourth-quarter revenue and profit fell short of analysts’ estimates. Payment volumes have also slowed.

At the same time, PayPal is changing its leadership. Enrique Lores will become president and chief executive on March 1, replacing Alex Chriss, who was removed earlier this month. David Dorman has been appointed board chair.

Stripe, meanwhile, has continued to expand. The company processed $1.9 trillion in payment volume in 2025. It has also secured a US national bank trust charter for its stablecoin subsidiary, Bridge, showing plans to strengthen its role in regulated digital payments.

If the acquisition of PayPal by Stripe proceeds, the transaction could rank among the largest deals in the financial technology sector.

Jamie Miller, the company’s chief financial and operating officer, will fill in as interim CEO until Lores takes over.

The appointment comes on a tough day for the company as it reported fourth-quarter revenue and profits below Wall Street expectations, and consumers cut back on spending. 

PayPal also warned that full-year profits would fall, surprising investors who had expected growth. Shares tumbled nearly 18% in pre-market trading.

Lores has served as chair of PayPal’s board since July 2024. He brings more than 30 years of experience leading technology companies and guiding large-scale transformations. 

At HP, he expanded the business beyond PCs and printers into services, subscriptions and AI-enabled workplace solutions, and oversaw the separation of HP and HPE to simplify costs and drive innovation.

In a statement, Lores said:

“The payments industry is changing faster than ever, driven by new technologies, evolving regulations, an increasingly competitive landscape, and the rapid acceleration of AI that is reshaping commerce daily. 

“PayPal sits at the centre of this change, and I look forward to leading the team to accelerate the delivery of new innovations and to shape the future of digital payments and commerce.”

David W. Dorman, PayPal’s new Independent board chair, said Enrique is widely recognised as a visionary leader who prioritises customer-centric innovation with demonstrable impact. 

He added that

“His strong track record leading complex transformations and disciplined execution on a global basis will ensure PayPal maintains its leadership of the dynamic payments industry now and into the future.”

Alex Chriss, who joined PayPal in September 2023 from Intuit, spoke on his tenure:

“I am proud to have had the opportunity to lead such a great company and work with such a talented team. 

“Now is the right time to make a transition to a seasoned leader who can take the company through its next phase of transformation. I have enjoyed a great working relationship with Enrique, and I am certain he is the right person to meet that challenge.”

PayPal’s board said the company’s sustainability relies on its global scale, strong consumer and merchant networks, and operational discipline. 

Analysts note that Enrique Lores faces the challenge of restoring growth and improving execution, while maintaining the position of PayPal in the fiercely competitive payments market.

The decision comes less than a year after the company removed a further 1,000 to 2,000 positions as part of an earlier cost-cutting programme.

Shares dropped 5.5% in extended trading shortly after the update, despite the firm reporting fourth-quarter revenue of $14.64 billion, slightly ahead of market expectations.

Chief executive Enrique Lores confirmed that teams working across product development, internal operations and customer support will be affected. During a media briefing, he said: “We expect this initiative will create $1 billion in gross run rate savings over three years.”

The company expects adjusted earnings per share for fiscal 2026 to sit between $2.90 and $3.20, below the consensus forecast of $3.33. The outlook for the first quarter is also muted, with guidance of 73 to 81 cents per share.

HP is seeing high interest in advanced PCs, which accounted for more than 30% of its shipments in the fourth quarter ending 31 October. Even so, the business is preparing for higher component costs. 

Analysts at Morgan Stanley have warned that increasing prices for dynamic random access memory and NAND chips are likely to squeeze margins for major computer makers, including Dell and Acer.

Lores said the financial impact would be felt from the second half of fiscal 2026, though current inventory levels should shield the business in the short term.

He added: “We are taking a prudent approach to our guide for the second half, while at the same time implementing aggressive actions like qualifying lower cost suppliers, reducing memory configurations and taking price actions.”

Across the technology sector, companies are cutting roles while reallocating resources into new product strategies.

The report is a comprehensive study that explores the world’s relationship with work.  According to the report, only 28% of knowledge workers from various industries around the world had a healthy relationship with work, a one-point increase compared to 2023.

“Artificial intelligence usage among knowledge workers surged to 66 per cent in 2024, up from 38 per cent last year; and workers who use AI are 11-points happier with their relationship with work than their colleagues who don’t,” it said.

According to the report, at least two-thirds of knowledge workers desire personalized work experiences; and 87 per cent would be willing to forgo a portion of their salary to get it.

It declared that only 44 per cent of leaders had confidence in their human skills, adding that female business leaders were significantly more confident than their male counterparts.

The study, which surveyed 15,600 respondents across industries in 12 countries, revealed that work was still not working.

The President and Chief Executive Officer of HP Inc., Enrique Lores, said, “We know employer and employee expectations have evolved and we believe smart technology is key to meeting the needs of today’s workforce.”

Lores added that the future of work would be unlocked by using the power of AI to create solutions and experiences that drive business growth and enable individuals to achieve personal and professional fulfilment.

The HP CEO stated that in its second year, the study continued to analyze aspects of people’s relationships with work, including the role of work in their lives, their skills, abilities, tools, workspaces, and their expectations of leadership.

According to Lores, this year, WRI reveals a major universal need from knowledge workers: personalized work experiences.

“At least two-thirds of workers expressed a desire for personalized work experiences, including tailored workspaces, access to preferred technologies, and flexible working environments. These experiences are crucial for improving relationships with work, and have positive implications for both employees and businesses,” he averred.

Lores disclosed that 64 per cent of knowledge workers narrated that if work was tailored or customized to personal needs and preferences, they would be more invested in their company’s growth.

Meanwhile, at the global scale, the index highlighted little change, countries that saw an increase in their work relationship index saw slight improvement across the six key drivers of a healthy relationship with work most notably the leadership and fulfilment drivers.

HP Inc. is a global technology leader and creator of solutions that enable people to bring their ideas to life and connect to the things that matter most.