Investing.com -- HP Inc. (NYSE: HPQ) stock fell 6% Tuesday after the company announced that CEO Enrique Lores has stepped down to pursue another opportunity, with PayPal Holdings Inc. (NASDAQ: PYPL) simultaneously revealing his appointment as their next President and CEO.

According to Semafor, HP’s board was blindsided by Lores’ departure, forcing them to quickly launch a search for his replacement. The company has appointed board member Bruce Broussard as interim CEO while it conducts an executive search. Broussard has served on HP’s board since 2021 and was previously CEO of Humana from 2013 to 2024.

Lores, who had been with HP for more than 20 years and served as CEO since November 2019, will assume his new role at PayPal effective March 1, 2026. Despite the leadership change, HP reaffirmed its financial outlook for the first quarter and fiscal year 2026, projecting earnings per share of $0.73-0.81 for the January quarter and $2.90-3.20 for FY26.

Evercore ISI analyst Amit Daryanani commented on the unexpected transition: "The executive change comes as a surprise this morning, especially given the challenging memory environment that HPQ continues to navigate."