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EBAY Q2 Earnings Beat Estimates on Higher GMV and Ad Growth
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Key Takeaways
eBay beat Q2 earnings and revenue estimates as GMV and advertising revenues climbed year over year.
EBAY grew first-party advertising revenues 25% and expanded AI listings, eBay Live and Authenticity Guarantee.
eBay expects Q3 revenues of $3.07B-$3.12B and projects non-GAAP EPS of $1.36-$1.42.
eBay (EBAY - Free Report) reported second-quarter 2026 non-GAAP earnings of $1.6 per share, which beat the Zacks Consensus Estimate of $1.51 by 5.96%. The bottom line increased 16.8% year over year.
Net revenues of $3.13 billion increased 14.8% year over year and beat the Zacks Consensus Estimate by 3.85%. Growth was driven by continued strength in Gross Merchandise Volume (GMV) and advertising revenues. Total GMV rose 14.8% year over year to $22.4 billion, reflecting healthy marketplace activity.
EBAY's Advertising Business Drives Revenue Growth
eBay's first-party advertising products generated revenues of $570 million in the second quarter, up 25% year over year on an as-reported basis and 24% on an FX-neutral basis.
Total advertising offerings generated revenues of $596 million, representing 2.7% of Gross Merchandise Volume. The continued expansion of advertising remains an important contributor to the company's marketplace monetization strategy.
Gross Merchandise Volume reached $22.4 billion, up 15% year over year on an as-reported basis and up 14% on an FX-neutral basis, reflecting sustained buyer demand across the marketplace.
The total GMV comprised U.S. GMV of $11.69 billion, which accounted for 52.2% of total GMV and increased 24% year over year. International GMV was $10.71 billion, accounting for 47.8% of total GMV, up 6% year over year.
Active buyers totaled 136 million at the end of the second quarter, increasing 2% year over year. Active buyers excluding the Tise acquisition also stood at 136 million.
EBAY Margins Improve Despite Higher Expenses
Operating expenses increased 8.3% year over year to $1.63 billion. As a percentage of net revenues, operating expenses improved to 51.9% from 55% in the year-ago quarter.
The non-GAAP operating margin expanded 20 basis points year over year to 28.5%, reflecting disciplined cost management alongside revenue growth. GAAP operating margin improved to 21.6% from 17.6% a year ago.
eBay Strengthens Balance Sheet and Returns Capital
As of June 30, 2026, cash and cash equivalents and non-equity investments totaled $4.9 billion, down sequentially from $5.1 billion as of March 31, 2026.
Long-term debt declined sequentially to $5.14 billion at the end of the second quarter from $5.99 billion in the prior quarter, following the repayment of $750 million in senior notes. Cash flow from operating activities was $549 million in the second quarter, down sequentially from $970 million in the previous quarter. Free cash flow was $326 million, down sequentially from $898 million in the previous quarter.
During the quarter, eBay repurchased $310 million of shares, down sequentially from $500 million in the previous quarter, and paid cash dividends of $138 million compared with $139 million in the prior quarter. Approximately $2 billion remained under its share repurchase authorization as of June 30, 2026
eBay Expands Strategic Initiatives and Raises Outlook
During the quarter, eBay completed the acquisition of Depop, strengthening its position in the consumer-to-consumer fashion marketplace. The company also expanded Authenticity Guarantee across fashion and collectibles, broadened AI-powered listing capabilities and continued scaling eBay Live, where GMV increased roughly eightfold year over year across seven markets.
For the third quarter of 2026, eBay expects revenues between $3.07 billion and $3.12 billion. On an FX-neutral basis, revenue growth is projected to be 8-10%.
Gross Merchandise Volume is expected to be in the range of $22 billion to $22.4 billion, with FX-neutral GMV growth of 10%-12%.
Non-GAAP earnings are projected between $1.36 and $1.42 per share, while GAAP diluted earnings per share are expected in the range of 94-99 cents. The company also declared a third-quarter cash dividend of 31 cents per share.
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EBAY Q2 Earnings Beat Estimates on Higher GMV and Ad Growth
Key Takeaways
eBay (EBAY - Free Report) reported second-quarter 2026 non-GAAP earnings of $1.6 per share, which beat the Zacks Consensus Estimate of $1.51 by 5.96%. The bottom line increased 16.8% year over year.
Net revenues of $3.13 billion increased 14.8% year over year and beat the Zacks Consensus Estimate by 3.85%. Growth was driven by continued strength in Gross Merchandise Volume (GMV) and advertising revenues. Total GMV rose 14.8% year over year to $22.4 billion, reflecting healthy marketplace activity.
EBAY's Advertising Business Drives Revenue Growth
eBay's first-party advertising products generated revenues of $570 million in the second quarter, up 25% year over year on an as-reported basis and 24% on an FX-neutral basis.
Total advertising offerings generated revenues of $596 million, representing 2.7% of Gross Merchandise Volume. The continued expansion of advertising remains an important contributor to the company's marketplace monetization strategy.
eBay Inc. Price, Consensus and EPS Surprise
eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote
eBay Reports Higher GMV and Buyer Activity
Gross Merchandise Volume reached $22.4 billion, up 15% year over year on an as-reported basis and up 14% on an FX-neutral basis, reflecting sustained buyer demand across the marketplace.
The total GMV comprised U.S. GMV of $11.69 billion, which accounted for 52.2% of total GMV and increased 24% year over year. International GMV was $10.71 billion, accounting for 47.8% of total GMV, up 6% year over year.
Active buyers totaled 136 million at the end of the second quarter, increasing 2% year over year. Active buyers excluding the Tise acquisition also stood at 136 million.
EBAY Margins Improve Despite Higher Expenses
Operating expenses increased 8.3% year over year to $1.63 billion. As a percentage of net revenues, operating expenses improved to 51.9% from 55% in the year-ago quarter.
The non-GAAP operating margin expanded 20 basis points year over year to 28.5%, reflecting disciplined cost management alongside revenue growth. GAAP operating margin improved to 21.6% from 17.6% a year ago.
eBay Strengthens Balance Sheet and Returns Capital
As of June 30, 2026, cash and cash equivalents and non-equity investments totaled $4.9 billion, down sequentially from $5.1 billion as of March 31, 2026.
Long-term debt declined sequentially to $5.14 billion at the end of the second quarter from $5.99 billion in the prior quarter, following the repayment of $750 million in senior notes.
Cash flow from operating activities was $549 million in the second quarter, down sequentially from $970 million in the previous quarter. Free cash flow was $326 million, down sequentially from $898 million in the previous quarter.
During the quarter, eBay repurchased $310 million of shares, down sequentially from $500 million in the previous quarter, and paid cash dividends of $138 million compared with $139 million in the prior quarter. Approximately $2 billion remained under its share repurchase authorization as of June 30, 2026
eBay Expands Strategic Initiatives and Raises Outlook
During the quarter, eBay completed the acquisition of Depop, strengthening its position in the consumer-to-consumer fashion marketplace. The company also expanded Authenticity Guarantee across fashion and collectibles, broadened AI-powered listing capabilities and continued scaling eBay Live, where GMV increased roughly eightfold year over year across seven markets.
For the third quarter of 2026, eBay expects revenues between $3.07 billion and $3.12 billion. On an FX-neutral basis, revenue growth is projected to be 8-10%.
Gross Merchandise Volume is expected to be in the range of $22 billion to $22.4 billion, with FX-neutral GMV growth of 10%-12%.
Non-GAAP earnings are projected between $1.36 and $1.42 per share, while GAAP diluted earnings per share are expected in the range of 94-99 cents. The company also declared a third-quarter cash dividend of 31 cents per share.
EBAY’s Zacks Rank & Stocks to Consider
Currently, eBay carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are StubHub Holdings (STUB - Free Report) , The TJX Companies (TJX - Free Report) and Five Below (FIVE - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
StubHub Holdings is set to report second-quarter 2026 results on Aug. 12. StubHub Holdings shares have plunged 32.6% year to date.
The TJX Companies is slated to report second-quarter fiscal 2027 results on Aug. 19. Shares of The TJX Companies have returned 4.1% year to date.
Five Below is set to report second-quarter 2026 results on Aug. 26. Shares of Five Below have returned 19% year to date.