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EBAY Q3 Earnings & Revenues Beat Estimates, Both Increase Y/Y
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Key Takeaways
eBay's Q3 2026 non-GAAP EPS rose 11.9% to $1.51, while revenues gained 13.7% to $3.21B; both beat estimates.
eBay's GMV rose 15.2% to $23.17B, led by a 27% U.S. gain, while first-party ad revenues jumped 16% to $575M.
eBay's non-GAAP operating margin fell 70 basis points to 26.3%, while Q4 revenues are seen at $3.19B-$3.24B.
eBay Inc. (EBAY - Free Report) reported third-quarter 2026 non-GAAP earnings of $1.51 per share, increasing 11.9% year over year. The bottom line topped the Zacks Consensus Estimate by 5.59%.
Net revenues of $3.21 billion rose 13.7% year over year, beating the Zacks Consensus Estimate by 2.85%. Broad-based strength in focus categories and consumer-to-consumer activity lifted gross merchandise volume (GMV) 15.2% to $23.17 billion.
EBAY's Advertising Revenues Maintain Momentum
First-party advertising products generated $575 million in revenues, up 16% year over year on both reported and foreign exchange-neutral bases. Promoted Listings and first-party display ads remain central to eBay's efforts to monetize marketplace traffic.
Total advertising revenues reached $607 million, up from $525 million in the year-ago quarter. Third-party advertising increased to $28 million from $22 million, while off-platform ad revenues declined to $4 million from $7 million. Advertising penetration was 2.7% of GMV, excluding Depop.
U.S. GMV increased 27% year over year to $12.55 billion. International GMV rose 4% to $10.62 billion. On an FX-neutral basis, consolidated GMV grew 16%, with U.S. volumes leading the expansion.
Active buyers climbed 10% to 147 million, including the acquired Depop business. Excluding Depop and Tise, active buyers totaled 136 million. The company's take rate, or revenues as a percentage of GMV, eased to 13.8% from 14% a year earlier.
EBAY Expands Recommerce, Live and Depop
Focus Categories GMV increased 24% year over year on an FX-neutral basis, driven by collectibles, eBay Motors, fashion and refurbished items. The combined strategic priorities of focus categories, consumer-to-consumer commerce and recommerce accounted for 72% of GMV, excluding Depop, and grew approximately 20% on an FX-neutral basis.
eBay Live delivered another record quarter, with GMV growth well into triple digits across seven markets. Depop, acquired on July 30, 2026, more than doubled U.S. GMV, monthly active users and sold items year over year on a pro forma basis. eBay also expanded its AI-powered Magical Listing tools across six major markets.
eBay Margins Narrow as Expenses Rise
GAAP operating expenses increased 17% year over year to $1.70 billion from $1.46 billion. Sales and marketing spending rose to $747 million from $606 million as eBay invested in Depop and strategic priorities. Product development expenses increased to $517 million from $455 million.
Non-GAAP operating income rose 10.9% to $843 million from $760 million, but the non-GAAP operating margin fell 70 basis points to 26.3%. The GAAP operating margin declined to 19.2% from 20.3%.
Non-GAAP net income rose 8.2% to $685 million, while diluted shares fell to 453 million from 467 million. GAAP earnings declined to $1.11 per share from $1.27 as the effective tax rate moved to 17.1% from negative 4.3%.
EBAY’s Balance Sheet & Cash Flow
As of Sept. 30, 2026, cash and cash equivalents and non-equity investments totaled $3.3 billion, down sequentially from $4.9 billion as of June 30, 2026.
Long-term debt declined marginally to $5.13 billion at the end of the third quarter from $5.14 billion in the prior quarter.
eBay repurchased $689 million in shares and paid $138 million in dividends, returning $827 million to its stockholders. About $1.3 billion remained under its buyback authorization at quarter-end. Cash and non-equity investments fell sequentially to $3.35 billion from $4.85 billion, while total debt was $6.73 billion.
In the reported quarter, cash flow from continuing operations was $875 million, down from $900 million in the prior-year quarter. Free cash flow declined to $749 million from $803 million, as purchases of property and equipment rose to $126 million from $97 million.
eBay Projects Continued Growth for Q4 and 2026
For the fourth quarter of 2026, eBay expects revenues of $3.19-$3.24 billion and GMV of $23.70-$24.10 billion. Non-GAAP earnings are projected at $1.48-$1.53 per share, with non-GAAP operating income between $820 million and $850 million.
Depop is expected to contribute roughly four percentage points to FX-neutral GMV growth. Management expects GMV to outpace revenue growth partly because of Depop's mix and U.K. managed-shipping accounting.
For full-year 2026, projected revenues are $12.62-$12.67 billion and GMV is $91.50-$91.90 billion. Non-GAAP earnings are forecast at $6.25-$6.30 per share, with non-GAAP operating income projected at $3.46-$3.49 billion. Management targets roughly $2 billion of share repurchases for the year.
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EBAY Q3 Earnings & Revenues Beat Estimates, Both Increase Y/Y
Key Takeaways
eBay Inc. (EBAY - Free Report) reported third-quarter 2026 non-GAAP earnings of $1.51 per share, increasing 11.9% year over year. The bottom line topped the Zacks Consensus Estimate by 5.59%.
Net revenues of $3.21 billion rose 13.7% year over year, beating the Zacks Consensus Estimate by 2.85%. Broad-based strength in focus categories and consumer-to-consumer activity lifted gross merchandise volume (GMV) 15.2% to $23.17 billion.
EBAY's Advertising Revenues Maintain Momentum
First-party advertising products generated $575 million in revenues, up 16% year over year on both reported and foreign exchange-neutral bases. Promoted Listings and first-party display ads remain central to eBay's efforts to monetize marketplace traffic.
Total advertising revenues reached $607 million, up from $525 million in the year-ago quarter. Third-party advertising increased to $28 million from $22 million, while off-platform ad revenues declined to $4 million from $7 million. Advertising penetration was 2.7% of GMV, excluding Depop.
eBay Inc. Price, Consensus and EPS Surprise
eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote
eBay Posts Regional GMV and Buyer Gains in Q3
U.S. GMV increased 27% year over year to $12.55 billion. International GMV rose 4% to $10.62 billion. On an FX-neutral basis, consolidated GMV grew 16%, with U.S. volumes leading the expansion.
Active buyers climbed 10% to 147 million, including the acquired Depop business. Excluding Depop and Tise, active buyers totaled 136 million. The company's take rate, or revenues as a percentage of GMV, eased to 13.8% from 14% a year earlier.
EBAY Expands Recommerce, Live and Depop
Focus Categories GMV increased 24% year over year on an FX-neutral basis, driven by collectibles, eBay Motors, fashion and refurbished items. The combined strategic priorities of focus categories, consumer-to-consumer commerce and recommerce accounted for 72% of GMV, excluding Depop, and grew approximately 20% on an FX-neutral basis.
eBay Live delivered another record quarter, with GMV growth well into triple digits across seven markets. Depop, acquired on July 30, 2026, more than doubled U.S. GMV, monthly active users and sold items year over year on a pro forma basis. eBay also expanded its AI-powered Magical Listing tools across six major markets.
eBay Margins Narrow as Expenses Rise
GAAP operating expenses increased 17% year over year to $1.70 billion from $1.46 billion. Sales and marketing spending rose to $747 million from $606 million as eBay invested in Depop and strategic priorities. Product development expenses increased to $517 million from $455 million.
Non-GAAP operating income rose 10.9% to $843 million from $760 million, but the non-GAAP operating margin fell 70 basis points to 26.3%. The GAAP operating margin declined to 19.2% from 20.3%.
Non-GAAP net income rose 8.2% to $685 million, while diluted shares fell to 453 million from 467 million. GAAP earnings declined to $1.11 per share from $1.27 as the effective tax rate moved to 17.1% from negative 4.3%.
EBAY’s Balance Sheet & Cash Flow
As of Sept. 30, 2026, cash and cash equivalents and non-equity investments totaled $3.3 billion, down sequentially from $4.9 billion as of June 30, 2026.
Long-term debt declined marginally to $5.13 billion at the end of the third quarter from $5.14 billion in the prior quarter.
eBay repurchased $689 million in shares and paid $138 million in dividends, returning $827 million to its stockholders. About $1.3 billion remained under its buyback authorization at quarter-end. Cash and non-equity investments fell sequentially to $3.35 billion from $4.85 billion, while total debt was $6.73 billion.
In the reported quarter, cash flow from continuing operations was $875 million, down from $900 million in the prior-year quarter. Free cash flow declined to $749 million from $803 million, as purchases of property and equipment rose to $126 million from $97 million.
eBay Projects Continued Growth for Q4 and 2026
For the fourth quarter of 2026, eBay expects revenues of $3.19-$3.24 billion and GMV of $23.70-$24.10 billion. Non-GAAP earnings are projected at $1.48-$1.53 per share, with non-GAAP operating income between $820 million and $850 million.
Depop is expected to contribute roughly four percentage points to FX-neutral GMV growth. Management expects GMV to outpace revenue growth partly because of Depop's mix and U.K. managed-shipping accounting.
For full-year 2026, projected revenues are $12.62-$12.67 billion and GMV is $91.50-$91.90 billion. Non-GAAP earnings are forecast at $6.25-$6.30 per share, with non-GAAP operating income projected at $3.46-$3.49 billion. Management targets roughly $2 billion of share repurchases for the year.
EBAY’s Zacks Rank & Other Stocks to Consider
Currently, eBay carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Retail-Wholesale sector are Arcos Dorados (ARCO - Free Report) , Best Buy Co., Inc. (BBY - Free Report) and FIGS, Inc. (FIGS - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arcos Dorados’ shares have declined 5.7% year to date. ARCO is set to report its third-quarter 2026 results on Nov. 12.
Best Buy’s shares have gained 44.9% year to date. BBY is slated to report its third-quarter fiscal 2027 results on Nov. 24.
FIGS’ shares have surged 81.9% year to date. FIGS is slated to report its third-quarter 2026 results on Nov. 5.