eBay (NASDAQ:EBAY – Get Free Report) released its quarterly earnings results on Wednesday. The e-commerce company reported $1.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.50 by $0.10, FiscalAI reports. eBay had a return on equity of 46.11% and a net margin of 17.58%.The firm had revenue of $3.13 billion for the quarter, compared to the consensus estimate of $3.02 billion. During the same period last year, the business posted $1.37 EPS. The company’s revenue for the quarter was up 14.8% on a year-over-year basis. eBay updated its Q3 2026 guidance to 1.360-1.420 EPS.
Here are the key takeaways from eBay’s conference call:
- Q2 results exceeded expectations: GMV and revenue each grew 14% to $22.4 billion and $3.13 billion, respectively, while non-GAAP operating income rose 16% and EPS increased 17% to $1.60. eBay also returned nearly $450 million to shareholders through buybacks and dividends.
- Strategic growth areas continued to outperform, with focused-category GMV up 26% and C2C and recommerce each growing more than 20%; together, these areas represented over 70% of total GMV. U.S. GMV rose 24%, while active buyers increased nearly 2% globally and 6% in the U.S.
- eBay highlighted rapid growth in emerging businesses, including eBay Live GMV, which increased roughly eightfold year over year, alongside expanding vehicles, shipping, and AI capabilities. Management said Live is gaining share in all seven operating markets and that AI-powered listing tools are increasing seller activity and supply.
- The completed $1.4 billion Depop acquisition expands eBay’s reach with younger consumers and strengthens its C2C and recommerce offerings, but planned marketing and shipping investments are expected to weigh on near-term profitability. Depop is projected to be a roughly two-percentage-point headwind to full-year operating-income growth and approximately a 2.5-point drag on EPS growth, with accretion expected in 2028.
- Third-quarter guidance implies a slowdown from Q2, with organic GMV growth of 7%–9% and non-GAAP operating-income and EPS growth of only 1%–5%. Management attributed the moderation primarily to tougher comparisons, including lapping prior Klarna benefits, marketing efficiencies, strong Pokémon growth, and bullion demand.
eBay Stock Performance
EBAY traded up $1.54 during midday trading on Wednesday, reaching $111.15. The company had a trading volume of 7,246,142 shares, compared to its average volume of 5,025,583. The company has a quick ratio of 1.22, a current ratio of 1.22 and a debt-to-equity ratio of 1.36. The business has a 50-day moving average of $111.10 and a two-hundred day moving average of $101.39. The company has a market cap of $49.35 billion, a P/E ratio of 25.20, a P/E/G ratio of 2.35 and a beta of 1.37. eBay has a 1 year low of $78.03 and a 1 year high of $119.31.
Key Headlines Impacting eBay
- Positive Sentiment: eBay reported second-quarter revenue of $3.13 billion, up 15% year over year, and gross merchandise volume (GMV) of $22.4 billion, up 15%. Non-GAAP EPS of $1.60 exceeded the $1.50 consensus estimate, while revenue also topped expectations of $3.02 billion. eBay Inc. Reports Second Quarter 2026 Results
- Positive Sentiment: The company lifted its 2026 GMV growth outlook to 11.5%-12.5% as the Depop acquisition closed, signaling confidence in continued marketplace momentum and the contribution from the fashion-resale platform. eBay Lifts Outlook as Depop Acquisition Closes, Revenue Rises
- Positive Sentiment: Third-quarter guidance calls for adjusted EPS of $1.36-$1.42, centered near analyst expectations, and revenue of approximately $3.1 billion, above the roughly $3.0 billion consensus estimate. eBay also returned $448 million to shareholders during the quarter through buybacks and dividends.
- Neutral Sentiment: Investor attention remains on eBay’s potential role in GameStop’s strategic plans, including reports that GameStop is using a stock swap to retire $1.4 billion of debt while pursuing an eBay bid. The earnings coverage did not indicate that a transaction had been agreed.
- Negative Sentiment: Analyst sentiment was mixed before the earnings release: Wells Fargo and Citizens JMP downgraded eBay to more cautious ratings, citing valuation and potential downside risks. These downgrades may limit further upside despite the earnings beat. Analyst Downgrade
Analysts Set New Price Targets
A number of research firms have issued reports on EBAY. Cantor Fitzgerald boosted their price target on eBay from $100.00 to $110.00 and gave the company a “neutral” rating in a research note on Thursday, April 30th. Sanford C. Bernstein reiterated a “market perform” rating and issued a $115.00 price objective on shares of eBay in a research note on Monday. Bank of America raised their price objective on shares of eBay from $102.00 to $110.00 and gave the stock a “neutral” rating in a report on Tuesday, April 21st. Weiss Ratings restated a “buy (b)” rating on shares of eBay in a research report on Friday, June 12th. Finally, Daiwa Securities Group upped their target price on shares of eBay from $90.00 to $114.00 in a report on Monday, May 11th. Thirteen equities research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $110.58.
Read Our Latest Stock Analysis on eBay
Insider Transactions at eBay
In other news, SVP Jordan Douglas Bradle Sweetnam sold 1,010 shares of eBay stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $115.61, for a total transaction of $116,766.10. Following the transaction, the senior vice president directly owned 32,146 shares of the company’s stock, valued at $3,716,399.06. The trade was a 3.05% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jamie Iannone sold 11,110 shares of the business’s stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $113.33, for a total value of $1,259,096.30. Following the transaction, the chief executive officer owned 275,431 shares of the company’s stock, valued at approximately $31,214,595.23. This trade represents a 3.88% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 76,012 shares of company stock valued at $8,747,852 over the last quarter. 0.67% of the stock is currently owned by company insiders.
Hedge Funds Weigh In On eBay
A number of hedge funds have recently modified their holdings of EBAY. Invesco Ltd. lifted its stake in shares of eBay by 8.3% during the 4th quarter. Invesco Ltd. now owns 9,020,923 shares of the e-commerce company’s stock valued at $785,722,000 after buying an additional 692,805 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in eBay by 32.0% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,891,398 shares of the e-commerce company’s stock worth $262,973,000 after buying an additional 701,530 shares during the period. Nuveen LLC increased its stake in eBay by 1.9% in the 4th quarter. Nuveen LLC now owns 2,887,009 shares of the e-commerce company’s stock worth $251,458,000 after buying an additional 52,521 shares in the last quarter. Victory Capital Management Inc. increased its stake in eBay by 37.5% in the 4th quarter. Victory Capital Management Inc. now owns 2,070,031 shares of the e-commerce company’s stock worth $180,300,000 after buying an additional 564,832 shares in the last quarter. Finally, Alyeska Investment Group L.P. raised its holdings in eBay by 214.6% during the fourth quarter. Alyeska Investment Group L.P. now owns 1,858,383 shares of the e-commerce company’s stock valued at $161,865,000 after acquiring an additional 1,267,601 shares during the period. 87.48% of the stock is currently owned by institutional investors.
About eBay
eBay Inc is a global e-commerce company that operates an online marketplace connecting individual consumers and businesses for the sale and purchase of new, used and collectible goods. Founded in 1995 by Pierre Omidyar and headquartered in San Jose, California, eBay grew from its early auction-style site into a diversified platform offering both auction-format listings and fixed-price “Buy It Now” transactions. The company completed an initial public offering in the late 1990s and has since evolved its platform and services to support a broad range of product categories and buyer preferences.
The company’s core business centers on its marketplace platform, which provides listing, search and transaction capabilities for millions of items across consumer goods, electronics, fashion, collectibles and more.
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