10-Q · April 29, 2026
eBay reported strong Q1 2026 results with revenue of $3.05 billion and EPS of $1.60, exceeding consensus estimates of $3.03 billion and $1.52, respectively. The company raised its revenue guidance for FY 2026 to a range…
Earnings analysis · 10-Q
EBAY earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
eBay delivered strong top-line and marketplace momentum, with revenue up 14% year over year to $3.206 billion and GMV up 15% to $23.166 billion. However, operating margin declined to 19.2%, diluted GAAP EPS fell to…
Read full summary
eBay delivered strong top-line and marketplace momentum, with revenue up 14% year over year to $3.206 billion and GMV up 15% to $23.166 billion. However, operating margin declined to 19.2%, diluted GAAP EPS fell to $1.10 from $1.34, and transaction losses increased to $122 million. Cash generation remained strong, but liquidity declined following the $1.4 billion Depop acquisition, $1.5 billion of share repurchases and increased commercial-paper borrowings. The planned 9% workforce reduction and $130 million-$150 million restructuring charge create near-term execution risk, keeping the overall assessment neutral.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.1
- Segment
- One reportable segment; marketplace revenue was $2.599 billion, up 13% year over year, and advertising revenue was $607 million, up 16% year over year.
What stood out
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Revenue growth remained strong
Revenue increased 14% year over year to $3.206 billion from $2.820 billion, and rose 2% sequentially from $3.134 billion in Q2 2026. Marketplace revenue grew 13% to $2.599 billion, while advertising revenue increased 16% to $607 million.
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GMV growth accelerated
GMV increased 15% year over year to $23.166 billion, or 16% on an FX-neutral basis to $23.226 billion. Management cited improved U.S. consumer demand, Focus Categories, C2C and Recommerce, with particularly strong performance in Collectibles, Motors, Fashion and Refurbished.
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Operating income grew despite margin pressure
Operating income increased to $616 million from $571 million year over year, although operating margin declined to 19.2% from 20.3%. Gross margin was 72.4%, down from 71.8% in the prior-year quarter but below 73.5% in Q2 2026.
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Operating cash flow remained robust
Continuing operating cash flow was $875 million in the quarter and $2.394 billion for the first nine months, compared with $900 million and $1.315 billion, respectively, in the prior-year periods.
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Capital returns continued
The company repurchased $689 million of common stock and paid $138 million in dividends during the quarter. It had $1.3 billion remaining under its repurchase authorization at September 30, 2026.
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Depop expands recommerce exposure
eBay completed the Depop acquisition on July 30, 2026 for $1.4 billion in cash. Management said the transaction strengthens its position in circular fashion and recommerce; goodwill recognized was $763 million and purchased intangible assets were $629 million.
What to watch
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GAAP EPS and tax rate weakened
Diluted GAAP EPS declined to $1.10 from $1.34 year over year and $1.21 in Q2 2026. The decline occurred despite net revenues rising 14% year over year to $3.206 billion, reflecting higher operating expenses and a $104 million tax provision versus a $25 million tax benefit in the prior-year quarter.
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Expense growth pressured margins
Operating margin fell to 19.2% from 20.3% year over year and 21.6% in Q2 2026. Total operating expenses increased 17% year over year to $1.703 billion, including a 23% increase in sales and marketing expense to $747 million.
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Fraud and buyer-protection losses rose
Transaction losses increased 15% year over year to $122 million in the quarter and 44% year to $393 million for the first nine months. Management attributed the nine-month increase partly to $73 million from unfavorable buyer and seller fraud and recovery rates and $41 million from higher volume.
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Workforce restructuring adds execution risk
The October restructuring plan calls for reducing the global workforce by approximately 9% and is expected to cost $130 million to $150 million, with most charges recognized in Q4 2026. The actions are expected to be substantially complete by the end of Q1 2027, creating execution and employee-retention risk.
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Liquidity cushion narrowed after investment
Cash and cash equivalents declined to $1.166 billion from $1.867 billion at December 31, 2025, while total debt was $6.733 billion and commercial paper outstanding was $750 million at a weighted average interest rate of 4.17%. The company also spent $1.321 billion on the Depop acquisition and $1.509 billion on share repurchases during the first nine months.
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Macro and currency volatility remain material
Management identified continuing exposure to macroeconomic, tariff, geopolitical and foreign-exchange volatility. A hypothetical 20% adverse currency movement, after considering hedges, would have reduced income before taxes by approximately $169 million as of September 30, 2026; a 1% increase in interest rates would have reduced investment fair value by $34 million.
Management's outlook
The 10-Q does not provide explicit numeric revenue or EPS guidance or quantify a change versus prior outlook. The prior 8-K disclosed Q4 2026 revenue guidance of $3.19-$3.24 billion and GAAP diluted EPS guidance of $0.82-$0.87.
Earlier filings 4
10-K · February 19, 2026
eBay presents a stable, scale-driven marketplace strategy focused on AI-enabled discovery, seller tools and trust programs, anchored by nearly $80 billion of GMV in 2025 and a global footprint of 135 million active…
10-Q · July 31, 2025
eBay reported Q2 net revenue of $2,730 million, up 6.2% year-over-year and up 5.6% sequentially, driven by a $482 million advertising lineup (up $84 million, +21.1% YoY) and $2,248 million in marketplace revenue. Gross…
10-Q · August 1, 2024
eBay posted Q2 net revenues of $2,572 million (up $32 million, +1.3% year-over-year and up $16 million, +0.6% sequentially) and diluted EPS of $0.45 (up $0.13, +40.6% year-over-year but down $0.40 sequentially).…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.