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eBay reported Q3 FY2026 revenue of $3.2 billion, above the $3.1 billion consensus. Adjusted earnings per share were $1.51, compared with the consensus of $1.43. CEO Jamie Iannone said key financial measures also exceeded the high end of eBay’s guidance; its earlier forecast for quarterly non-GAAP earnings per share was $1.36 to $1.42.
eBay’s revenue rose 13.7% from $2.8 billion a year earlier. The filing attributed the increase to growth in gross merchandise volume—the value of transactions on its marketplaces—greater first-party advertising penetration and its U.S. shipping program. CFO Peggy Alford said advertising revenue reached $607 million in the quarter, growing 16% year over year.
eBay reported diluted earnings per share of $1.10, down from $1.35 a year earlier. Gross margin rose to 72.3% from 71.8%, while operating margin declined to 19.2% from 20.2%. The filing said marketing program costs increased, primarily related to Depop and eBay Live. Free cash flow was $749.0 million, compared with $765.0 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $3.2 billion | $2.8 billion | 13.7% |
| Diluted EPS | $1.10 | $1.35 | −18.7% |
| Gross margin | 72.3% | 71.8% | 0.5 percentage points |
| Operating margin | 19.2% | 20.2% | −1.0 percentage point |
| Free cash flow | $749.0 million | $765.0 million | −2.09% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $1.51 | $1.43 | Beat by 5.59% |
| Revenue | $3.2 billion | $3.1 billion | Beat by 2.85% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Operating income growth | Q2 FY2026 | 6.00%–10.0% | 41.1% | Above the guide |
| Operating margin | Q2 FY2026 | 27.6%–28.1% | 21.6% | Below the guide |
| Revenue | Q2 FY2026 | $3.0 billion–$3.0 billion | $3.1 billion | Above the guide |
What management said on the call
CEO Jamie Iannone said focus-category merchandise volume grew 24% in Q3, led by collectibles, motors, fashion and refurbished goods. CFO Peggy Alford said U.S. merchandise volume grew 22% organically, while international volume grew nearly 4% on an organic, currency-neutral basis. Asked about the economic backdrop, Iannone said customers in Europe remained selective and Germany continued to face a more challenging spending environment.
Alford said trailing active buyers grew 4% to 147 million on a pro forma basis, including Depop and Ties. Excluding those businesses, she said global active buyers grew by over 1%, with U.S. organic growth partly offset by softer international trends.
Iannone said Depop’s U.S. merchandise volume more than doubled year over year on a pro forma basis. Asked about the businesses’ combined capabilities, he said access to eBay’s carrier rates had lowered Depop’s shipping costs and that eBay was testing Depop listings in its search results. Alford said eBay was allocating marketing and shipping investment across both platforms.
On competition in consumer-to-consumer fashion, Iannone said the U.S. market was not winner-take-all and that eBay and Depop were building on their established brands. He also said AI-assisted listing tools reduced friction for sellers; pricing guidance had been improved with new models and recommendations intended to improve conversion and sell-through.
Alford said the take rate declined as eBay Live and consumer-to-consumer transactions grew faster, the mix of transactions changed and Depop joined the portfolio. She said Depop’s shipping investments reduce its reported revenue. For Q4, she expects merchandise volume growth to outpace revenue growth, partly because of Depop’s lower take rate and the U.K. shipping program’s move to net revenue reporting. Alford said eBay had announced a workforce reduction of approximately 9% to streamline operations and create capacity for investment.
Guidance
Alford said eBay now anticipates full-year operating income growth well ahead of its initial expectations. In April, the company had forecast FY2026 non-GAAP operating income growth of 9.00% to 11.0%, excluding Depop. Alford said eBay is still budgeting for 2027 and is planning for growth in merchandise volume, revenue, non-GAAP operating income and non-GAAP earnings per share.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Tax rate, non-GAAP | FY2027 | eBay expects its non-GAAP tax rate to remain relatively stable in FY2027. | — | — |
| Revenue | FY2027 | eBay plans for healthy revenue growth in FY2027. | — | — |
| Dividend | Q4 FY2026 | $0.31 | — | New |
| Share repurchases | FY2026 | $2.0 billion | — | New |
| EPS, non-GAAP | Q4 FY2026 | $1.48–$1.53 | — | New |
| Operating income | FY2026 | eBay expects strong FY2026 operating income growth ahead of its initial expectations. | — | — |
| Revenue | Q4 FY2026 | $3.2 billion–$3.2 billion | — | New |
| EPS, non-GAAP | FY2026 | $6.25–$6.30 | — | New |
| EPS, GAAP | FY2026 | $4.26–$4.31 | — | New |
| EPS, GAAP | Q4 FY2026 | $0.82–$0.87 | — | New |
| Tax rate | FY2026 | 17.5% | — | New |
| Operating income growth, Excluding Depop | FY2026 | 9.00%–11.0% | — | New |