eBay Earnings Beat on Luxury, AI Growth

eBay earnings, disclosed in a press release on Aug. 5, 2026, showed second-quarter results topped estimates, driven by luxury, collectibles, and AI tools. The company guided third-quarter revenue above analysts’ forecasts while offering mixed EPS guidance.

Quarter Results and Outlook

eBay Inc. (Nasdaq: EBAY) reported second-quarter 2026 results for the period ended June 30. The company posted net revenue of $3.1 billion, up 15.0% year over year on an as-reported basis and 14.0% on a foreign-exchange-neutral basis. Gross merchandise volume (GMV) rose 15.0% as reported to $22.4 billion, also 14.0% FX-neutral. Both figures exceeded prior guidance ranges, supporting stronger marketplace monetization.

GAAP net income from continuing operations was $552 million, with diluted EPS of $1.21. On a non-GAAP basis, net income was $727 million and diluted EPS was $1.60. Gross profit reached $2.3 billion. GAAP operating margin improved to 21.6%, while non-GAAP operating margin was 28.5%. Non-GAAP operating income increased 16.0% to $893 million.

For the third quarter, eBay guided revenue between $3.07 billion and $3.12 billion, above analysts’ average estimate of $2.97 billion. Non-GAAP diluted EPS guidance ranged from $1.36 to $1.42.

Growth Drivers and Capital Returns

Management credited the quarter’s momentum to its “focus categories”: authenticated luxury, collectibles, auto parts, and refurbished electronics, alongside strength in consumer-to-consumer (C2C) and recommerce activity. These segments now represent about 70.0% of total GMV. U.S. GMV and revenue growth outpaced international markets.

Advertising revenue reached $596 million, with first-party advertising up 25.0% year over year. AI-driven tools boosted engagement: Magical Listing increased listing creation rates by more than 50.0%, generating roughly 500 million AI-assisted listings. Card scanning surpassed 30 million cumulative scans, and Authentic Search beta users showed about 50.0% higher engagement with double-digit increases in purchasing activity.

Live commerce and event selling also contributed. eBay Live’s annual GMV run rate was more than eight times higher than a year earlier. The “48 Hours of Drops” event set a new daily GMV record, running roughly 60.0% above prior Black Friday peaks.

Operating cash flow from continuing operations was $549 million, with free cash flow of $326 million. The company returned $448 million to shareholders in the quarter through $310 million in share repurchases and $138 million in dividends. Management indicated plans for about $2.0 billion in share repurchases for full-year 2026, excluding Depop.

Jamie Iannone, eBay’s chief executive, said, “eBay's second quarter delivered meaningful, broad-based momentum driven by continued innovation and focused execution against our strategic roadmap.”