eBay (NASDAQ:EBAY) Posts Earnings Results, Beats Expectations By $0.10 EPS

eBay (NASDAQ:EBAY) released its quarterly earnings data on Wednesday. The e-commerce company reported $1.51 EPS for the quarter, beating analysts’ consensus estimates of $1.41 by $0.10, FiscalAI reports. The business had revenue of $3.21 billion during the quarter, compared to analysts’ expectations of $3.12 billion. eBay had a net margin of 16.84% and a return on equity of 48.79%. The firm’s quarterly revenue was up 13.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.36 EPS.

Here are the key takeaways from eBay’s conference call:

• Q3 results exceeded expectations: GMV rose 13% organically to $23.2 billion, revenue increased 11% to $3.21 billion, and non-GAAP EPS grew nearly 12% to $1.51. eBay returned nearly $830 million to shareholders through buybacks and dividends.
• Growth was broad-based, with focus categories up 24%, global C2C GMV up more than 20%, and eBay Live expanding at a triple-digit rate. Collectibles, Motors, fashion, refurbished goods, and stronger advertising all contributed to momentum.
• Depop materially accelerated after joining eBay, with U.S. GMV, monthly active users, and sold items more than doubling year over year on a pro forma basis. Management highlighted improving buyer and seller cohorts, stronger repeat activity, and potential synergies in shipping, traffic, AI, payments, and search.
• eBay guided Q4 consolidated GMV growth of 12%–14% and revenue growth of 7%–9% on an FX-neutral basis, while noting that GMV will outpace revenue because of Depop’s lower take rate, shipping accounting changes, and category mix. Management expects continued strong Depop growth but tougher comparisons in trading cards.
• eBay plans to reduce its workforce by approximately 9% to streamline operations and fund higher-priority growth initiatives. Although management expects full-year operating income growth above initial expectations, Q4 non-GAAP operating income growth is forecast at a slower 6%–10%.

eBay Stock Up 2.7%

eBay stock opened at $121.19 on Friday. The company has a current ratio of 1.02, a quick ratio of 1.02 and a debt-to-equity ratio of 1.10. eBay has a 1-year low of $78.03 and a 1-year high of $124.59. The company has a fifty day simple moving average of $110.49 and a 200 day simple moving average of $103.72. The company has a market cap of $53.93 billion, a P/E ratio of 26.46, a price-to-earnings-growth ratio of 2.95 and a beta of 1.33.

eBay Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 18th. Investors of record on Friday, December 4th will be issued a dividend of $0.31 per share. The ex-dividend date is Friday, December 4th. This represents a $1.24 annualized dividend and a yield of 1.0%. eBay’s dividend payout ratio is presently 27.07%.

Insider Activity

In other news, SVP Jordan Sweetnam sold 1,014 shares of the stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $101.39, for a total transaction of $102,809.46. Following the completion of the transaction, the senior vice president directly owned 35,546 shares in the company, valued at $3,604,008.94. This represents a 2.77% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Jamie Iannone sold 11,110 shares of the firm’s stock in a transaction dated Monday, October 5th. The shares were sold at an average price of $107.08, for a total value of $1,189,658.80. Following the completion of the transaction, the chief executive officer owned 226,269 shares of the company’s stock, valued at $24,228,884.52. The trade was a 4.68% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 34,344 shares of company stock worth $3,635,567 over the last three months. Insiders own 0.67% of the company’s stock.

Key Stories Impacting eBay

Here are the key news stories impacting eBay this week:

• Positive Sentiment: Strong Q3 results: Revenue increased 14% year over year to $3.21 billion, while non-GAAP EPS of $1.51 exceeded consensus estimates near $1.41. Gross merchandise volume rose 15% to $23.2 billion, supported by broad marketplace growth, advertising and collectibles. eBay Q3 results
• Positive Sentiment: Improved outlook and capital returns: Management projected fourth-quarter adjusted EPS of $1.48–$1.53 and raised its full-year 2026 adjusted EPS outlook to $6.25–$6.30. eBay returned $827 million to shareholders in Q3, including $689 million in buybacks and $138 million in dividends. eBay outlook
• Positive Sentiment: Growth initiatives are gaining traction: Depop’s U.S. merchandise volume more than doubled year over year, fashion sales across eBay and Depop reached $9 billion over the past year, and eBay Live continued to expand. Analysts described the turnaround as established, though execution remains important. eBay Depop growth
• Positive Sentiment: Analyst targets moved higher: Oppenheimer raised its target to $140, Rosenblatt to $137, and JPMorgan to $125. Citi maintained a Buy rating with a $130 target, reinforcing the improving sentiment after earnings. Analyst target increases
• Neutral Sentiment: eBay declared a quarterly dividend of $0.31 per share, equivalent to a roughly 1% annualized yield. Its chief commercial officer was also appointed to iHerb’s board, a potentially useful industry connection but not a material near-term earnings driver. eBay dividend announcement
• Negative Sentiment: Higher spending narrowed margins, creating a risk that investment in growth could limit near-term profitability. Wells Fargo upgraded eBay only to Equal Weight with a $106 target, below the current trading level, highlighting valuation concerns after the rally. eBay margin and earnings analysis

Analysts Set New Price Targets

Several equities research analysts have issued reports on EBAY shares. BTIG Research initiated coverage on eBay in a report on Thursday. They issued a “buy” rating for the company. Rosenblatt Securities lifted their price objective on eBay from $132.00 to $137.00 and gave the company a “buy” rating in a report on Thursday. Needham & Company LLC boosted their price objective on eBay from $135.00 to $140.00 and gave the company a “buy” rating in a research report on Thursday. Wells Fargo & Company raised eBay from an “underweight” rating to an “equal weight” rating and increased their target price for the stock from $91.00 to $106.00 in a research note on Thursday. Finally, Jefferies Financial Group dropped their target price on shares of eBay from $80.00 to $75.00 and set an “underperform” rating on the stock in a report on Monday, September 21st. Fifteen investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $122.45.

About eBay

eBay Inc operates a global online marketplace that connects buyers and sellers. Through its platform, individuals, small businesses and larger retailers can list and purchase new, used and refurbished merchandise across categories such as electronics, apparel, collectibles, automotive parts and accessories, home goods and industrial products. Transactions may take place through auctions or fixed-price listings, with payments, shipping and other seller and buyer services supporting the marketplace experience.

Founded in 1995 as AuctionWeb by Pierre Omidyar, eBay has grown from an online auction site into a broad e-commerce platform.