eBay’s second quarter results were met with a negative market reaction despite surpassing Wall Street expectations for both revenue and non-GAAP profit. Management pointed to strong execution in focused categories, such as collectibles and fashion, as well as significant growth in the consumer-to-consumer (C2C) and recommerce segments. CEO Jamie Iannone highlighted that over 70% of gross merchandise volume (GMV) came from these strategic priorities, with each growing more than 20% year-over-year. He emphasized the contribution of product enhancements like AI-powered selling tools and expanded Authenticity Guarantee programs in driving engagement and marketplace activity.
Is now the time to buy EBAY? Find out in our full research report (it’s free for active Edge members).
eBay (EBAY) Q2 CY2026 Highlights:
- Revenue: $3.13 billion vs analyst estimates of $3.02 billion (14.8% year-on-year growth, 3.7% beat)
- Adjusted EPS: $1.60 vs analyst estimates of $1.51 (6.2% beat)
- Adjusted Operating Income: $893 million vs analyst estimates of $838.7 million (28.5% margin, 6.5% beat)
- Revenue Guidance for Q3 CY2026 is $3.10 billion at the midpoint, above analyst estimates of $2.97 billion
- Adjusted EPS guidance for Q3 CY2026 is $1.39 at the midpoint, below analyst estimates of $1.44
- Operating Margin: 21.6%, up from 17.5% in the same quarter last year
- Active Buyers: 136 million, up 2 million year on year
- Market Capitalization: $47.17 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From eBay’s Q2 Earnings Call
- Colin Sebastian (Baird) asked about eBay Live’s broader impact. CEO Jamie Iannone said eBay Live buyers spend 70% more than non-Live buyers, and AI tools are driving increased seller engagement and listing velocity.
- Michael Morton (MoffettNathanson) pressed on C2C competition and Motors segment reporting. Iannone described a large, underpenetrated U.S. C2C market, while CFO Peggy Alford clarified that Motors GMV includes both vehicles and parts, with Caramel aiding growth.
- Kenneth Gawrelski (Wells Fargo) questioned marketing strategy for Depop in the U.S. Iannone highlighted Depop’s buyer fee model and unique reach among younger consumers, while Alford noted that investments are funded largely by reallocating existing eBay marketing spend.
- Ross Sandler (Barclays) asked about the durability of GMV growth. Alford explained that while some lapping effects from prior year boosts will occur, most growth is considered durable, supported by strategic priorities.
- Deepak Mathivanan (Cantor Fitzgerald) inquired about eBay Live’s seller penetration and marketing efficiencies. Iannone emphasized that moving eBay Live to self-service should increase adoption, and Alford stressed ongoing operating efficiency and synergy capture from Depop.
Catalysts in Upcoming Quarters
Our analysts will be monitoring (1) the pace and profitability of Depop’s integration and growth in the U.S. market, (2) adoption and engagement levels on eBay Live and the impact of AI-powered tools on seller and buyer activity, and (3) continued momentum in C2C and focused categories amid competitive pressures. Platform innovation and evolving buyer trends will also serve as critical markers for sustained growth.
eBay currently trades at $106.31, down from $111.15 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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