$EBAY · EBAY INC
eBay filed its Q3 FY2026 10-Q, reporting net revenues of $3.206B (+13.7% YoY), with Marketplace revenue of $2.599B and Advertising revenue of $607M. GAAP diluted EPS from continuing operations was $1.11 on net income of $497M, down from $628M in Q3 2025 due to a swing in income tax provision from a $25M benefit to a $104M expense. The company repurchased $695M in stock during the quarter and declared a $0.31 per share dividend.
- Q3 net revenues rose 13.7% YoY to $3.206B, with Marketplace at $2.599B and Advertising at $607M.
- GAAP diluted EPS from continuing operations was $1.11; net income was $497M vs. $628M in Q3 2025.
- Gross margin held at 72.3%; operating margin was 19.2% on $616M income from operations.
- Nine-month operating cash flow benefited from $1.559B net income and $511M in stock-based compensation.
- Share count declined: diluted shares fell to 453M from 467M a year ago, reflecting ongoing buybacks.
Extended-hours trading shows EBAY at $122.36, up 0.97% from the regular close of $121.19. The modest after-hours gain suggests the market views the 13.7% revenue growth and advertising momentum as largely in line with or slightly above expectations, though the YoY net income decline tempers enthusiasm.
eBay's accelerating advertising business — now nearly one-fifth of total revenue — signals a structural margin tailwind that could re-rate the stock beyond traditional marketplace multiples.
eBay's 13.7% revenue growth and 15.6% advertising growth outpace many legacy e-commerce peers, reflecting successful monetization of its marketplace via Promoted Listings. The 72.3% gross margin remains strong versus marketplace competitors.
The filing flags risks around global trade policy changes and tariffs impacting cross-border trade, which is material given international markets generated ~43% of Q3 net revenues. Foreign currency translation losses and unrealized investment losses also pressured comprehensive income.