eBay (EBAY) Up 8.4% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for eBay (EBAY). Shares have added about 8.4% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is eBay due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

eBay Q1 Earnings & Revenues Surpass Estimates, Both Increase Y/Y

eBay Inc. reported first-quarter 2026 non-GAAP earnings of $1.66 per share, which beat the Zacks Consensus Estimate by 5.06%. The bottom line increased 21.2% year over year.

Net revenues of $3.09 billion beat the Zacks Consensus Estimate by 1.98%. The figure increased 19% year over year on a reported basis and 17% on an FX-neutral basis.

eBay's first-party advertising products generated revenues of $555 million in the reported quarter, up 33% on an as-reported basis and 28% on an FX-neutral basis.

Total advertising offerings yielded $581 million in revenues, representing 2.6% of gross merchandise volume (GMV).

EBAY's active buyer base was 136 million at the end of the first quarter, increasing 1% year over year. Excluding the Tise acquisition, active buyers stood at 135 million.

GMV Details for EBAY

Gross Merchandise Volume reached $22.2 billion, reflecting an 18% year-over-year increase on a reported basis and 14% on an FX-neutral basis. This indicates strong buyer and seller engagement across the platform, reinforcing eBay’s marketplace strength.

The total GMV is categorized into two parts. U.S. GMV totaled $11.5 billion, accounting for 51.8% of total GMV. The figure rose 26.9% year over year. International GMV was $10.7 billion, accounting for 48.2% of total GMV. The figure increased 10.4% year over year.

EBAY's Q1 Operating Details

Operating expenses of $1.68 billion grew 31.2% year over year. As a percentage of net revenues, the figure expanded to 54.3% from 49.4% in the year-ago quarter.

The non-GAAP operating margin was 29.4% in the first quarter, contracting 20 basis points (bps) year over year. The decline was modest, indicating stable profitability despite higher investments.

EBAY's Balance Sheet & Cash Flow

As of March 31, 2026, cash and cash equivalents and short-term investments were $3.86 billion, up from $2.92 billion as of Dec. 31, 2025.

Long-term debt decreased sequentially to $5.99 billion at the end of the first quarter of 2026 compared with $6.0 billion in the prior quarter.

Cash flow from operating activities was $970 million in the first quarter, up from $595 million in the previous quarter, reflecting a sequential improvement in cash generation.

Free cash flow increased sequentially to $898 million in the first quarter compared with $478 million in the previous quarter.

The company repurchased $500 million worth of shares and paid out cash dividends of $139 million in the reported quarter. eBay had approximately $2.3 billion remaining under its buyback authorization as of March 31, 2026.

eBay’s Strategic Initiatives and Outlook

During the quarter, eBay announced an agreement to acquire Depop, expanding its presence in the consumer-to-consumer fashion marketplace. The move is expected to strengthen engagement with younger users.

For the second quarter of 2026, eBay expects revenues in the range of $2.97 billion to $3.03 billion. On an FX-neutral basis, revenue growth is anticipated to be 8%-10%.

GMV for the second quarter is likely to be in the range of $21.3 billion to $21.7 billion. On an FX-neutral basis, GMV growth is anticipated to be 8%-10%.

Non-GAAP earnings per share are anticipated to be between $1.46 and $1.51. GAAP diluted EPS from continuing operations is expected in the range of $1.09 to $1.14.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

VGM Scores

Currently, eBay has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

eBay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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