eBay EBAY 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.
eBay Inc. Price, Consensus and EPS Surprise
eBay Inc. price-consensus-eps-surprise-chart | eBay Inc. Quote
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 first-quarter 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.
EBAY’s Zacks Rank & Stocks to Consider
Currently, eBay carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Retail-Wholesale sector are Dutch Bros BROS, Global-E Online Ltd. GLBE and Portillo's Inc. PTLO, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dutch Bros shares have declined 9.5% year to date. Dutch Bros is set to report first-quarter 2026 results on May 6.
Global-E Online shares have fallen 18.7% year to date. Global-E is slated to report its first-quarter 2026 results on May 13.
Portillo's shares have gained 33.9% year to date. Portillo is scheduled to report its first-quarter 2026 results on May 5.
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eBay Inc. (EBAY): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).