eBay Q3 FY2026: revenue up 14% to $3.21 billion, non-GAAP EPS $1.51 beats
eBay's third quarter beat where it counts: revenue rose 14.0% to $3.21 billion, non-GAAP EPS came in at $1.51 against a $1.44 consensus, and free cash flow was $749 million. The caveats sit in margins, which narrowed, and in a fourth-quarter guide whose midpoint barely exceeds the quarter just reported. Read the scorecard for growth, then the margin and guidance notes for what that growth cost.
1 · Expected vs. Actual
Free preview belowNon-GAAP EPS of $1.51 beat the $1.44 consensus and rose 12% from $1.35, on non-GAAP net income of $685 million. GAAP EPS of $1.10 looks worse than last year's $1.34 mainly because the tax line flipped, from a (4.3)% benefit a year ago to a 17.1% effective rate this quarter. The $0.41 gap between the two EPS figures is mostly $177 million of stock-based compensation and related payroll taxes, $25 million of acquisition amortization and $28 million of transaction costs.
Revenue of $3.21 billion was up 14.0% from $2.82 billion a year earlier and came in above the $3.095 billion midpoint management guided to three months ago. Gross margin of 72.3% was better than the 71.8% reported a year ago but below the 74.0% of Q1 and 73.5% of Q2, so growth arrived with a slightly thinner markup. Advertising contributed $607 million of the total and Marketplace $2.60 billion.
Q4 revenue is guided to $3.19–$3.24 billion, a $3.215 billion midpoint that sits only slightly above the $3.206 billion just delivered, with non-GAAP EPS of $1.48–$1.53. Full-year revenue of $12.62–$12.67 billion and non-GAAP EPS of $6.25–$6.30 imply the same shape: nine-month revenue was $9.429 billion, so the fourth quarter adds almost no sequential growth. The Q4 non-GAAP EPS figure excludes an estimated $130–$150 million of restructuring.
Log in to read 35 analyses a week for free
Create a free account to read 35 full earnings analyses each week — all five steps: expected vs. actual, guidance tracker, money flow, balance sheet and risks. Members get unlimited access.
Figures on this page come from the company's original SEC filings. The analysis is generated automatically and checked against validation rules, but may still contain errors or omissions. Not investment advice. · Generated 2026-11-03
Answers are based on the earnings release and the analysis above. Free accounts get 3 questions a week; members get 30 a day.