Revenue rose 13.7%, yet continuing-operations GAAP EPS fell to $1.11 from $1.27 as operating costs outgrew sales and the tax rate rose 8-K. Q4 GAAP EPS is guided to $0.82 to $0.87 8-K.
eBay Inc · Q3 2026 · Reported 22 Oct 2026 · US
Key figures
Million USD | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
Revenue | 3,206.00 | 2,820.00 | +13.7 % |
Net income | 497.00 | 632.00 | -21.4 % |
Diluted EPS | 1.10 USD/share | 1.35 USD/share | -18.5 % |
Net margin | 15.5 % | 22.4 % | -6.9 pp |
Figures in USD, as reported. Margins are computed from the reported lines.
Growth came from the U.S., while international revenue was nearly flat
Revenue was $3.21B, up 13.7% from a year earlier 8-K. GMV was $23,166M, up 15% as reported and 16% FX-neutral 7. Advertising revenue reached $607M against $525M, up 16%, and the filing names GMV growth, first-party advertising penetration and a U.S. shipping program as the drivers of net revenue growth 4.
U.S. revenue rose 26% to $1,831M, while international revenue rose 1% to $1,375M 5. The filing says U.S. GMV growth was led by Collectibles, Electronics and Fashion, including Depop, which eBay acquired on July 30, so part of that growth is acquired 923.
Costs outgrew revenue, and the take rate slipped
Total operating expenses rose 17% to $1,703M, ahead of the 14% revenue gain 12. Sales and marketing rose 23% to $747M, with marketing program costs up $120M, primarily related to Depop and eBay Live 12. GAAP operating margin fell to 19.2% from 20.3% a year earlier, and company-defined non-GAAP operating margin fell to 26.3% from 27.0% 8-K.
Take rate fell to 13.84% from 14.03% 8. The filing attributes this to faster growth in eBay Live and C2C, category and price mix, and Depop shipping incentives, partly offset by shipping programs and first-party advertising 89. General and administrative expense included $42M more in transaction-related and legal costs, partly offset by $24M of 2025 restructuring that did not recur 14.
Part of the GAAP profit decline reflects a flattering year-earlier tax line
Net income was $497M against $632M a year earlier, and net margin fell 6.9 points to 15.5%. On the release's continuing-operations basis, GAAP net income was $501M against $593M, and diluted EPS was $1.11 against $1.27 8-K. The effective tax rate was 17.1% against (4.3)% a year earlier, because 2025 carried a larger benefit from audit settlements and the One Big Beautiful Bill 16.
Company-defined non-GAAP net income rose 8% to $685M, and non-GAAP EPS rose 12% to $1.51 from $1.35 8-K. The faster EPS gain reflects fewer shares, 453 million against 467 million 8-K. The picture is lower operating margin on both measures, with the tax comparison widening the GAAP decline.
Quarterly cash flow fell against a year earlier while the balance sheet absorbed Depop
Operating cash flow from continuing operations was $875M against $900M a year earlier, and free cash flow was $749M against $803M, with capital expenditure of $126M against $97M 8-K. For nine months, operating cash flow was $2,394M against $1,315M, mainly because cash paid for income taxes fell $794M 17.
eBay returned $827M in the quarter, including $689M of repurchases 8-K. Cash and non-equity investments were $3.3B at September 30, 2026 against $4.8B at December 31, 2025, and $750M of commercial paper was outstanding 1921. In the nine months, eBay paid $1.3B for Depop, net of cash acquired 17.
What to watch next
Management guides Q4 revenue of $3.19B to $3.24B, GAAP EPS of $0.82 to $0.87 and non-GAAP EPS of $1.48 to $1.53, and full-year GAAP EPS of $4.26 to $4.31 8-K.
Whether take rate and operating margin stabilize as Depop and eBay Live scale; Q3 take rate was 13.84% against 14.03% a year earlier 8.
Depop integration and funding: the guidance includes its expected impact, and the company has $750M of commercial paper outstanding and $1.3B of repurchase authorization remaining 21.
Sources
Produced by Clarifo Research with the Clarifo financial research engine from the company's public filings. AI was used in parts of the analysis and drafting. Figures are checked automatically against the filings they come from. This is not investment advice.