Online marketplace eBay (NASDAQ: EBAY) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 14.8% year on year to $3.13 billion. On top of that, next quarter’s revenue guidance ($3.10 billion at the midpoint) was surprisingly good and 4.1% above what analysts were expecting. Its non-GAAP profit of $1.60 per share was 6.2% above analysts’ consensus estimates.
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eBay (EBAY) Q2 CY2026 Highlights:
- Revenue: $3.13 billion vs analyst estimates of $3.02 billion (14.8% year-on-year growth, 3.7% beat)
- Adjusted EPS: $1.60 vs analyst estimates of $1.51 (6.2% beat)
- Adjusted Operating Income: $893 million vs analyst estimates of $838.7 million (28.5% margin, 6.5% beat)
- Revenue Guidance for Q3 CY2026 is $3.10 billion at the midpoint, above analyst estimates of $2.97 billion
- Adjusted EPS guidance for Q3 CY2026 is $1.39 at the midpoint, below analyst estimates of $1.44
- Operating Margin: 21.6%, up from 17.5% in the same quarter last year
- Free Cash Flow Margin: 10.4%, down from 29% in the previous quarter
- Active Buyers: 136 million, up 2 million year on year
- Market Capitalization: $48.67 billion
Company Overview
Originally known as the first online auction site, eBay (NASDAQ: EBAY) is one of the world’s largest online marketplaces.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, eBay’s 6.5% annualized revenue growth over the last three years was tepid. This fell short of our benchmark for the consumer internet sector and is a rough starting point for our analysis.
This quarter, eBay reported year-on-year revenue growth of 14.8%, and its $3.13 billion of revenue exceeded Wall Street’s estimates by 3.7%. Company management is currently guiding for a 9.8% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 3.8% over the next 12 months, a slight deceleration versus the last three years. This projection doesn’t excite us and suggests its products and services will face some demand challenges.
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Active Buyers
Buyer Growth
As an online marketplace, eBay generates revenue growth by increasing both the number of users on its platform and the average order size in dollars.
Over the last two years, eBay’s active buyers, a key performance metric for the company, increased by 1.3% annually to 136 million in the latest quarter. This growth rate is one of the lowest in the consumer internet sector, largely a function of its already massive scale and saturated market. If eBay wants to reaccelerate growth, it likely needs to innovate with new products. 
In Q2, eBay added 2 million active buyers, leading to 1.5% year-on-year growth. The quarterly print isn’t too different from its two-year result, suggesting its new initiatives aren’t accelerating buyer growth just yet.
Revenue Per Buyer
Average revenue per buyer (ARPB) is a critical metric to track because it measures how much the company earns in transaction fees from each buyer. ARPB also gives us unique insights into a user’s average order size and eBay’s take rate, or “cut”, on each order.
eBay’s ARPB growth has been impressive over the last two years, averaging 8.1%. Its ability to increase monetization while growing its active buyers demonstrates its platform’s value, as its buyers continue to spend more each year. 
This quarter, eBay’s ARPB clocked in at $23.04. It grew by 13.1% year on year, faster than its active buyers.
Key Takeaways from eBay’s Q2 Results
It was great to see eBay’s revenue guidance for next quarter top analysts’ expectations. We were also happy its revenue outperformed Wall Street’s estimates. On the other hand, its EPS guidance for next quarter missed. Overall, this print was mixed. The stock traded up 1.3% to $112.44 immediately after reporting.
So do we think eBay is an attractive buy at the current price? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
