Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
eBay delivered strong Q1 FY2026 revenue growth of 19.5% YoY to $3.09B, driven by gross profit expansion, though operating income was flat and operating margin compressed nearly 4 percentage points.
Revenue
$3.09B
+19.50% YoY
EPS (Diluted)
$1.12
+6.67% YoY
Gross Margin
74.0%
+1.0 pts YoY
Operating Income
$611M
0.00% YoY
Source: SEC XBRL
Ebay (EBAY) reported Q1 FY2026 revenue of $3.09B, up 19.5% year over year. Operating margin was 19.8%, down 3.8 points from 23.6% a year earlier. Operating cash flow was $969M, up 28.3% year over year. EBAY's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.60 | 1.54 | Beat +4.2% |
| Mar 2026This filing | 1.66 | 1.61 | Beat +3.1% |
| Dec 2025 | 1.41 | 1.37 | Beat +3.3% |
| Sep 2025 | 1.36 | 1.36 | Beat +0.0% |
Adjusted (non-GAAP) EPS of $1.66 versus the $1.61 analyst consensus — a +3.1% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.12.
Compiled by AI from this SEC filing
eBay reported Q1 FY2026 revenue of $3.09B, up 19.5% YoY from $2.585B, representing the most significant top-line acceleration visible in recent quarters and suggesting meaningful platform or volume growth.
Source: 10-Q Income Statement
Gross profit rose 21.1% YoY to $2.287B, with gross margin improving approximately 100 basis points to 74.0% from 73.0%, indicating eBay is growing revenue faster than its direct costs.
Source: 10-Q Income Statement
Despite flat operating income of $611M YoY (0.0% change), operating margin contracted sharply from 23.6% to 19.8%, a decline of roughly 390 basis points, reflecting significant growth in operating expenses including a 14.5% increase in R&D to $450M.
Source: 10-Q Income Statement
Operating cash flow jumped 28.3% YoY to $969M from $755M, demonstrating strong cash generation capability that outpaced net income growth of just 2.6%, suggesting favorable working capital dynamics.
Source: 10-Q Cash Flow Statement
eBay returned $625M to shareholders in Q1 FY2026 through $486M in share buybacks and $139M in dividends, though buyback activity declined 21.0% YoY, potentially reflecting balance sheet management priorities.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
Operating margin fell from 23.6% to 19.8% YoY despite strong revenue growth, as operating expenses — including a 14.5% increase in R&D spend to $450M — grew faster than revenue. If this cost trajectory continues, profitability could be further pressured even with sustained top-line growth.
Source: 10-Q Income Statement
Total assets declined 5.6% YoY to $17.89B and stockholders' equity fell 8.6% to $4.41B, while the debt-to-equity ratio stands at a elevated 3.06x. This leverage level limits financial flexibility and increases vulnerability to adverse market conditions.
Source: 10-Q Balance Sheet
Share repurchases declined 21.0% YoY to $486M in Q1 FY2026, which may signal a shift in capital allocation priorities or reduced confidence in buyback economics at current valuations. Reduced buybacks could slow EPS accretion going forward.
Source: 10-Q Cash Flow Statement
Net income grew only 2.6% YoY to $512M despite revenue growing 19.5%, indicating significant cost absorption between the gross profit and net income lines. This divergence between top-line and bottom-line growth warrants monitoring.
Source: 10-Q Income Statement
Investing cash flow fell 41.7% YoY to $783M, which could reflect lower proceeds from asset sales or investments. Combined with declining cash balances (down 4.5% YoY to $2.89B), liquidity management will be an important factor to watch.
Source: 10-Q Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.09 $B | 2.59 $B | +19.50% |
Cost of Revenue $M | 802.00 $M | 697.00 $M | +15.06% |
Gross Profit $B | 2.29 $B | 1.89 $B | +21.13% |
Operating Income $M | 611.00 $M | 611.00 $M | 0.00% |
Net Income $M | 512.00 $M | 499.00 $M | +2.61% |
EPS (Basic) $ | 1.14 $ | 1.07 $ | +6.54% |
EPS (Diluted) $ | 1.12 $ | 1.05 $ | +6.67% |
R&D Expense $M | 450.00 $M | 393.00 $M | +14.50% |
Answers draw on this SEC filing and the data on this page
eBay reported accelerating revenue growth and significantly higher profitability in Q2 FY2026, driven by improved margins and operating leverage.
eBay delivered FY2025 revenue of $11.1B (+7.9% YoY) driven by strong top-line growth, though operating income dipped 1.8% as R&D and cost investments weighed on margins, while EPS rose 11% aided by share buybacks.
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