Revenue Growth Accelerates
Revenue reached $3.13B, a 14.8% increase over the prior-year quarter, marking the fastest growth in recent periods.
Source: 10-Q Income Statement (XBRL)
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's Q2 FY2026 performance was defined by accelerating revenue growth and a sharp expansion in profitability. The financials show revenue increased at its fastest rate in recent periods, while operating income surged as costs grew at a slower pace than top-line gains. Gross margin and operating margin both widened, reflecting improved efficiency and operating leverage. The balance sheet remained stable with slight equity growth and increased cash reserves, though debt remains elevated relative to equity. With all key income statement metrics moving favorably, the quarter presented no evident points of tension, leaving sustainability as the main open question.
Revenue
$3.13B
+14.80% YoY
EPS (Diluted)
$1.21
+55.13% YoY
Gross Margin
73.5%
+0.9 pts YoY
Operating Income
$676M
+41.13% YoY
Source: SEC XBRL
Ebay (EBAY) reported Q2 FY2026 revenue of $3.13B, up 14.8% year over year. Operating margin was 21.6%, up 4.1 points from 17.5% a year earlier. EBAY's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 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% |
| Jun 2025 | 1.37 | 1.32 | Beat +3.6% |
Compiled by AI from this SEC filing
Revenue reached $3.13B, a 14.8% increase over the prior-year quarter, marking the fastest growth in recent periods.
Source: 10-Q Income Statement (XBRL)
Gross margin expanded to 73.5%, up 0.9 percentage points, as cost of revenue grew only 10.9% while revenue rose 14.8%.
Source: 10-Q Income Statement (XBRL)
Operating income jumped 41.1% to $676M, as R&D spending grew only 7.1% and other operating expenses were controlled.
Source: 10-Q Income Statement (XBRL)
Net income rose 51.1% to $550M, and diluted EPS grew 55.1% to $1.21, aided by share buybacks that reduced the share count.
Source: 10-Q Income Statement (XBRL)
Year-to-date operating cash flow reached $1.49B, a substantial increase from $415M in the prior-year period, driven by strong earnings and working capital changes.
Source: 10-Q Cash Flow Statement (XBRL)
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
eBay's debt-to-equity ratio stands at 2.84, indicating significant reliance on debt financing. This could limit financial flexibility and increase vulnerability to interest rate changes or economic downturns.
Source: 10-Q Balance Sheet (XBRL)
The company faces intense competition from other online marketplaces and retail giants, which could pressure fees, reduce market share, or require increased marketing spend to maintain growth.
Source: 10-Q Income Statement (XBRL)
A significant portion of eBay's revenue is generated internationally, exposing results to currency fluctuations that could negatively impact reported growth rates.
Source: 10-Q Income Statement (XBRL)
Evolving regulations in e-commerce, data privacy, and tax policies could increase operational costs and require changes to business practices.
Source: 10-Q Income Statement (XBRL)
eBay's platform relies on discretionary consumer spending, which may decline in economic downturns, affecting transaction volumes and advertising revenue.
Source: 10-Q Income Statement (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.13 $B | 2.73 $B | +14.80% |
Cost of Revenue $M | 832.00 $M | 750.00 $M | +10.93% |
Gross Profit $B | 2.30 $B | 1.98 $B | +16.26% |
Operating Income $M | 676.00 $M | 479.00 $M | +41.13% |
Net Income $M | 550.00 $M | 364.00 $M | +51.10% |
EPS (Basic) $ | 1.24 $ | 0.79 $ | +56.96% |
EPS (Diluted) $ | 1.21 $ | 0.78 $ | +55.13% |
R&D Expense $M | 484.00 $M | 452.00 $M | +7.08% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
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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