Earnings Preview: What To Expect From eBay’s Report

eBay Inc. (EBAY), with a market capitalization of $51.17 billion, operates a global online marketplace that connects buyers and sellers worldwide, enabling transactions across diverse product categories, including electronics, fashion, and collectibles. Headquartered in San Jose, California, the company generates revenue primarily through transaction fees and advertising services. Its platform supports peer-to-peer and business-to-consumer sales across numerous international markets, making it a cornerstone of digital commerce.

The company is expected to report its second-quarter results for fiscal 2026 soon. Ahead of the release, Wall Street analysts are optimistic about its bottom-line trajectory. 

Analysts expect eBay to report a profit of $1.20 per share on a diluted basis for Q2, up 12.2% year-over-year (YOY). The company has surpassed consensus estimates in two of the last four reported quarters and matched them in one. For the full fiscal year 2026, Wall Street analysts expect the company’s diluted EPS to grow by 16.5% annually to $4.87, followed by a 10.7% improvement to $5.39 in fiscal 2027. 

As eBay focuses on high-margin categories like fashion and luxury goods while leveraging AI, investors have rewarded its rebound in gross merchandise volume (GMV), driven by consumer interest in recommerce, collectibles, and auto parts. 

Over the past 52 weeks, the stock has gained 53%, and year-to-date (YTD), it has climbed 32.3%. On the other hand, the broader S&P 500 Index ($SPX) has increased by 20.2% and 9.3% over the same periods, respectively. Hence, eBay has outperformed the broader market over these periods. 

Next, we compare the stock's performance with that of its sector. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) has been up by 6% over the past 52 weeks but declined 3.4% YTD. Therefore, the stock has also outperformed its sector over these periods.

For the first quarter, eBay reported better-than-expected results, leading to a 3.4% intraday gain in the stock on Apr. 29. The company’s net revenues increased 19% year-over-year (YOY) to $3.09 billion, while its non-GAAP EPS grew 21% to $1.66. In May, eBay rejected a $56 billion takeover proposal from GameStop Corp. (GME), calling it “neither credible nor attractive.” 

Wall Street analysts have been bullish about eBay’s future. Among the 30 analysts covering the stock, the consensus rating is “Moderate Buy.” The rating configuration has remained roughly the same over the past three months. eBay has nine “Strong Buy” ratings, two “Moderate Buys,” 18 “Holds,” and one “Moderate Sell.” The mean price target of $110.57 implies a 4.1% downside from current levels. However, the Street-high price target of $130 implies a 12.8% upside.