EBAY · Q1 2026 Earnings

Bullish

eBay Inc.

Reported April 29, 2026

30-second summary

eBay delivered $3.089B revenue (+19% as-reported, +17% FX-neutral) — $39M above the $3.05B high end of the prior guide and ahead of the +13–15% FX-neutral guided pace — with U.S. GMV accelerating to +27% and total ad revenue of $581M at 2.6% of GMV (first-party ads $555M, +33% as-reported / +28% FX-neutral). Non-GAAP EPS of $1.66 beat the $1.59 high end by $0.07, though GAAP EPS of $1.12 slipped $0.02 below the $1.14 low end, weighed down by $104M of restructuring and executive bonuses plus higher stock-based compensation in the GAAP-to-non-GAAP bridge. The Q2 guide of $2.97–$3.03B at +8–10% FX-neutral is a deliberate step-down from Q1's +17% FX-neutral pace — partly a reset against tougher Pokemon/bullion and Klarna/lower-funnel marketing comps, partly the conservative posture management has signalled all year — but it still represents +8.8–11.0% YoY growth off the $2.73B prior-year base, ahead of the 2025 underlying run-rate. Management also tightened the FY2026 framework to +7–7.5% FX-neutral GMV growth and +9–11% non-GAAP operating income growth (ex-Depop), with Depop now expected to close by end of Q3 and contribute ~1pt to FY FX-neutral GMV growth.

Headline numbers

EPS

Q1 FY2026

$1.66

Revenue

Q1 FY2026

$3.09B

+19.0% YoY

Gross margin

Q1 FY2026

74.0%

Free cash flow

Q1 FY2026

$0.90B

Operating margin

Q1 FY2026

19.8%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$3.09B	+19.0%	$3.00B	+3.0%
EPS	$1.66	—	$1.41	+17.7%
Gross margin	74.0%	—	71.4%	+260bps
Operating margin	19.8%	—	20.3%	-50bps
Free cash flow	$0.90B	—	$0.48B	+87.9%

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q1 FY2026	$3.00 - $3.05 billion	$3.089 billion	+$0.039 billion above high end of guide	Beat
GAAP Diluted EPS	Q1 FY2026	$1.14 - $1.20	$1.12	-$0.02 below low end of guide	Missed
Non-GAAP Diluted EPS	Q1 FY2026	$1.53 - $1.59	$1.66	+$0.07 above high end of guide	Beat
Gross Merchandise Volume	Q1 FY2026	$21.5 - $21.9 billion	$22.2 billion	+$0.3 billion above high end of guide	Beat
FX-Neutral Revenue YoY Growth	Q1 FY2026	13% - 15%	~19% implied FX-Neutral	+4-6 percentage points above high end of guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	Q2 FY2026	$2.97 - $3.03 billion	+8.8-11.0% YoY
GAAP Diluted EPS	Q2 FY2026	$1.09 - $1.14	—
Non-GAAP Diluted EPS	Q2 FY2026	$1.46 - $1.51	—
Gross Merchandise Volume	Q2 FY2026	$21.3 - $21.7 billion	+8.0-10.0% YoY
FX-Neutral Revenue YoY Growth	Q2 FY2026	8% - 10%	—
FX-Neutral GMV YoY Growth	Q2 FY2026	8% - 10%	—

Segment performance

Q1 FY2026

Segment	Q1 FY2026	YoY
Advertising Revenue	$0.581B	+33.0%

Platform metrics

Q1 FY2026

Segment	Q1 FY2026
Gross Merchandise Volume (GMV)	$22.2 billion
GMV Growth (as-reported)	18%
GMV Growth (FX-Neutral)	14%
Active Buyers	136 million
Advertising Revenue % of GMV	2.6%

Profitability

Q1 FY2026

Segment	Q1 FY2026
Non-GAAP Operating Margin	29.4%
Free Cash Flow	$898 million

Other KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
U.S. GMV	$11.503B	+27.0%
International GMV	$10.694B	+10.0%
Capital Returned to Shareholders	$639 million	—

Management tone

Customer optimization hangover → AI experiments → U.S. inflection on focus categories → AI as the operating model, not the future opportunity.

AI moved from "rolling out" (Q4) to "the operating model" (Q1). Two quarters ago, Iannone described agentic search beginning rollout to a subset of U.S. mobile traffic and Magical Listing producing >95% CSAT in pilot. This quarter the disclosures pivot to operating metrics: 500M cumulative AI-assisted listings, >50% increase in new listing creation rate from Magical Listing, double-digit increases in sold items and GMV per lister, ~50% more search engagement in sessions using AI-powered refinements, and double-digit percentage increases in purchase behavior on agentic search beta. The signal: AI has graduated from a product story (which the market discounts) to a productivity story (which compounds into the P&L).

The international narrative remains bifurcated, but optics are flattered by FX. Q4's framing was that European weakness was structural and de minimis pressure was permanent. This quarter, Jamie described the U.S. as "resilient despite trade policy volatility" and Europe as "more challenging, as reflected in the consumer confidence and macro data," with eBay Live and C2C contributing to improved growth in UK and Germany. International FX-neutral organic GMV of +2% is a modest sequential improvement, but the +10% as-reported line is doing more rhetorical work than the underlying datapoint supports.

C2C growth narrative broadened from Depop-driven to platform-driven. Q4 framed Depop ($1B GMS, ~60% U.S. growth, under-34 demographic) as the C2C platform thesis. This quarter, with Depop close pushed to end of Q3, C2C double-digit growth in U.S., UK, and Germany — driven by Magical Listing's 50%+ lift in new listing creation rate and double-digit lift in GMV per lister — suggests the core eBay C2C engine is already inflecting before Depop adds to it. That changes the read on the deal: Depop is incremental optionality (~1pt FY FX-neutral GMV contribution), not the thesis.

Margin posture: leverage the AI productivity flywheel into reinvestment. Peggy described full-funnel marketing and strategic-priority investment as the use of upside dollars, with the +9–11% FY non-GAAP operating income growth framework against +7–7.5% FX-neutral GMV growth implying operating leverage even with continued reinvestment. Q1's 29.4% non-GAAP operating margin came in 20bps below Q1'25's 29.6% — so the leverage story is forward-looking, not yet showing in margin year-over-year.

Q&A highlights

Nikhil Devnani · Bernstein

How to reconcile 6% U.S. buyer growth with much higher GMV growth? What are trends in order frequency vs. ASP? Is the funnel for new buyers expanding?

Jamie noted that while global active buyers grew 1% YoY and enthusiasts grew 2% YoY, U.S. buyer growth of 6% and U.S. enthusiast growth of 8% tell a different story. Mid-value buyers have grown YoY every quarter since early 2024, outpacing total active buyer growth. U.S. GMV growth is balanced between active buyers, sold items, and ASP, all contributing positively.

U.S. buyer growth: 6% YoYU.S. enthusiast buyer growth: 8% YoYGlobal active buyer growth: 1% YoYGlobal enthusiast buyer growth: 2% YoY

Nathan Feather · Morgan Stanley

How is management balancing weakening consumer sentiment with continued strong spending in guidance? What consumer health trends are visible given recent gas price increases?

Jamie described a divergent macro environment: U.S. consumer demand remains resilient despite trade policy volatility and geopolitics, with broad-based strength across categories. Europe is more challenging. eBay is well-positioned due to its value proposition in used/refurbished categories. International YoY growth improved Q4 to Q1 despite macro headwinds.

U.S. consumer demand resilient despite macro volatilityEuropean market more challengingInternational YoY growth improved Q4 to Q1eBay positioned as value destination in challenging times

Bernie McTernan · Needham

Within strategic priorities (which grew 10%, 25%, accelerated in Q1), is strength broad-based or concentrated in C2C? What specifically is driving C2C growth—magical listings or other factors?

Jamie stated growth is broad-based across all major categories, with strongest growth in focus categories (collectibles, motors, fashion). Focus categories, C2C, and re-commerce—all making up ~70% of GMV—each saw double-digit growth individually. C2C strength driven by magical listing (95% CSAT, 50% more listings per lister, higher seller LTV) plus broader marketing efforts and value proposition improvements.

Focus categories, C2C, re-commerce = ~70% of total GMVAll strategic priorities had double-digit individual growthMagical listing CSAT: 95%Listings per lister increased 50% with magical listing

Eric Sheridan · Goldman Sachs

What critical investments are needed to maintain enthusiast momentum over 6-12 months? How is eBay thinking about marketing ROI in context of evolving social/search landscape?

Jamie prioritized continued investment in focus categories, AI throughout product experience (magical listing, agentic search), eBay Live (growing 8x YoY in recent weeks), and vehicles. On marketing, eBay uses full-funnel approach with activations at cultural moments (Grammys, Oscars, SNL, Berlin Fashion Week). AI enables low-cost creative generation, test-and-learn infrastructure, and personalized CRM; marketing team seeing 40% more engagement in AI-assisted campaigns.

eBay Live growing 8x YoY in recent weeksFull funnel marketing approach with event activationsAI enabling 40% more engagement in marketing campaignsAgentic search beta showing higher engagement and increased purchase behavior

Tom Champion · Piper Sandler

What are the remaining seller frictions beyond authenticity and shipping? Peggy, can you discuss headcount growth and AI efficiency offsets?

Jamie framed friction reduction more broadly as trust (authenticity guarantee, guaranteed fit, money-back guarantee, warranties, secure checkout) plus selling services (eBay International Shipping, Speedpack, forward deployment, payments, seller financing, compliance). Peggy noted the company is driving efficiencies to create capacity for strategic reinvestment without pressuring operating margins; AI is creating leverage for teams to innovate more despite significant AI talent/capex investments.

Trust layer includes AG, guaranteed fit, warranties, secure checkouteBay International Shipping expanded to Canada in Q4Speedpack expanded to Germany plus 6 more marketsSeller CSAT remains strong

Answers to last quarter's watch list

Whether Q1 FY2026 FX-neutral revenue growth lands at or above the +13–15% guide midpoint. Resolved positively. Q1 FX-neutral revenue grew +17%, beating the +13–15% guide by 200–400bps. GMV at +14% FX-neutral also exceeded the +10–12% guide. The "durable growth is closer to +10%" concern was rebutted — though the Q2 guide of +8–10% reintroduces the question.

Resolved positively

U.S. GMV sustaining double-digits in Q1. Resolved positively. U.S. GMV accelerated to +27% YoY ($11.5B), an 800bps step-up from Q4's +19%. Management's Q&A reconciliation — U.S. enthusiast growth +8%, mid-value buyers compounding since 2024, growth balanced across buyers/items/ASP — addresses the bullion/Pokemon concern by showing the acceleration is broad-based, not concentrated.

Resolved positively

International organic FX-neutral GMV trajectory. Mixed. International FX-neutral organic GMV grew +2% (770bps FX tailwind drove the +10% as-reported headline). That's a modest improvement off Q4's -1% FX-neutral organic, with eBay Live and C2C cited as contributors in UK and Germany — but the underlying acceleration is small and the as-reported optics overstate the inflection.

Continue monitoring

Depop close timing and Q2 contribution shape. Resolved. Press release and prepared remarks confirm close now expected by end of Q3 2026 (regulatory clearances received in U.S. and Germany; UK and Australia in progress). Peggy quantified FY contribution at approximately 1pt to FX-neutral GMV growth, low-single-digit headwind to operating income growth, and modestly higher single-digit dilution to EPS growth (due to foregone interest income). Depop is NOT embedded in Q2 guidance. Status: Resolved

First-party advertising penetration moving above 2.6% of GMV. Continue monitoring. Total ad revenue of $581M held at 2.6% GMV penetration. First-party ads grew +33% as-reported / +28% FX-neutral to $555M — strong absolute compounding, but penetration didn't step up.

Continue monitoring

Klarna and marketing-efficiency lapping in Q2. Resolved. Peggy explicitly flagged lapping of U.S.-Klarna partnership and lower-funnel marketing efficiencies (which became visible Q2'25 drivers) as a major factor in the implied Q1-to-Q2 deceleration, alongside bullion normalization. Status: Resolved

Organic active buyer trajectory ex-Tise. Continue monitoring. Active buyers reached 136M reported / 135M ex-Tise, both +1% YoY. U.S. buyers grew +6% YoY and U.S. enthusiast buyers +8% YoY. Global enthusiast buyers remained at ~16M, growing nearly +2%. The organic global active buyer number is +1% — modest, but the U.S. enthusiast acceleration validates the underlying thesis.

Continue monitoring

What to watch into next quarter

Whether Q2 FX-neutral revenue growth lands at or above the +8–10% guide midpoint — a print above +10% would suggest the Q2 guide was conservative posturing and the +17% Q1 momentum has more durability than management is willing to underwrite; a print at the low end would confirm the Klarna/bullion-driven step-down thesis

Depop regulatory progress in UK and Australia — both reviews are in progress with end-of-Q3 close targeted; any slip pushes the ~1pt FY26 FX-neutral GMV contribution further out

U.S. GMV holding above +15% in Q2 — the +27% Q1 print sets a high bar; sustaining mid-teens growth would validate the structural U.S. acceleration, while deceleration below +12% would suggest Q1 included larger one-time tailwinds than the Klarna/bullion/Pokemon framing implies

Whether first-party ad penetration breaks above 2.6% of GMV — Q1 was the first quarter in over a year where total ad penetration held flat rather than expanded; another flat quarter would be the first concrete sign the ad monetization flywheel is maturing

International FX-neutral organic GMV growth sustaining above +2% — Q1's +2% FX-neutral was a marginal improvement; whether eBay Live (8x YoY GMV run rate) and C2C translate into a sustained mid-single-digit international FX-neutral lift is the cleanest read on whether the focus-category playbook travels

GAAP-to-non-GAAP EPS bridge in Q2 — Q1's widened gap reflected $104M of restructuring/executive bonuses plus higher SBC; a normalizing bridge in Q2 would confirm Q1's GAAP miss was one-time

Whether FY non-GAAP operating margin can hold flat-to-up despite reinvestment — Q1 non-GAAP op margin came in 20bps below Q1'25; the FY framework of +9–11% non-GAAP op income growth on +7–7.5% FX-neutral GMV growth implies operating leverage, but reinvestment posture suggests the leverage shows up in absolute dollars, not margin

Sources

eBay Inc. Q1 2026 press release (Exhibit 99.1), filed with SEC: https://www.sec.gov/Archives/edgar/data/1065088/000106508826000092/exhibit991erebayq12026.htm
eBay Q1 2026 earnings call prepared remarks and partial Q&A (Bernstein, Morgan Stanley, Wells Fargo exchanges; Goldman Sachs question truncated in available transcript)
eBay Q4 2025, Q3 2025, Q2 2025 briefs (Tapebrief prior coverage) for cross-quarter trajectory and watch-list resolution

Get the next brief, free.

We publish analyst-grade earnings briefs the same day or morning after every call — headline numbers, segment KPIs, Q&A highlights, and tone analysis. Free during beta.

This is not investment advice.