Retail Insight Network

eBay net income drops 16% despite revenue rise in third quarter

For the three months ended 30 September 2026, revenue reached $3.20bn and diluted earnings per share (EPS) from continuing operations dropped 13% to $1.11.

US e-commerce company eBay recorded a 16% year-on-year decline in net income from continuing operations to $501m for the third quarter of 2026, despite revenue rising 14%.

For the three months ended 30 September 2026, revenue reached $3.20bn and diluted earnings per share (EPS) from continuing operations dropped 13% to $1.11.

Gross merchandise volume (GMV) grew 15% to $23.16bn, representing a 16% rise on a foreign exchange (FX)-neutral basis.

Operating income grew by 7.8% to $616m during the period, while operating margin contracted to 19.2% from 20.3% recorded in the third quarter of the previous year.

The business generated $875m in cash flow from operations, alongside $749m in free cash flow from continuing operations.

Total advertising revenue reached $607m for the quarter.

First-party advertising offerings on the marketplace accounted for $575m of this total, representing an increase of 16% on both a reported and FX-neutral basis.

Regarding logistical services, the company rolled out its managed delivery service to all new and reactivated domestic merchants in the US, whilst introducing eBay International Shipping for sellers in Germany and the UK.

In corporate activity, the company completed the cash acquisition of peer-to-peer fashion marketplace Depop from Etsy in July for $1.4bn.

The financial effects of this transaction have been incorporated into the group's forward guidance.

For the fourth quarter of 2026, eBay projects revenue between $3.19bn and $3.24bn, GMV in the range of $23.7bn to $24.1bn, and diluted EPS from $0.82 to $0.87.

For the full year of 2026, revenue is forecast to be between $12.62bn and $12.67bn, with GMV anticipated between $91.5bn and $91.9bn, and diluted EPS expected to range between $4.26 and $4.31.

eBay CEO Jamie Iannone said: “Our Focus Categories, C2C marketplace, and Recommerce leadership are driving strong, sustained growth, while innovations across eBay Live, Shipping, and our portfolio are making the platform more trusted, seamless, and compelling for buyers and sellers around the world.”