eBay (NASDAQ:EBAY) saw its shares jump over 12% in early trading on Wednesday after the e-commerce giant surpassed second-quarter forecasts and issued positive guidance.
Strong advertising growth, ongoing momentum in collectibles, and the rollout of AI-powered tools designed to enhance personalized shopping experiences across eBay’s global marketplace supported the results.
For the quarter ending June 30, eBay reported adjusted earnings per share of $1.37, beating the Wall Street consensus estimate of $1.29. Revenue rose 6% year-over-year to $2.7 billion, exceeding expectations of $2.64 billion.
Gross merchandise volume (GMV) increased to $19.5 billion, up 6% on a reported basis and 4% when adjusted for currency fluctuations.
The adjusted operating margin improved to 28.4% from 27.9% a year ago. Total advertising revenue reached $482 million, with first-party ad revenue climbing 19% as reported to $455 million, making up 2.5% of GMV.
“EBay delivered another strong quarter, with results exceeding expectations across the board,” said Jamie Iannone, Chief Executive Officer, in a statement. “Our momentum reflects the strength of our strategic execution and the resilience of our marketplace.”
During the quarter, eBay launched several key initiatives, including the official rollout of eBay Live in the U.K. and an AI shopping assistant now accessible to select U.S. users. The company also introduced a generative AI video tool for U.S. sellers, while its Authenticity Guarantee program inspected over one million items in a single quarter.
Despite fierce competition from Amazon (NASDAQ:AMZN) and specialty platforms, eBay remains focused on core categories like trading cards, collectibles, and luxury fashion. Its recommerce strategy gained traction with national campaigns and celebrity partnerships. eBay also played a pivotal role in establishing the bipartisan Recommerce Caucus in Congress, highlighting its interest in shaping policy.
For the third quarter, eBay projects non-GAAP earnings per share between $1.29 and $1.34, and revenue ranging from $2.69 billion to $2.74 billion, both above analyst expectations. The company also announced a $0.29 per-share dividend payable on Sept. 12 and repurchased $625 million in shares last quarter, signaling a strong focus on shareholder returns.
“We think eBay has a good revenue growth set up into the fourth quarter […], but will be impacted by tougher U.S. comparisons in 2026,” analysts at BofA noted in a client report.
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