eBay Inc. (NASDAQ:EBAY) shares sank 10% in premarket trading on Thursday after the online marketplace delivered stronger-than-expected third-quarter results but issued weaker profit guidance for the upcoming quarter.
The company reported adjusted earnings of $1.36 per share, topping the $1.33 consensus forecast, while revenue climbed 9% year over year to $2.8 billion, ahead of analysts’ expectations of $2.73 billion.
Gross Merchandise Volume (GMV) rose 10% to $20.1 billion, supported by 13% growth in the U.S. and a 7% increase internationally.
“Q3 was another strong quarter for eBay, reflecting continued momentum across our marketplace and disciplined execution of our strategy,” said Jamie Iannone, Chief Executive Officer of eBay. “We’re transforming the eBay experience through AI built on 30 years of unique insights, while enhancing trusted programs in shipping, live commerce and circular fashion.”
Despite the solid quarterly figures, sentiment turned negative after eBay’s fourth-quarter guidance fell short of market expectations. The company projected adjusted earnings of $1.31 to $1.36 per share, below the $1.39 forecast from analysts surveyed by LSEG.
Revenue for the fourth quarter is expected to range between $2.83 billion and $2.89 billion, ahead of the $2.79 billion consensus, though GMV growth is expected to moderate to 4–6% on an FX-neutral basis, down from 8% in Q3.
Operationally, eBay maintained healthy momentum. Active buyers increased 1% year over year to 134 million, while advertising revenue surged 25% to $496 million, driven by strong demand for the company’s first-party ad products.
For full-year 2025, eBay forecasts adjusted earnings between $5.42 and $5.47 per share and revenue of $10.97 to $11.03 billion, compared with analyst estimates of $5.43 per share and $10.85 billion in revenue.
“Our robust Q3 performance reflects strong operational discipline as we continue on the path of sustainable growth,” said Peggy Alford, Chief Financial Officer at eBay. “Looking ahead, our focus is building on this momentum, leveraging our strong financial position and talented team to accelerate our strategic initiatives.”
During the quarter, eBay returned $757 million to shareholders through $625 million in share repurchases and $132 million in dividends, underscoring its continued commitment to capital returns.