Shares of eBay (NASDAQ:EBAY) jumped nearly 8% in U.S. premarket trading Thursday after the e-commerce group posted stronger-than-expected fourth-quarter results, issued upbeat forward guidance, and unveiled plans to acquire fashion resale platform Depop from Etsy.
The company reported fourth-quarter revenue of $3 billion, marking a 15% year-over-year increase and topping analyst forecasts of $2.87 billion. Adjusted earnings came in at $1.41 per share, ahead of the $1.35 consensus estimate. Gross merchandise volume (GMV) totaled $21.2 billion, up 10% compared with the same quarter a year earlier.
Looking ahead to the first quarter of 2026, eBay projected revenue in a range of $3 billion to $3.05 billion, exceeding Wall Street expectations of $2.97 billion. Adjusted earnings per share are expected to land between $1.53 and $1.59, above the consensus estimate of $1.48.
“We have built significant momentum across our strategic priorities, delivering meaningful growth and reinforcing our leadership in recommerce,” CEO Jamie Iannone said in a statement.
As part of its growth strategy, eBay also announced it will acquire Depop, a fashion marketplace particularly popular with younger shoppers, for roughly $1.2 billion in cash. Depop generated approximately $1 billion in gross merchandise sales in 2025 and counts 7 million active buyers, nearly 90% of whom are under 34 years old.
Advertising revenue rose to $544 million in the fourth quarter, accounting for 2.6% of total GMV. During the period, the company returned $756 million to shareholders, including $625 million in stock buybacks and $131 million in dividends.
The board declared a quarterly dividend of $0.31 per share for the first quarter of 2026, a 7% increase from the previous payout. It also authorized an additional $2 billion under its existing share repurchase program.
“Fourth-quarter results were solid across the board, […] and the first-quarter guide followed suit,” analysts at Stifel said in a note.