eBay Stock Soars 13.46% on Strong Q2 Earnings, Optimistic Guidance

On July 31, 2025, eBay's stock surged by 13.46% in pre-market trading, marking a significant rise driven by strong financial performance and optimistic guidance.

eBay reported impressive second-quarter results, with revenue of $2.73 billion, surpassing analysts' estimates of $2.64 billion. This performance was bolstered by a 6.1% year-on-year increase in sales, indicating robust growth in the company's core business.

The company's adjusted earnings per share (EPS) came in at $1.37, exceeding expectations of $1.30. This strong profitability was further supported by an adjusted operating income of $775 million, which was 6.5% higher than anticipated.

eBay's guidance for the next quarter was also optimistic, with revenue expected to reach $2.72 billion at the midpoint, 2.2% above analysts' estimates. The company's adjusted EPS guidance for the next quarter was set at $1.32, slightly above the consensus estimate of $1.30.

Despite these positive results, eBay's operating margin decreased to 17.7% from 21.3% in the same quarter last year. The company also reported a free cash flow of -$441 million, down from $644 million in the previous quarter, indicating potential challenges in cash management.

eBay's active buyer base grew by 2 million to 134 million, reflecting a 1.5% year-on-year increase. This growth suggests that the company's initiatives to attract new users are gaining traction, although the overall buyer growth rate remains modest.

Looking ahead, eBay's revenue growth is expected to continue, with sell-side analysts projecting a 4% increase over the next 12 months. However, this projection is below the average for the sector, indicating that the company may need to innovate further to maintain its competitive edge.