eBay’s Q3 2025 Results: Strong Performance Meets Cautious Outlook

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eBay Inc. has delivered a robust set of figures for the third quarter of 2025, surpassing market expectations. The e-commerce giant reported earnings per share (EPS) of $1.36, exceeding the consensus estimate by $0.03. Revenue climbed 9.5% year-over-year to reach $2.82 billion. However, despite this solid operational performance, forward guidance and analyst sentiment present a more nuanced and cautious picture for the company's trajectory.

While celebrating the quarterly beat, eBay is navigating several headwinds. A significant 40% year-over-year decline in traditional display advertising revenue was reported. Furthermore, the company's projected operating margin for the full year 2025 falls below current consensus expectations. Looking ahead, management anticipates a slowdown in Gross Merchandise Volume (GMV) growth for fiscal 2026, attributing this primarily to heightened competitive pressures.

In response, the company is advancing strategic initiatives, including the introduction of a climate transformation plan and an expansion of its circular fashion fund across both Europe and North America.

Divergent Views from Wall Street

The analyst community remains deeply divided on eBay's prospects. The average price target among 38 monitored analysts stands at $95.52, accompanied by a consensus "Hold" rating. The range of these targets is exceptionally wide, stretching from a bullish $115.00 all the way down to a bearish $64.00.

Recent adjustments from major firms highlight this split:
* Morgan Stanley raised its target from $102.00 to $112.00, reaffirming an "Overweight" rating.
* BMO Capital Markets increased its target from $102.00 to $107.00, maintaining an "Outperform" call.
* In contrast, Goldman Sachs slightly reduced its target from $78.00 to $77.00 and reiterated a "Sell" recommendation. This target suggests a potential downside of nearly 20% from the current share price.

Currently, 56% of analysts recommend holding the stock, while 16% advocate a "Strong Buy" and 4% advise selling.

Financial Health and Forward Guidance

The company demonstrated strong financial metrics for the quarter, including a return on equity of 41.94% and a net profit margin of 20.37%. For the entirety of 2025, eBay's own guidance forecasts EPS in the range of $4.09 to $4.14. This outlook contrasts with the average analyst expectation of just $3.86 for the fiscal year, which is approximately 6.2% below the midpoint of the company's projection. For the crucial fourth quarter, management anticipates EPS between $1.31 and $1.36.

Market Performance and Valuation

eBay shares recently traded at $94.42, having advanced roughly 14% over the preceding four weeks. A recent valuation analysis by Simply Wall St. suggests the stock is trading marginally, about 0.5%, above its estimated fair value. The upcoming fourth-quarter and full-year 2025 results are seen as the next critical test, needing to confirm the long-term viability of the company's turnaround narrative.