eBay Inc. shares surged 7.26% in after-hours trading on Wednesday, following the release of the company's fourth-quarter financial results and a major strategic acquisition announcement.

The e-commerce giant reported quarterly adjusted earnings of $1.41 per share, beating analyst estimates of $1.35, while revenue of $2.97 billion exceeded expectations of $2.88 billion. Gross merchandise volume grew 10% year-over-year to $21.2 billion. Furthermore, eBay provided an optimistic outlook for the first quarter of 2026, forecasting revenue between $3.00 billion and $3.05 billion, well above Wall Street's average estimate.

In a separate strategic move, eBay announced it has entered into a definitive agreement to acquire the fashion marketplace Depop from Etsy, Inc. for approximately $1.2 billion in cash. The acquisition is aimed at enhancing eBay's consumer-to-consumer value proposition by adding a leading fashion platform with a highly engaged Gen Z and Millennial customer base, positioning the company for growth in the expanding recommerce landscape.