eBay Inc. shares surged 7.34% in pre-market trading, driven by a combination of better-than-expected fourth-quarter financial results, strong forward guidance, and a major strategic acquisition announcement.

The e-commerce giant reported Q4 non-GAAP earnings of $1.41 per diluted share, surpassing the FactSet analyst consensus of $1.35. Revenue for the quarter reached $2.97 billion, also exceeding expectations of $2.88 billion and representing a 15% year-over-year increase. Gross merchandise volume grew 10% to $21.2 billion.

Further fueling investor optimism, eBay provided first-quarter 2026 revenue guidance between $3.00 billion and $3.05 billion, significantly above the average analyst estimate of $2.79 billion. Concurrently, the company announced a definitive agreement to acquire the fashion marketplace Depop from Etsy, Inc. for approximately $1.2 billion in cash. The acquisition is aimed at bolstering eBay's presence in the growing recommerce and secondhand fashion market, particularly with younger Gen Z and Millennial consumers. The company also increased its quarterly cash dividend by 7% to $0.31 per share.