TLDR
- DoorDash Q4 EPS of 48 cents missed the 59-cent Wall Street estimate; revenue of $3.96B fell short of $3.99B
- Gross order value beat at $29.7B vs $29.2B expected, up 39% year over year
- Q1 GOV guidance of $31B–$31.8B topped analyst forecasts of $30.8B
- CEO Tony Xu is consolidating DoorDash, Deliveroo, and Wolt into a single tech platform
- Shares dropped 10% after earnings, then reversed to post a 14% gain in extended trading
DoorDash posted Q4 adjusted earnings of 48 cents per share on $3.96 billion in revenue, missing analyst estimates of 59 cents and $3.99 billion.
The initial selloff was sharp — shares dropped 10% right after the numbers hit. Then buyers stepped in and pushed the stock 14% higher in extended trading. DASH had already gained 6.8% during the regular session.
The headline miss masked some solid growth. Revenue climbed 38% from $2.87 billion in Q4 2023, total orders rose 32% year over year to 903 million, and net income grew to $213 million from $141 million a year ago.
Gross order value came in at $29.7 billion, up 39% and ahead of the $29.2 billion Wall Street estimate.
Where Guidance Stands
First-quarter GOV guidance of $31B–$31.8B beat the $30.8B analyst estimate, a positive signal heading into 2026.
However, Q1 adjusted EBITDA guidance of $675M–$775M missed the StreetAccount estimate of $802M, keeping some pressure on the stock.
DASH is down more than 20% in 2026 and roughly 28% since its November report, when DoorDash first revealed plans to spend “several hundred million dollars” on tech and new initiatives. That disclosure sent the stock to its worst single-day loss ever.
The Platform Overhaul Driving Costs Higher
CEO Tony Xu used his shareholder letter to put the spending in context. DoorDash is building one unified platform to replace three separate systems currently running DoorDash, Deliveroo, and Wolt.
“This is a massive and expensive undertaking,” Xu wrote, “and honestly one you shouldn’t do if you thought your best days were behind you.”
Xu said the company deliberately chose a more expensive approach to keep its codebase ready for AI integration, warning the cheaper route “could lead to disastrous results for customers.”
He pointed to Deliveroo as an early success, noting the acquired platform is growing faster at the same profit margin.
Competition from Uber Eats, Instacart, and Amazon’s expanding same-day grocery service continues to be a watchpoint for analysts.
Of 50 analysts polled by FactSet, 38 rate DASH a Buy, 12 a Hold, and none a Sell.
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