TLDR
- Uber posted Q4 earnings of 71 cents per share, missing the 85-cent estimate
- Revenue climbed 19% to $14.4 billion, surpassing forecasts
- Stock fell 8.5% to $71.32, down 22% from October peak
- Q1 earnings guidance of 65-72 cents trails analyst expectations of 81 cents
- Company expanding robotaxi operations to Hong Kong, Madrid, Houston, and Zurich
Uber Technologies delivered disappointing fourth-quarter earnings that sent shares sliding despite better-than-expected revenue. The ride-hailing giant reported adjusted earnings of 71 cents per share, missing analyst estimates of 85 cents.
The stock dropped 8.5% to $71.32 on Wednesday. Shares have now fallen 22% from the record high of $100.10 set in early October.
Revenue painted a brighter picture. The company generated $14.4 billion in the quarter, up 19% year-over-year. That beat Wall Street’s forecast of $14.3 billion.
The profit shortfall stemmed from pricing cuts designed to drive trip growth. Uber sacrificed margins to boost volume, resulting in a 22% increase in total trips.
Bookings Grow But Costs Rise
Gross bookings totaled $54.1 billion for the quarter, up 22% from the prior year. This continues a troubling pattern for the company.
The fourth quarter marked the third straight period where Uber exceeded bookings expectations but missed operating income targets. Revenue growth isn’t translating to bottom-line performance as investors hoped.
Disappointing Outlook Weighs on Shares
The first-quarter forecast added pressure to the stock. Uber expects adjusted earnings between 65 cents and 72 cents per share, well below the 81-cent consensus.
Gross bookings are projected at $52 billion to $53.5 billion. That range tops Wall Street’s $51.4 billion estimate but failed to offset earnings concerns.
Autonomous Vehicle Push Expands
Uber unveiled plans to launch robotaxi services in four new cities. Hong Kong, Madrid, Houston, and Zurich will join the autonomous vehicle network.
The Hong Kong expansion marks the company’s first robotaxi deployment in Asia. Uber will partner with Baidu, which holds driverless trial licenses in the city.
In Zurich, the company plans to work with WeRide, a firm with autonomous driving permits in Switzerland. This partnership model allows rapid scaling without heavy capital investment.
The company targets autonomous vehicle operations in over 10 markets by year-end 2026. Partners include Lucid Group for San Francisco and Volkswagen for Los Angeles.
Wall Street analysts remain bullish despite the earnings miss. The stock carries a Strong Buy rating based on 28 Buy ratings, three Holds, and one Sell.
The average price target sits at $112.31, implying 44% upside from current levels. The stock has gained 11.7% over the past year despite recent weakness.
Shares touched their lowest point since April 2025 before the earnings release. The recent decline has pushed the stock back to levels not seen in nearly a year.
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