TLDR
- Uber posted Q3 EPS of $1.20, nearly double the $0.69 analyst estimate, with revenue climbing 20% to $13.47 billion
- Gross bookings hit $49.74 billion while adjusted EBITDA jumped 33% to $2.3 billion in the third quarter
- The Uber One membership program is boosting cross-platform engagement, with multi-service users spending three times more than average
- Q4 adjusted EBITDA guidance of $2.41-$2.51 billion missed the $2.48 billion consensus estimate
- Shares fell over 2% in premarket trading despite the earnings beat as investors reacted to softer guidance
Uber delivered a stellar third quarter that crushed Wall Street expectations. Yet the stock couldn’t escape premarket losses.
The ride-hailing giant reported earnings per share of $1.20. That’s nearly double the $0.69 consensus estimate.
Revenue rose 20% year-over-year to $13.47 billion. Analysts had projected $13.28 billion.
Gross bookings totaled $49.74 billion for the quarter ending September 30. The Street expected $48.73 billion.
Uber processed 3.5 billion trips during the period. That represents a 22% increase from last year.
Adjusted EBITDA climbed 33% to $2.3 billion. The margin expanded to 4.5% of gross bookings from 4.1% a year earlier.
CEO Dara Khosrowshahi credited returning students and stricter return-to-office policies. These trends fueled higher demand for urban rides.
Delivery Growth Outpaces Core Ride Business
The delivery segment stole the show with 29% sales growth. That topped the 20% increase in mobility revenue.
Freight operations remained flat during the quarter. But the delivery momentum tells a compelling story about Uber’s evolution.
The Uber One membership program is reshaping user behavior. Members are ordering more food and groceries through the platform.
Customers using multiple Uber services show 35% better retention. They also spend three times more than single-service users.
Only 20% of active users in dual-service markets use both rides and delivery. Top markets already exceed that penetration rate.
Monthly active platform consumers grew 17% year-over-year. Trips per consumer ticked up 4%.
Guidance Dampens Investor Enthusiasm
Uber forecast Q4 gross bookings between $52.25 billion and $53.75 billion. The midpoint beats the $52 billion analyst consensus.
But adjusted EBITDA guidance fell short. The company expects $2.41 billion to $2.51 billion for the current quarter.
Wall Street wanted $2.48 billion. The midpoint of Uber’s range comes in below that mark.
Shares dropped more than 2% in premarket trading Tuesday. The decline overshadowed the strong quarterly performance.
The stock had rallied 65% year-to-date before the report. That surge reflected confidence in Uber’s market dominance.
Starting with Q1 2026 guidance, Uber will report adjusted profit forecasts instead of adjusted EBITDA. The shift aligns with practices among mature companies.
Khosrowshahi called Q3 one of the company’s largest trip-volume increases ever. He highlighted ongoing investments in AI and autonomous vehicle technology.
The company enters the holiday season with strong delivery momentum. Management expects that trend to carry through the fourth quarter based on current bookings data.
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