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UBER vs. LYFT: Which Stock Is Better Positioned Post Q1 Results?
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Key Takeaways
Uber Q1 2026 EPS of 72 cents beat 70 cents estimate; total gross bookings rose 25% to $53.7B.
Uber sees Q2 gross bookings $56.25B-$57.75B, up 18-22% Y/Y on constant currency.
Lyft Q1 EPS of 21 cents missed the 31-cents consensus; shares slid on the earnings miss.
Uber Technologies (UBER - Free Report) , headquartered in San Francisco, CA, has pursued an aggressive global expansion strategy while broadening its business portfolio. While ride-sharing continues to be its core business, the company has established substantial additional revenue sources through Uber Eats, its food delivery platform, and Uber Freight, a logistics marketplace. This diversified approach reflects Uber’s ambition to evolve into a comprehensive transportation and delivery ecosystem rather than remain solely a ride-hailing company.
Lyft (LYFT - Free Report) , also based in San Francisco, has adopted a more concentrated strategy. The company operates primarily within the United States and remains heavily focused on ride-sharing, placing far less emphasis on diversification. This focused business model allows Lyft to channel resources toward strengthening the core services, although it also reduces exposure to higher-growth segments such as delivery services and international expansion.
Earlier this month, both companies announced their first-quarter 2026 results. Given their contrasting strategic approaches, it is worthwhile to assess which stock offers the more attractive investment opportunity following the latest quarterly earnings reports.
The Case for UBER
On May 6, Uber posted better-than-expected earnings per share for the first quarter of 2026. Moreover, management gave a bullish outlook for bookings, noting that demand remains strong despite geopolitical tensions in the Middle East.
Uber’s earnings per share of 72 cents beat the Zacks Consensus Estimate of 70 cents. The reported figure matched the higher end of the company's guided range of 65-72 cents per share.
Total revenues of $13.2 billion missed the Zacks Consensus Estimate of $13.3 billion. The top line jumped 14.4% year over year on a reported basis and 10% on a constant currency basis.
Despite the crisis in the Middle East, UBER’s Mobility business saw impressive demand, with segmental revenues increasing 5% year over year on a reported basis and 1% on a constant currency basis to $8.2 billion.
Gross bookings from the unit were highly impressive, aiding the first-quarter results. From the Mobility segment in the March quarter, gross bookings increased 20% year over year on a constant-currency basis to $26.4 billion.
Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 23% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the first quarter rose 23% year over year on a constant-currency basis to $26 billion. Total gross bookings jumped 25% to $53.7 billion, ahead of the Zacks Consensus Estimate of $52.9 billion.
Uber saw a 17% increase in its monthly active platform consumers to 199 million users in the March quarter. The platform recorded 3.64 billion trips, marking a 20% year-over-year rise, driven by both ride-hailing and delivery services.
The earnings beat by Uber in the March quarter meant that its impressive earnings surprise record continued. Uber has reported a positive earnings surprise in three of the past four quarters (and the metric was negative in the other quarter). The average beat is 89.6%.
More than the first-quarter numbers, it was the second-quarter gross bookings forecast that pleased investors. Shares of the ride-hailing giant have gained 3% so far post the earnings release.
Despite the ongoing tensions in the Middle East and the resultant fuel price spike, gross bookings are projected in the range of $56.25-$57.75 billion, highlighting growth of 18% to 22% year over year on a constant-currency basis. The outlook assumes a roughly 2 percentage-point currency tailwind to total reported year-over-year growth.
Adding to the bullishness, management expects June quarter earnings to grow in the 31-38% band year over year. As a result, second-quarter earnings per share are expected in the 78-82 cents band.
Despite the uptick, following the first-quarter earnings beat, Uber’s price performance is disappointing so far this year, lagging the Zacks Internet-Services industry. Uber’s shares have dropped primarily on concerns regarding competition in the robotaxi and autonomous driving space.
The Case for LYFT
On May 7, Lyft released its first-quarter 2026 earnings report. Quarterly earnings per share of 21 cents missed the Zacks Consensus Estimate of 31 cents but increased 10.5% year over year. Revenues of $1.65 billion beat the Zacks Consensus Estimate by 1.8% and grew 13.8% year over year.
The miss by Lyft in the March quarter meant that its unimpressive earnings surprise record continued. Lyft has reported a negative earnings surprise in each of the past four quarters. The average miss is 53.3%.
In the March quarter, gross bookings increased 19% year over year to $4.9 billion. This was the 20th consecutive quarter where Lyft demonstrated double-digit year-on-year growth in the key metric, demonstrating the resilience and momentum of its customer-friendly strategy. Active Riders increased 17% year over year to 28.3 million.
For the second quarter of 2026, Lyft anticipates gross bookings to grow 18-21% year over year, reaching $5.3-$5.43 billion. The company expects adjusted EBITDA to be in the band of $160 million and $180 million. Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) for the June quarter is anticipated to be in the range of 3-3.3%.
The loss, however, reported in the quarter seems to have disappointed investors, resulting in the stock declining sharply since the first-quarter earnings release. In fact, Lyft’s shares have performed worse than Uber so far this year.
YTD Price Comparison
Image Source: Zacks Investment Research
Lyft More Attractive Than Uber on Valuation Front
Lyft is trading at a forward sales multiple of 0.65X, comparing favorably to Uber’s 2.5X. LYFT has a Value Score of B, compared with UBER’s C.
Image Source: Zacks Investment Research
End Note
Uber’s strong focus on strategic diversification and shareholder-friendly initiatives remains a key advantage. Supported by a solid market capitalization of $152.85 billion, the company appears well-equipped to withstand the current macroeconomic uncertainty. Uber’s diversification efforts — including acquisitions, global expansion and innovative service offerings — have been instrumental in mitigating risks and strengthening its competitive position.
It is true that Lyft, like Uber, continues to benefit from healthy gross bookings. However, Lyft’s weaker earnings surprise and relatively subdued stock performance compared with Uber place it at a disadvantage. Based on our analysis, Uber clearly stands out as the stronger contender in this comparison with Lyft. Therefore, it is reasonable to conclude that Uber is better positioned than Lyft following their respective first-quarter 2026 earnings releases.
Lyft currently carries a Zacks Rank #5 (Strong Sell) and Uber has a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
UBER vs. LYFT: Which Stock Is Better Positioned Post Q1 Results?
Key Takeaways
Uber Technologies (UBER - Free Report) , headquartered in San Francisco, CA, has pursued an aggressive global expansion strategy while broadening its business portfolio. While ride-sharing continues to be its core business, the company has established substantial additional revenue sources through Uber Eats, its food delivery platform, and Uber Freight, a logistics marketplace. This diversified approach reflects Uber’s ambition to evolve into a comprehensive transportation and delivery ecosystem rather than remain solely a ride-hailing company.
Lyft (LYFT - Free Report) , also based in San Francisco, has adopted a more concentrated strategy. The company operates primarily within the United States and remains heavily focused on ride-sharing, placing far less emphasis on diversification. This focused business model allows Lyft to channel resources toward strengthening the core services, although it also reduces exposure to higher-growth segments such as delivery services and international expansion.
Earlier this month, both companies announced their first-quarter 2026 results. Given their contrasting strategic approaches, it is worthwhile to assess which stock offers the more attractive investment opportunity following the latest quarterly earnings reports.
The Case for UBER
On May 6, Uber posted better-than-expected earnings per share for the first quarter of 2026. Moreover, management gave a bullish outlook for bookings, noting that demand remains strong despite geopolitical tensions in the Middle East.
Uber’s earnings per share of 72 cents beat the Zacks Consensus Estimate of 70 cents. The reported figure matched the higher end of the company's guided range of 65-72 cents per share.
Total revenues of $13.2 billion missed the Zacks Consensus Estimate of $13.3 billion. The top line jumped 14.4% year over year on a reported basis and 10% on a constant currency basis.
Despite the crisis in the Middle East, UBER’s Mobility business saw impressive demand, with segmental revenues increasing 5% year over year on a reported basis and 1% on a constant currency basis to $8.2 billion.
Gross bookings from the unit were highly impressive, aiding the first-quarter results. From the Mobility segment in the March quarter, gross bookings increased 20% year over year on a constant-currency basis to $26.4 billion.
Uber’s Delivery business also performed well in the quarter, with segmental revenues growing 23% year over year on a constant-currency basis. Gross bookings from the Delivery segment in the first quarter rose 23% year over year on a constant-currency basis to $26 billion. Total gross bookings jumped 25% to $53.7 billion, ahead of the Zacks Consensus Estimate of $52.9 billion.
Uber saw a 17% increase in its monthly active platform consumers to 199 million users in the March quarter. The platform recorded 3.64 billion trips, marking a 20% year-over-year rise, driven by both ride-hailing and delivery services.
The earnings beat by Uber in the March quarter meant that its impressive earnings surprise record continued. Uber has reported a positive earnings surprise in three of the past four quarters (and the metric was negative in the other quarter). The average beat is 89.6%.
Uber Technologies Price and EPS Surprise
Uber Technologies price-eps-surprise | Uber Technologies Quote
More than the first-quarter numbers, it was the second-quarter gross bookings forecast that pleased investors. Shares of the ride-hailing giant have gained 3% so far post the earnings release.
Despite the ongoing tensions in the Middle East and the resultant fuel price spike, gross bookings are projected in the range of $56.25-$57.75 billion, highlighting growth of 18% to 22% year over year on a constant-currency basis. The outlook assumes a roughly 2 percentage-point currency tailwind to total reported year-over-year growth.
Adding to the bullishness, management expects June quarter earnings to grow in the 31-38% band year over year. As a result, second-quarter earnings per share are expected in the 78-82 cents band.
Despite the uptick, following the first-quarter earnings beat, Uber’s price performance is disappointing so far this year, lagging the Zacks Internet-Services industry. Uber’s shares have dropped primarily on concerns regarding competition in the robotaxi and autonomous driving space.
The Case for LYFT
On May 7, Lyft released its first-quarter 2026 earnings report. Quarterly earnings per share of 21 cents missed the Zacks Consensus Estimate of 31 cents but increased 10.5% year over year. Revenues of $1.65 billion beat the Zacks Consensus Estimate by 1.8% and grew 13.8% year over year.
The miss by Lyft in the March quarter meant that its unimpressive earnings surprise record continued. Lyft has reported a negative earnings surprise in each of the past four quarters. The average miss is 53.3%.
Lyft Price and EPS Surprise
Lyft price-eps-surprise | Lyft Quote
In the March quarter, gross bookings increased 19% year over year to $4.9 billion. This was the 20th consecutive quarter where Lyft demonstrated double-digit year-on-year growth in the key metric, demonstrating the resilience and momentum of its customer-friendly strategy. Active Riders increased 17% year over year to 28.3 million.
For the second quarter of 2026, Lyft anticipates gross bookings to grow 18-21% year over year, reaching $5.3-$5.43 billion. The company expects adjusted EBITDA to be in the band of $160 million and $180 million. Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) for the June quarter is anticipated to be in the range of 3-3.3%.
The loss, however, reported in the quarter seems to have disappointed investors, resulting in the stock declining sharply since the first-quarter earnings release. In fact, Lyft’s shares have performed worse than Uber so far this year.
YTD Price Comparison
Image Source: Zacks Investment Research
Lyft More Attractive Than Uber on Valuation Front
Lyft is trading at a forward sales multiple of 0.65X, comparing favorably to Uber’s 2.5X. LYFT has a Value Score of B, compared with UBER’s C.
End Note
Uber’s strong focus on strategic diversification and shareholder-friendly initiatives remains a key advantage. Supported by a solid market capitalization of $152.85 billion, the company appears well-equipped to withstand the current macroeconomic uncertainty. Uber’s diversification efforts — including acquisitions, global expansion and innovative service offerings — have been instrumental in mitigating risks and strengthening its competitive position.
It is true that Lyft, like Uber, continues to benefit from healthy gross bookings. However, Lyft’s weaker earnings surprise and relatively subdued stock performance compared with Uber place it at a disadvantage. Based on our analysis, Uber clearly stands out as the stronger contender in this comparison with Lyft. Therefore, it is reasonable to conclude that Uber is better positioned than Lyft following their respective first-quarter 2026 earnings releases.
Lyft currently carries a Zacks Rank #5 (Strong Sell) and Uber has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.