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Buy, Hold or Sell Uber Stock Before Q3 Earnings Release?
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Key Takeaways
Uber is set to report Q3 earnings on Nov. 4, with EPS expected to fall 69.8% despite 9.4% revenue growth.
Foreign exchange headwinds, high fuel costs and AV investments may weigh on Uber's Q3 results.
Uber's shares have fallen over 12% in six months, while rising competition and debt levels warrant caution.
Uber Technologies (UBER - Free Report) is slated to release third-quarter 2026 results on Nov. 4, before the market opens. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 94 cents and $14.74 billion, respectively.
The earnings estimate for the to-be-reported quarter has decreased more than 7% over the past 60 days. The bottom-line estimate indicates a 69.8% year-over-year decline. The Zacks Consensus Estimate for quarterly revenues implies 9.4% growth from the year-ago quarter’s figure.
Image Source: Zacks Investment Research
For full-year 2026, the Zacks Consensus Estimate for Uber’s revenues is pegged at $57.9 billion, indicating an 11.3% improvement from the 2025 actuals. The consensus mark for full-year earnings per share is pinned at $3.19, implying a 39.8% decline from the prior-year actual. The consensus mark for 2027 earnings per share points to a 42.7% increase from the projected 2026 levels.
Notably, Uber’s earnings surpassed estimates in three of the past four quarters, missing the mark once, with the average surprise being 99.5%.
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Uber currently has an Earnings ESP of +7.77% and a Zacks Rank #4 (Sell).
Foreign exchange woes are likely to have hurt Uber’s gross bookings in the September quarter. For the third quarter, Uber expects gross bookings in the band of $58.25-$60.25 billion. The mid-point of the guided range is a tad below the Zacks Consensus Estimate of $59.7 billion. Unlike the previous few quarters, foreign exchange is likely to trim the metric by roughly 1 percentage point.
Despite that, the gross bookings forecast implies 18% to 22% year-over-year growth on a constant-currency basis. Adjusted EBITDA is forecasted in the $2.86-$2.96 billion band. Third-quarter adjusted earnings per share are expected in the band of 80-84 cents.
Moreover, tariff-related headwinds are likely to hurt results. High fuel costs might have hurt the bottom-line performance in the to-be-reported quarter. We believe that more than the financial numbers, it is the guidance that investors will watch closely. Uber has been focusing on autonomous vehicles to drive growth. High costs pertaining to AV expansion might have hurt the bottom line in the to-be-reported quarter. The company is expected to provide further updates on this on the third-quarter conference call.
Notable Deals During the Quarter
In September, Uber, WeRide (WRD - Free Report) and AVOMO, the autonomous vehicle division of Moove Cars Group, secured Spain’s first national permit for Level 4 autonomous passenger vehicles to operate on public roads. Granted by Spain’s Directorate General of Traffic under the ES-AV framework and supported by the Regional Government of Madrid, the authorization represents a key regulatory step toward launching the country’s first commercial autonomous vehicle service.
Spain is one of Europe’s largest urban mobility markets, serving millions of residents and visitors annually. The planned rollout marks WeRide and Uber’s joint entry into Spain and Madrid’s inclusion as the fourth of 15 cities covered by their strategic partnership. The approval represents WeRide’s ninth autonomous-driving permit globally and strengthens Madrid’s role as a gateway for its broader European expansion.
During the quarter, Uber and Costco (COST - Free Report) significantly expanded their U.S. partnership, making the latter delivery through Uber Eats available to millions of additional customers across 47 states, compared with 17 states previously. Nearly 600 Costco locations are now accessible through the Uber Eats platform, offering both on-demand and scheduled delivery services. Uber Eats is the online food ordering and delivery platform of Uber.
Costco members can use Uber Eats to order a broad range of products, including fresh produce, bulk groceries, household essentials and Costco-exclusive merchandise. The expanded service provides members with another convenient option for completing weekly shopping, preparing for gatherings or addressing last-minute needs.
UBER’s Price Performance & Valuation
Shares of Uber have declined in excess of 12% over the past six months, and underperformed the Zacks Internet-Services industry.
6-Month Price Comparison
Image Source: Zacks Investment Research
From a valuation perspective, Uber is trading at a lower level compared with its industry. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 15.1, below the industry’s 23.01. The company has a Value Score of C.
Image Source: Zacks Investment Research
How to Play Uber Pre-Q3 Earnings
Uber’s diversification efforts and shareholder-focused approach merit appreciation. Diversification plays a crucial role in reducing risk for large enterprises, and Uber has executed this strategy effectively. Its growing international presence is especially important, as it further diversifies revenue sources across geographies. Strategic investments have also helped Uber expand its offerings and enhance the overall value proposition.
However, rising competition in the robotaxi and autonomous driving space continues to be a key concern. At the same time, higher operating costs, a challenging macroeconomic environment and increasing debt levels remain meaningful headwinds that warrant attention.
Given these headwinds, investors may be better off avoiding or selling Uber stock ahead of its third-quarter report.
View the Zacks #1 Rank List
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Buy, Hold or Sell Uber Stock Before Q3 Earnings Release?
Key Takeaways
Uber Technologies (UBER - Free Report) is slated to release third-quarter 2026 results on Nov. 4, before the market opens. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share and revenues is pegged at 94 cents and $14.74 billion, respectively.
The earnings estimate for the to-be-reported quarter has decreased more than 7% over the past 60 days. The bottom-line estimate indicates a 69.8% year-over-year decline. The Zacks Consensus Estimate for quarterly revenues implies 9.4% growth from the year-ago quarter’s figure.
For full-year 2026, the Zacks Consensus Estimate for Uber’s revenues is pegged at $57.9 billion, indicating an 11.3% improvement from the 2025 actuals. The consensus mark for full-year earnings per share is pinned at $3.19, implying a 39.8% decline from the prior-year actual. The consensus mark for 2027 earnings per share points to a 42.7% increase from the projected 2026 levels.
Notably, Uber’s earnings surpassed estimates in three of the past four quarters, missing the mark once, with the average surprise being 99.5%.
Uber Technologies Price and EPS Surprise
Uber Technologies, Inc. price-eps-surprise | Uber Technologies, Inc. Quote
Earnings Whispers for Q3
Our proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Uber currently has an Earnings ESP of +7.77% and a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
Foreign exchange woes are likely to have hurt Uber’s gross bookings in the September quarter. For the third quarter, Uber expects gross bookings in the band of $58.25-$60.25 billion. The mid-point of the guided range is a tad below the Zacks Consensus Estimate of $59.7 billion. Unlike the previous few quarters, foreign exchange is likely to trim the metric by roughly 1 percentage point.
Despite that, the gross bookings forecast implies 18% to 22% year-over-year growth on a constant-currency basis. Adjusted EBITDA is forecasted in the $2.86-$2.96 billion band. Third-quarter adjusted earnings per share are expected in the band of 80-84 cents.
Moreover, tariff-related headwinds are likely to hurt results. High fuel costs might have hurt the bottom-line performance in the to-be-reported quarter. We believe that more than the financial numbers, it is the guidance that investors will watch closely. Uber has been focusing on autonomous vehicles to drive growth. High costs pertaining to AV expansion might have hurt the bottom line in the to-be-reported quarter. The company is expected to provide further updates on this on the third-quarter conference call.
Notable Deals During the Quarter
In September, Uber, WeRide (WRD - Free Report) and AVOMO, the autonomous vehicle division of Moove Cars Group, secured Spain’s first national permit for Level 4 autonomous passenger vehicles to operate on public roads. Granted by Spain’s Directorate General of Traffic under the ES-AV framework and supported by the Regional Government of Madrid, the authorization represents a key regulatory step toward launching the country’s first commercial autonomous vehicle service.
Spain is one of Europe’s largest urban mobility markets, serving millions of residents and visitors annually. The planned rollout marks WeRide and Uber’s joint entry into Spain and Madrid’s inclusion as the fourth of 15 cities covered by their strategic partnership. The approval represents WeRide’s ninth autonomous-driving permit globally and strengthens Madrid’s role as a gateway for its broader European expansion.
During the quarter, Uber and Costco (COST - Free Report) significantly expanded their U.S. partnership, making the latter delivery through Uber Eats available to millions of additional customers across 47 states, compared with 17 states previously. Nearly 600 Costco locations are now accessible through the Uber Eats platform, offering both on-demand and scheduled delivery services. Uber Eats is the online food ordering and delivery platform of Uber.
Costco members can use Uber Eats to order a broad range of products, including fresh produce, bulk groceries, household essentials and Costco-exclusive merchandise. The expanded service provides members with another convenient option for completing weekly shopping, preparing for gatherings or addressing last-minute needs.
UBER’s Price Performance & Valuation
Shares of Uber have declined in excess of 12% over the past six months, and underperformed the Zacks Internet-Services industry.
6-Month Price Comparison
From a valuation perspective, Uber is trading at a lower level compared with its industry. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 15.1, below the industry’s 23.01. The company has a Value Score of C.
How to Play Uber Pre-Q3 Earnings
Uber’s diversification efforts and shareholder-focused approach merit appreciation. Diversification plays a crucial role in reducing risk for large enterprises, and Uber has executed this strategy effectively. Its growing international presence is especially important, as it further diversifies revenue sources across geographies. Strategic investments have also helped Uber expand its offerings and enhance the overall value proposition.
However, rising competition in the robotaxi and autonomous driving space continues to be a key concern. At the same time, higher operating costs, a challenging macroeconomic environment and increasing debt levels remain meaningful headwinds that warrant attention.
Given these headwinds, investors may be better off avoiding or selling Uber stock ahead of its third-quarter report.