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UBER Q3 Earnings Miss Estimates on Investment Loss, Revenue Beat
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Key Takeaways
Uber's Q3 EPS missed estimates by 73.4% due to investment losses, while revenues rose 9.6% to $14.77B.
Gross bookings surged 20% to $59.82B, driven by higher trip volumes and growing consumer engagement.
Uber's adjusted EBITDA rose 31% to $2.96B, while Q4 gross bookings are projected to be $63.25BjQuery37102530741463149069_1793815493354?$65.25B.
Uber Technologies, Inc. (UBER - Free Report) reported mixed third-quarter 2026 results, wherein earnings missed the Zacks Consensus Estimate while revenues surpassed the mark.
Quarterly earnings of 25 cents per share missed the Zacks Consensus Estimate of 94 cents by 73.4%. The figure declined 92% from $3.11 in the year-ago quarter. Revenues increased 9.6% year over year to $14.77 billion and surpassed the consensus estimate of $14.74 billion by 0.2%.
Gross bookings increased 20% year over year to $59.82 billion, supported by higher trip volumes and expanding consumer engagement. A loss from equity investment revaluations weighed on reported earnings.
Uber Technologies, Inc. Price, Consensus and EPS Surprise
Gross bookings increased 20% year over year on both a reported and constant-currency basis. Mobility gross bookings rose 18% year over year to $29.51 billion, reflecting continued demand across the company's ride-hailing platform.
Delivery gross bookings increased 22% year over year to $28.54 billion, while Freight bookings surged 35% to $1.77 billion. On a constant-currency basis, Delivery bookings grew 23%, while Mobility bookings increased 17%.
Trips increased 16% year over year to 4.06 billion. Monthly active platform consumers, representing users completing at least one Mobility ride or Delivery order during a month, increased 14% to 215 million. Monthly trips per active consumer improved 2%, reflecting higher platform engagement.
Mobility revenues declined 2% year over year on both a reported and constant-currency basis to $7.52 billion. Business model changes affected reported revenue growth despite the expansion in underlying transaction volumes.
Mobility segment operating income increased 27% year over year to $2.36 billion from $1.86 billion. The improvement reflected stronger profitability despite the decline in reported revenues.
Mobility remained Uber's largest revenue-generating business. Higher segment earnings also supported the company's overall operating performance during the quarter.
UBER's Delivery and Freight Businesses Expand
Delivery revenues jumped 23% year over year on both a reported and constant-currency basis to $5.49 billion. The segment benefited from expanding platform activity and continued growth in consumer demand.
Delivery segment operating income increased 30% year over year to $1.06 billion from $811 million. Profit growth exceeded revenue growth, reflecting improved segment profitability.
Freight revenues surged 34% year over year to $1.76 billion. The segment's operating loss narrowed to $33 million from $40 million in the year-ago quarter, indicating progress despite continued losses.
Uber's Operating Profits Improve, Net Income Falls
Total costs and expenses increased 7.8% year over year to $13.32 billion. Sales and marketing expenses rose 22.4% to $1.56 billion, while research and development expenses increased 47.7% to $1.27 billion.
GAAP income from operations increased 30% year over year to $1.45 billion. The GAAP operating margin expanded to 9.8% from 8.3% in the year-ago quarter.
Non-GAAP operating income increased 38% to $2.30 billion, with the corresponding margin as a percentage of gross bookings improved to 3.9% from 3.4%.
Adjusted EBITDA increased 31% year over year to $2.96 billion. Adjusted EBITDA margin, as a percentage of gross bookings, improved to 5% from 4.5%.
GAAP net income attributable to Uber declined to $512 million from $6.63 billion, reflecting a $476 million pretax loss from equity investment revaluations. Year-ago results included substantial benefits from tax valuation allowance releases and investment revaluations.
UBER's Liquidity and Cash Flow Position
Uber exited the third quarter with unrestricted cash, cash equivalents and short-term investments of $10.1 billion. Long-term debt, net of the current portion, was $15.66 billion compared with $10.52 billion at the end of December 2025.
Net cash provided by operating activities increased 13% year over year to $2.64 billion. Free cash flow improved 14% to $2.54 billion.
The company repurchased $750 million of common stock during the reported quarter. During the first nine months of 2026, total share repurchases amounted to $4.28 billion.
Uber Issues Fourth-Quarter 2026 Outlook
For the fourth quarter of 2026, Uber anticipates gross bookings between $63.25 billion and $65.25 billion. The guidance implies constant-currency growth of 18-22% year over year, with an anticipated currency headwind of approximately 1 percentage point to reported growth.
Non-GAAP earnings are projected to be between 95 cents and 99 cents per share, representing year-over-year growth of 34-39%. Adjusted EBITDA is expected to be in the range of $3.13 billion to $3.23 billion.
Uber continues to invest in autonomous vehicle operations. Management expects approximately 700 fully driverless vehicles on its platform by the end of 2026 and more than 2,000 in 2027.
Uber’s main competitor, Lyft (LYFT - Free Report) , is scheduled to report its third-quarter 2026 results on Nov. 5. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
We expect Lyft's performance in the to-be-reported quarter to have been boosted by an uptick in total revenues. Its top-line growth is likely to have been driven by an increase in active riders as the ride-share market rebounds from the pandemic lows. However, high inflation might hurt results in the to-be-reported quarter.
Q3 Performance of Another Stock Belonging to UBER’s Industry
Alphabet Inc.(GOOGL - Free Report) emphasized accelerating artificial intelligence (AI) adoption, surging cloud demand and expanding AI monetization during its third-quarter 2026 earnings call. Management highlighted record Google Cloud growth while addressing infrastructure investments and mounting pressure on free cash flow.
Alphabet reported earnings of $2.12 per share, missing the Zacks Consensus Estimate of $2.94. Net revenues of $111.21 billion missed the estimate of $111.8 billion.
View the Zacks #1 Rank List
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UBER Q3 Earnings Miss Estimates on Investment Loss, Revenue Beat
Key Takeaways
Uber Technologies, Inc. (UBER - Free Report) reported mixed third-quarter 2026 results, wherein earnings missed the Zacks Consensus Estimate while revenues surpassed the mark.
Quarterly earnings of 25 cents per share missed the Zacks Consensus Estimate of 94 cents by 73.4%. The figure declined 92% from $3.11 in the year-ago quarter. Revenues increased 9.6% year over year to $14.77 billion and surpassed the consensus estimate of $14.74 billion by 0.2%.
Gross bookings increased 20% year over year to $59.82 billion, supported by higher trip volumes and expanding consumer engagement. A loss from equity investment revaluations weighed on reported earnings.
Uber Technologies, Inc. Price, Consensus and EPS Surprise
Uber Technologies, Inc. price-consensus-eps-surprise-chart | Uber Technologies, Inc. Quote
UBER's Bookings and Engagement Maintain Momentum
Gross bookings increased 20% year over year on both a reported and constant-currency basis. Mobility gross bookings rose 18% year over year to $29.51 billion, reflecting continued demand across the company's ride-hailing platform.
Delivery gross bookings increased 22% year over year to $28.54 billion, while Freight bookings surged 35% to $1.77 billion. On a constant-currency basis, Delivery bookings grew 23%, while Mobility bookings increased 17%.
Trips increased 16% year over year to 4.06 billion. Monthly active platform consumers, representing users completing at least one Mobility ride or Delivery order during a month, increased 14% to 215 million. Monthly trips per active consumer improved 2%, reflecting higher platform engagement.
Uber's Mobility Revenues Decline Despite Bookings Growth
Mobility revenues declined 2% year over year on both a reported and constant-currency basis to $7.52 billion. Business model changes affected reported revenue growth despite the expansion in underlying transaction volumes.
Mobility segment operating income increased 27% year over year to $2.36 billion from $1.86 billion. The improvement reflected stronger profitability despite the decline in reported revenues.
Mobility remained Uber's largest revenue-generating business. Higher segment earnings also supported the company's overall operating performance during the quarter.
UBER's Delivery and Freight Businesses Expand
Delivery revenues jumped 23% year over year on both a reported and constant-currency basis to $5.49 billion. The segment benefited from expanding platform activity and continued growth in consumer demand.
Delivery segment operating income increased 30% year over year to $1.06 billion from $811 million. Profit growth exceeded revenue growth, reflecting improved segment profitability.
Freight revenues surged 34% year over year to $1.76 billion. The segment's operating loss narrowed to $33 million from $40 million in the year-ago quarter, indicating progress despite continued losses.
Uber's Operating Profits Improve, Net Income Falls
Total costs and expenses increased 7.8% year over year to $13.32 billion. Sales and marketing expenses rose 22.4% to $1.56 billion, while research and development expenses increased 47.7% to $1.27 billion.
GAAP income from operations increased 30% year over year to $1.45 billion. The GAAP operating margin expanded to 9.8% from 8.3% in the year-ago quarter.
Non-GAAP operating income increased 38% to $2.30 billion, with the corresponding margin as a percentage of gross bookings improved to 3.9% from 3.4%.
Adjusted EBITDA increased 31% year over year to $2.96 billion. Adjusted EBITDA margin, as a percentage of gross bookings, improved to 5% from 4.5%.
GAAP net income attributable to Uber declined to $512 million from $6.63 billion, reflecting a $476 million pretax loss from equity investment revaluations. Year-ago results included substantial benefits from tax valuation allowance releases and investment revaluations.
UBER's Liquidity and Cash Flow Position
Uber exited the third quarter with unrestricted cash, cash equivalents and short-term investments of $10.1 billion. Long-term debt, net of the current portion, was $15.66 billion compared with $10.52 billion at the end of December 2025.
Net cash provided by operating activities increased 13% year over year to $2.64 billion. Free cash flow improved 14% to $2.54 billion.
The company repurchased $750 million of common stock during the reported quarter. During the first nine months of 2026, total share repurchases amounted to $4.28 billion.
Uber Issues Fourth-Quarter 2026 Outlook
For the fourth quarter of 2026, Uber anticipates gross bookings between $63.25 billion and $65.25 billion. The guidance implies constant-currency growth of 18-22% year over year, with an anticipated currency headwind of approximately 1 percentage point to reported growth.
Non-GAAP earnings are projected to be between 95 cents and 99 cents per share, representing year-over-year growth of 34-39%. Adjusted EBITDA is expected to be in the range of $3.13 billion to $3.23 billion.
Uber continues to invest in autonomous vehicle operations. Management expects approximately 700 fully driverless vehicles on its platform by the end of 2026 and more than 2,000 in 2027.
Currently, UBER carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Sectoral Player to Report Q3 results
Uber’s main competitor, Lyft (LYFT - Free Report) , is scheduled to report its third-quarter 2026 results on Nov. 5. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.
We expect Lyft's performance in the to-be-reported quarter to have been boosted by an uptick in total revenues. Its top-line growth is likely to have been driven by an increase in active riders as the ride-share market rebounds from the pandemic lows. However, high inflation might hurt results in the to-be-reported quarter.
Q3 Performance of Another Stock Belonging to UBER’s Industry
Alphabet Inc.(GOOGL - Free Report) emphasized accelerating artificial intelligence (AI) adoption, surging cloud demand and expanding AI monetization during its third-quarter 2026 earnings call. Management highlighted record Google Cloud growth while addressing infrastructure investments and mounting pressure on free cash flow.
Alphabet reported earnings of $2.12 per share, missing the Zacks Consensus Estimate of $2.94. Net revenues of $111.21 billion missed the estimate of $111.8 billion.