Stock Markets May 29, 2026 03:15 PM

Fitch Elevates Uber to A- as Delivery Profitability and Diversified Mix Strengthen Credit Profile

Rating agency points to broader mobility services, robust delivery margins and cash-flow gains as drivers of upgrade; outlook remains stable

By Sofia Navarro UBER PYPL LYFT

Fitch Ratings raised Uber Technologies, Inc.'s long-term issuer default rating to A- from BBB+, citing an expanded operating mix beyond ride sharing, improving profitability in its delivery business and conservative financial policies. The upgrade included senior and convertible notes and left the short-term rating at F1, with Fitch highlighting lower-than-target EBITDA leverage and materially higher free cash flow forecasts for 2026.

Fitch Elevates Uber to A- as Delivery Profitability and Diversified Mix Strengthen Credit Profile
UBER PYPL LYFT

Key Points

  • Fitch upgraded Uber’s Long-Term IDR to A- from BBB+ and raised senior and convertible notes to A-; short-term ratings remain at F1.
  • Improved delivery margins (19.0% in Q1 2026) and an expanded mobility and advertising mix underpin the upgrade, with Uber One exceeding 50 million members.
  • Fitch estimates a substantial free cash flow improvement to about $9 billion in 2026 and sees EBITDA leverage below 1.75x, supporting financial flexibility.

Fitch Ratings raised Uber Technologies, Inc.'s (NYSE:UBER) Long-Term Issuer Default Rating to A- from BBB+ on Friday, attributing the move to a broader operating profile and stronger profitability in the company’s delivery operations. Fitch set the rating outlook as stable. Alongside the issuer rating, the agency upgraded Uber’s senior and convertible notes to A- from BBB+ and reaffirmed its Short-Term IDR and commercial paper rating at F1.

In explaining the upgrade, Fitch pointed to continued revenue expansion across both Uber’s delivery and mobility units combined with what it called a conservative financial policy. The agency estimates Uber’s EBITDA leverage to be below 1.75x, which Fitch notes sits under the company’s stated target of keeping leverage below 2x. Fitch also emphasized the company’s free cash flow generation as providing flexibility to pursue strategic initiatives and to support shareholder returns.

Fitch underscored Uber’s shift beyond its ride-sharing roots into a range of mobility services, and highlighted the growth of its membership product: Uber One surpassed 50 million members in first quarter 2026. The delivery business showed notable margin improvement, with a non-GAAP operating margin of 19.0% in first quarter 2026. That segment accounted for about 32% of non-GAAP operating income before corporate overhead, according to Fitch.

The rating agency projected a marked improvement in cash generation for the company, estimating free cash flow of roughly $9 billion in 2026. That represents a swing from a deficit of $1 billion in 2021, as cited by Fitch.

Uber’s advertising initiative, launched in-app in 2024, has also contributed to revenue diversification. In its fourth quarter 2025 earnings release the company reported that advertising had reached an annual revenue run rate exceeding $2 billion. Fitch expects Uber to sustain disciplined capital allocation as it balances investments in growth and new technologies with shareholder return programs.

Autonomous vehicles remain a strategic priority for Uber; Fitch noted the company’s investments span self-driving technology partners, original equipment manufacturers and enabling infrastructure. The agency also placed Uber in a peer cohort that includes Block, Inc. (NYSE:SQ), PayPal Holdings, Inc. (NASDAQ:PYPL) and Constellation Software, Inc. (TSX:CSU) for comparative purposes.

Fitch observed that Uber’s revenue scale is nearly double Block’s and has exceeded PayPal’s. It also found Uber’s EBITDA leverage to be at a similar level to PayPal’s. Among more direct competitors, Uber’s 2025 revenue scale was 8.2 times that of Lyft, Inc. and 3.8 times that of DoorDash, Inc., figures Fitch used to contextualize Uber’s market position.


Implications

The upgrade reflects credit recognition of a more diversified revenue mix and materially improved cash flows tied to delivery profitability and advertising growth. It also signals Fitch’s confidence in Uber’s commitment to maintaining leverage below stated targets while deploying capital across growth initiatives and shareholder returns.

Risks

  • Delivery segment margins and contribution to operating income are central to the credit view; any reversal in delivery profitability could affect the upgrade rationale - impacts corporate credit and delivery sector dynamics.
  • Maintaining EBITDA leverage below company targets is critical; increases in leverage could alter Fitch’s assessment - impacts credit markets and investor perceptions.
  • Capital allocation choices between growth investments, technology (including autonomous vehicles) and shareholder return programs introduce execution uncertainty - impacts technology investment and shareholder return strategies.

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