Uber stock fell 6.1% in morning trading after the ride-hailing and delivery company reported second-quarter results that broadly matched profit expectations but provided third-quarter guidance below analyst forecasts. The firm forecast Q3 non-GAAP earnings per share in a range of $0.84 to $0.88, with the midpoint coming in under the $0.89 consensus. Uber also projected gross bookings of $58.25 billion to $60.25 billion for the quarter, narrowly under the $59.33 billion average analyst estimate.
The Q2 earnings release presented a mix of stronger and weaker metrics. Adjusted EPS of $0.81 met estimates, and gross bookings jumped 24% year-over-year to $58.02 billion. Net income rose 77% to $2.39 billion. Revenue, however, came in at $14.19 billion, slightly below the $14.24 billion forecast. Those near-miss revenue figures, combined with the softer forward outlook, helped push the stock lower.
Compounding investor concern, Uber revealed plans to commit more than $10 billion toward autonomous vehicle commercialization over the coming years. That scale of planned investment raised questions about near-term capital discipline for some market participants. Uncertainty around Uber’s strategic partnerships also weighed on sentiment - reports suggesting Waymo may seek to exit its arrangement with Uber remained a persistent overhang following the results.
Uber is also advancing a major acquisition while navigating these strategic questions. The company’s pending $14.8 billion acquisition of Delivery Hero continues to be a focal point for investors as they reassess Uber’s capital allocation and growth priorities.
There were a few constructive notes in the release and surrounding coverage. BMO Capital reiterated its Outperform rating ahead of the earnings announcement. Separately, Transport for London’s decision to grant private hire vehicle licenses to Wayve, Uber’s U.K. autonomous vehicle partner, provided a modestly positive signal for the company’s international AV efforts.
Market context underscored that the weakness in Uber shares was company-specific rather than broadly market-driven. The S&P 500 edged up 0.3%, the Dow Jones Industrial Average gained 1.1%, and the Nasdaq traded roughly flat on the same day, indicating the pressure on Uber was concentrated on the stock.
Taken together, a below-consensus forward outlook, a sizable autonomous-vehicle capital commitment, partnership uncertainty, and a pending large-scale acquisition led investors to push Uber’s shares down toward the company’s recent lows. The stock moved to about $67.58, approaching its 52-week low of $65.41 and trading roughly 34% below its 52-week high of $101.99 as market participants reassessed near-term earnings trajectory amid a more complicated strategic picture.
Key metrics from the report:
- Q2 adjusted EPS: $0.81 (in line with estimates)
- Q2 gross bookings: $58.02 billion (up 24% year-over-year)
- Q2 revenue: $14.19 billion (vs $14.24 billion expected)
- Q2 net income: $2.39 billion (up 77%)
- Q3 non-GAAP EPS guidance: $0.84 to $0.88 (midpoint below $0.89 consensus)
- Q3 gross bookings outlook: $58.25 billion to $60.25 billion (vs $59.33 billion consensus)
- Planned commitment to AV commercialization: more than $10 billion
- Pending acquisition: Delivery Hero for $14.8 billion