Uber's second-quarter bookings and earnings matched or beat Wall Street's targets, but its third-quarter forecast for both metrics came in below estimates, and the stock fell. The company is also pressing ahead with autonomous-vehicle investment even as early partner Waymo prepares to end an exclusivity deal in two U.S. cities.
Uber shares dropped after the company issued third-quarter bookings and earnings guidance that trailed Wall Street's targets, overshadowing a second quarter in which gross bookings beat estimates. The forecast miss pulled the stock lower even though most of the reported quarter's numbers came in ahead of or in line with expectations.
Second-quarter bookings top estimates, revenue narrowly misses
Second-quarter revenue rose 12% to $14.19 billion from $12.65 billion a year earlier, falling just short of the $14.24 billion analysts polled by LSEG had projected. Adjusted earnings of 81 cents a share matched the average LSEG estimate. IBD separately reported the same 81-cent figure beat an 80-cent forecast from analysts polled by FactSet.
Net income climbed to $2.39 billion, or $1.17 a share, from $1.35 billion, or 63 cents a share, a year ago. Total gross bookings reached $58 billion, up 24% from a year earlier, topping the $57.23 billion average estimate tracked by StreetAccount.
Third-quarter forecast trails Wall Street
For the current quarter, Uber said it expects bookings of $59.25 billion at the midpoint of its range, below the $59.33 billion average estimate compiled by StreetAccount. CNBC reported the company's earnings guidance of 84 cents to 88 cents a share fell below an 89-cent average analyst estimate from LSEG. IBD separately reported Uber's forecast of 86 cents a share compared with an 87-cent Street estimate.
Robotaxi investment continues as Waymo pulls back
Uber said it expects to commit more than $10 billion in coming years to bring autonomous vehicles to market at scale. According to CNBC, CEO Dara Khosrowshahi said Uber is building "one of the most valuable positions in the AV ecosystem." That comes as Uber and Waymo agreed to end their exclusivity arrangement in Atlanta and Austin by early 2028.
IBD reported investors remain uneasy about robotaxi competition and Uber's ability to keep pace with Waymo. Earlier the same day, Uber announced approval to offer supervised robotaxi rides in London through a partnership with Wayve, and shares initially rose on that news before reversing lower after the earnings results.
Shares slide as year-to-date losses widen
Uber shares are down 12% this year as of Tuesday's close, while the Nasdaq is up 14% over that stretch. IBD reported the stock fell 3.3% in premarket trading, slipping just below 72, and is down 11% year-to-date and 30% below its September 2025 record high of 101.99. Uber is also pushing into deliveries: last month it agreed to acquire Germany's Delivery Hero for $14.8 billion, a deal that will expand the markets where it can deliver food and groceries.
Sources: CNBC, Investor's Business Daily
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