By Uber closed the year with revenue that exceeded market expectations, underlining steady demand across its ride-hailing and delivery businesses even as investors focused on softer profitability and cautious near-term signals.
The fourth-quarter report shows how Uber is increasingly relying on delivery, subscriptions, and platform expansion to balance its core mobility business, while positioning itself for longer-term shifts such as autonomous vehicles and artificial intelligence-led discovery.
Revenue for the quarter rose to $14.37 billion, edging past analyst estimates of $14.32 billion.
That marked a solid increase from $12 billion in the same period a year earlier, reflecting continued user growth and higher activity across multiple services.
Adjusted earnings were reported at 71 cents per share, while the company said demand remained resilient across both riders and consumers ordering through its app.
The Uber stock was down over 5% in premarket trading on Wednesday.
Inside Uber’s earnings report
Uber’s mobility segment generated $8.2 billion in revenue during the quarter, up 19% year on year.
While this fell slightly short of StreetAccount’s expectations of $8.3 billion, the growth highlights sustained usage of ride-hailing services across major markets.
Delivery emerged as the standout performer. Revenue from the segment climbed 30% to $4.9 billion, comfortably above forecasts of $4.72 billion.
The delivery business has expanded well beyond restaurant orders, with groceries and retail becoming a larger part of the mix and helping smooth demand patterns across the year.
Gross bookings reached $54.1 billion for the quarter, topping analyst estimates of $53.1 billion and signalling robust activity on the platform.
Uber said it expects first-quarter gross bookings to rise at least 17% from a year earlier, with guidance set between $52 billion and $53.5 billion.
Net income, however, dropped sharply to $296 million from $6.88 billion a year earlier.
The company said the decline was driven by a $1.6 billion net pre-tax headwind linked to revaluations of its equity investments, rather than a deterioration in underlying operations.
The weakness in headline profit contributed to a cautious market reaction despite the revenue beat.
Partnerships power delivery expansion
Delivery was the fastest-growing business line in the quarter, supported by a growing web of partnerships.
Uber has broadened its delivery offering through tie-ups with platforms such as OpenTable and Shopify, while also working with large retailers.
Store brands, including Loblaws in Canada, Biedronka in Poland, Seiyu in Japan, and Coles in Australia, helped drive order volumes and expand Uber’s reach into everyday shopping.
In prepared remarks released ahead of the earnings call, CEO Dara Khosrowshahi said delivery growth last year was strongest in Europe, the Middle East, and Africa, highlighting the segment’s increasing geographic breadth.
Subscriptions, autonomy, and AI focus
Beyond delivery, Uber continues to push its Uber One subscription programme, where members tend to book more rides and place more orders once enrolled.
The company is also investing in its advertising business, aiming to monetise traffic across its app more effectively.
Uber’s earnings arrived amid a broader industry transition as autonomous vehicles gain traction in urban markets.
Khosrowshahi reiterated that autonomous technology could unlock a multi-trillion-dollar opportunity over time.
In cities such as Atlanta and Austin, Texas, where Uber offered autonomous rides in 2025, the company said overall trip growth accelerated, including trips completed by human drivers.
In San Francisco, where Uber does not yet run its own robotaxi service, the company said the addition of autonomous supply in the wider market has expanded overall ride-hailing demand.
Alphabet’s Waymo has operated a driverless ride-hailing service via its own app in the city since 2024, with some markets offering Waymo rides exclusively through Uber’s platform.
By the end of 2026, Uber expects to facilitate autonomous vehicle trips in up to 15 cities globally, spanning the US and international markets.
Planned locations include Houston, Los Angeles, San Francisco, London, Munich, Hong Kong, Zurich, and Madrid.
The company has also begun integrating generative AI tools, including ChatGPT, to help users discover services and restaurants before completing bookings, as it looks to expand engagement across its platform.
The post Uber outpaces revenue forecasts: why is the stock tanking over 5% appeared first on Invezz
