Uber (UBER) 2026 Q1 earnings
Uber reported Wednesday that its first-quarter revenue missed estimates, but the ride-hailing giant issued booking guidance for the current quarter that beat analysts’ expectations.
The stock rose 5% following the earnings release.
According to estimates compiled by LSEG, the company’s performance against Wall Street expectations is as follows:
- Earnings per share: 70 cents expected versus 13 cents
- Revenues: 13.2 billion dollars, while the expectation was 13.29 billion dollars
Uber said its net income took a $1.5 billion hit due to the revaluation of equity investments. Earnings per share on a non-GAAP basis came to 72 cents, the company said. earnings release on Wednesday. Uber has equity investments Didi And To captureboth are based in Asia.
Net income fell to $263 million from $1.78 billion a year earlier due to “pre-tax headwinds” from revaluations. Revenue in the quarter was up 14% from $11.5 billion a year earlier.
Uber’s delivery segment, the fastest-growing part of the business, saw revenue growth of 34% to $5.07 billion, up from $3.78 billion in the same quarter last year. That topped analysts’ average estimate of $4.89 billion, according to StreetAccount.
The company said delivery growth was strong in Australia, Japan and the UK
The loss of revenue was due to the performance of Uber’s mobility or ride-hailing business. Analysts expected revenue to be $7.11 billion, according to StreetAccount, while sales rose 5% from the previous year to $6.8 billion.
In prepared remarks ahead of the earnings release, CEO Dara Khosrowshahi said Uber faces “a complex macro environment marked by weather conditions, geopolitical tensions and fluctuations in gas prices.” Gas prices in the United States have increased nearly 50% since the United States began combat operations in Iran in February.
High prices are especially challenging for Uber drivers, who pay the fuel bill. In late March, Uber announced some things fuel discounts and other offers for drivers are scheduled to last almost until the end of May.
The company reported 3.6 billion trips in the first quarter. Gross bookings rose 25% to $53.7 billion, beating the average estimate of $52.8 billion. For the second quarter, the company expects bookings of $56.25 billion to $57.75 billion, above the consensus estimate of $56.17 billion.
Uber is investing in autonomous vehicles and plans to purchase AVs from some of its partners, including Waabi, Wayve, Rivian and Nuro, once the vehicle is certified safe to operate without a human supervisor or driver.
The company’s AV partners also include robotaxi service providers: alphabet China’s Waymo and WeRide want their driverless vehicles to be available through the Uber app.
Khosrowshahi told analysts that Uber’s mobility business is growing faster than its overall business. He expects these headwinds to continue as the company targets Waymo services in 15 cities by the end of 2026.
“We think it’s another trillion dollars [total addressable market]”And we don’t see this as a winner-takes-all market,” he said.
Uber sells services specific to the AV industry, such as insurance, operations and maintenance, and training data.
To reduce costs within the company, Uber has embraced AI for engineering efficiency and is streamlining its hiring. The company said in prepared statements that 95% of its engineers now use AI coding tools on a monthly basis and that more than 10% of the company’s code is “autonomously written by AI coding agents.”
AI helps Uber personalize the app for customers, Khosrowshahi said, and those algorithms can predict three-quarters of rides on the platform.
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