Uber drops after Q1 profit guidance underwhelms
The company’s Q4 results were solid enough, with bookings marginally ahead of expectations and adjusted EBITDA in line with estimates.
Uber fell sharply in premarket trading on Wednesday after the ride-hailing company’s guidance for Q1 earnings overshadowed what was a fairly solid set of numbers for the quarter ended December 31, 2025.
For Q4 2025, the company reported:
Adjusted earnings per share of $0.71, coming in marginally below Wall Street expectations of $0.72 (consensus compiled by Bloomberg).
Revenue of $14.37 billion, slightly above the $14.29 billion estimated by analysts.
Bookings of $54.14 billion, about $1 billion ahead of estimates.
Looking ahead, Uber also shared diluted EPS guidance of $0.65 to $0.72, below analyst forecasts for $0.76. Gross booking predictions were on the rosier side, with Uber expecting bookings to come in between $52 billion and $53.5 billion, ahead of expectations for $51.4 billion. Implicitly, the company appears to be expecting somewhat softer margins than Wall Street was hoping for, which is likely to be what’s weighing most heavily on the shares, down 5.2% as of 8 a.m. ET.
In November, the company said that it was deliberately moderating its margin growth pace by investing in affordable, low-cost products to boost mobility growth. Despite growing concerns about the company’s profitability, Balaji Krishnamurthy, Uber’s incoming CFO, commented that the company remains “solidly on track to deliver on our three-year growth and profit outlook,” per the company’s press release.
