Share of Uber Technologies (UBER) slipped 4% in pre-market hours after the company issued soft earnings guidance for the current quarter, overshadowing its stronger-than-expected Q3 results. For the third quarter, Uber reported earnings per share (EPS) of $3.11, easily surpassing analyst estimates of $0.69. Meanwhile, revenue climbed 19% year over year to $13.47 billion, also topping the $13.26 billion expected by analysts.
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For the fourth quarter, Uber expects gross bookings between $52.25 billion and $53.75 billion, roughly in line with the market forecast of $52.33 billion. However, it projects adjusted EBITDA between $2.41 billion and $2.51 billion, with the midpoint coming in slightly below analyst expectations of $2.49 billion.
Uber Reports Strong Growth in Trips and Bookings
Uber posted its strongest quarterly growth since late 2023, driven by higher-than-expected demand for rides and deliveries. Growth was also fueled by students returning to school and stricter return-to-office mandates that increased city commutes. The results suggest that Uber’s push to expand its services and geographic reach is paying off.
Notably, trips climbed 22% year over year to 3.5 billion, while gross bookings rose 21% to $49.7 billion in Q3. Uber CEO Dara Khosrowshahi praised the results, saying the company’s growth “kicked into high gear in Q3,” marking one of the largest trip-volume increases in its history.
Uber One Drives Holiday Demand
Uber’s membership program, Uber One, helped fuel demand for both rides and deliveries in the lead-up to the busy holiday season. Khosrowshahi said the Uber One membership program has encouraged customers to place more food and grocery orders, highlighting the growing potential of Uber’s services beyond ride-hailing. For context, Uber One is Uber’s paid membership program that offers perks and discounts across both ride-hailing and delivery services.
In Q3, the company’s delivery segment reported a 29% increase in sales for the July–September quarter, outpacing the 20% growth in mobility revenue and the flat performance in its freight division.
Is UBER a Good Stock to Buy Now?
On TipRanks, UBER stock has a Strong Buy consensus based on 27 Buy and 4 Hold ratings. Meanwhile, Uber’s average stock price target of $110.61 implies a 10.92% upside from current levels.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
