Uber Stock Slides After Earnings Miss Despite Revenue Growth

TLDR

• Uber reported Q4 adjusted earnings of 71 cents per share, missing Wall Street estimates of 85 cents
• Revenue increased 19% to $14.4 billion, beating forecasts of $14.3 billion
• Q1 earnings guidance of 65-72 cents per share falls below analyst expectations of 81 cents
• Uber expanding robotaxi services to Hong Kong, Madrid, Houston, and Zurich
• Stock dropped 8.5% to $71.32, down 22% from October record high of $100.10

Uber Technologies reported fourth-quarter earnings that disappointed investors despite strong revenue growth. The ride-hailing company posted adjusted earnings of 71 cents per share, falling well short of the 85-cent consensus estimate from analysts.

Shares tumbled 8.5% to $71.32 on Wednesday following the announcement. The stock has now declined 22% from its record closing high of $100.10 reached on October 6.

Uber Technologies, Inc., UBER

Revenue told a different story. Uber brought in $14.4 billion for the quarter, up 19% from last year on a constant currency basis. That figure topped Wall Street’s projection of $14.3 billion.

The earnings miss came down to pricing strategy. Uber lowered prices to boost trip volume, which squeezed profit margins. The approach worked for growth, with total trips jumping 22% during the quarter.

Gross bookings reached $54.1 billion in the fourth quarter, up 22% year-over-year. This marked the third consecutive quarter where Uber exceeded bookings expectations but missed on operating income forecasts.

Weak Guidance Pressures Stock

The first-quarter outlook added to investor concerns. Uber projected adjusted earnings between 65 cents and 72 cents per share, below the 81-cent analyst consensus.

The company expects gross bookings of $52 billion to $53.5 billion for the current quarter. That range sits above Wall Street’s estimate of $51.4 billion.

Robotaxi Expansion Accelerates

Uber announced plans to launch driverless rides in four new cities during its earnings presentation. Hong Kong, Madrid, Houston, and Zurich will soon offer autonomous vehicle services through the platform.

The Hong Kong launch represents Uber’s first robotaxi entry into the Asian market. The company plans to partner with Baidu, which already holds licenses for driverless trials in the city.

For Zurich, Uber will likely work with WeRide, a company that has secured autonomous driving permits in Switzerland. This partnership approach keeps costs down while allowing rapid expansion.

Uber aims to operate autonomous vehicles in more than 10 global markets by the end of 2026. The company didn’t provide specific launch dates but confirmed partnerships with previously announced technology providers.

These partners include Lucid Group for the San Francisco Bay Area and Volkswagen for Los Angeles. Uber positions itself as the platform connecting various autonomous vehicle providers to customers.

The asset-light strategy avoids the massive capital requirements of building and maintaining a proprietary fleet. Instead, Uber leverages existing technology partners to scale quickly.

Analysts maintain a positive outlook on the stock despite the earnings miss. The consensus rating stands at Strong Buy based on 28 Buy ratings, three Hold ratings, and one Sell rating.

The average 12-month price target of $112.31 suggests 44% upside potential from current levels. Over the past year, the stock has gained 11.7%.

Shares hit their lowest level since April 2025 in Tuesday’s trading session before the earnings release. The stock remains down 22% from its October peak as investors weigh growth investments against near-term profitability.

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