Uber Technologies (NYSE:UBER) Trading Down 5.3% Following Weak Earnings

Key Points

• Uber shares fell 5.3% after quarterly adjusted EPS of $0.81 and revenue of $14.19 billion narrowly missed analyst expectations; third-quarter EPS and bookings guidance also came in below forecasts.
• Despite the earnings miss, underlying operations remained strong: gross bookings rose 24% year over year to about $58 billion, trips increased 18%, monthly active users grew 16%, and adjusted EBITDA reached roughly $2.8 billion.
• Investors remain focused on Uber’s substantial robotaxi investment and proposed $14.8 billion Delivery Hero acquisition, which could support future growth but raise capital-allocation and margin concerns amid competitive and partnership uncertainty.

Uber Technologies, Inc. (NYSE:UBER - Get Free Report) was down 5.3% on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $66.74 and last traded at $68.2090. Approximately 49,290,046 shares changed hands during trading, an increase of 153% from the average daily volume of 19,455,404 shares. The stock had previously closed at $71.99.

The ride-sharing company reported $0.81 earnings per share for the quarter, missing the consensus estimate of $0.83 by ($0.02). The company had revenue of $14.19 billion for the quarter, compared to analysts' expectations of $14.24 billion. Uber Technologies had a net margin of 15.91% and a return on equity of 41.40%. The business's quarterly revenue was up 12.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.60 EPS. Uber Technologies has set its Q3 2026 guidance at 0.840-0.880 EPS.

Uber Technologies News Roundup

Here are the key news stories impacting Uber Technologies this week:

• Positive Sentiment: Strong bookings and user growth: Second-quarter gross bookings rose 24% year over year to approximately $58.0 billion, trips increased 18% to 3.9 billion, and monthly active platform consumers grew 16% to 208 million. Adjusted EBITDA reached about $2.8 billion, while operating cash flow was $2.9 billion and trailing free cash flow exceeded $10 billion. Uber Q2 Revenue Rises 12% as GAAP Diluted EPS Hits $1.17
• Positive Sentiment: London robotaxi progress: Transport for London granted licenses for Wayve autonomous vehicles to conduct supervised private-hire rides through Uber’s platform, providing a concrete step toward commercial autonomous mobility. Wayve and Uber Move a Step Closer to Autonomous Rides in London
• Positive Sentiment: Cost discipline in AI: Uber’s CFO said AI spending remained broadly stable as the company uses less expensive models and encourages employees to manage costs, potentially supporting margins as automation expands. Uber Keeps AI Spending Stable Using Cheaper Models
• Neutral Sentiment: CEO Dara Khosrowshahi described drone delivery as a potential “magical experience,” but the opportunity remains longer term and is not yet a material earnings driver. Uber CEO Says 15-Minute Drone Delivery Will Be a Magical Experience
• Negative Sentiment: Weak guidance overshadowed the quarter: Uber reported $14.19 billion in revenue and adjusted EPS of $0.81, slightly below consensus estimates. Third-quarter adjusted EPS guidance of $0.84–$0.88 was below the roughly $0.89 analyst expectation, while bookings guidance was also modestly below forecasts. Foreign-exchange pressure is expected to weigh on growth. Uber Issues Weaker-than-Expected Bookings and Earnings Forecasts
• Negative Sentiment: Higher strategic spending and competition: Uber plans substantial investment in robotaxis while pursuing its $14.8 billion Delivery Hero acquisition, raising concerns about capital allocation and future margins. A slowdown in Brazil linked to local competitors and uncertainty surrounding Waymo’s partnership also cloud Uber’s autonomous-vehicle strategy. Uber Forecasts Weak Quarterly Profit and Doubles Down on Robotaxi Investments

Analyst Upgrades and Downgrades

A number of research firms recently commented on UBER. HSBC cut shares of Uber Technologies to a "reduce" rating in a research note on Monday, May 11th. DA Davidson reissued a "buy" rating and issued a $107.00 price objective on shares of Uber Technologies in a research note on Tuesday, May 26th. Benchmark restated a "hold" rating on shares of Uber Technologies in a research report on Monday, July 20th. Fox Advisors raised Uber Technologies from a "hold" rating to an "outperform" rating in a research note on Monday, May 11th. Finally, Piper Sandler increased their price target on Uber Technologies from $100.00 to $105.00 and gave the stock an "overweight" rating in a report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-one have issued a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat, Uber Technologies currently has a consensus rating of "Moderate Buy" and an average price target of $104.60.

Hedge Funds Weigh In On Uber Technologies

Hedge funds have recently added to or reduced their stakes in the stock. Osbon Capital Management LLC bought a new stake in shares of Uber Technologies in the fourth quarter valued at about $25,000. Nalls Sherbakoff Group LLC purchased a new position in Uber Technologies during the 4th quarter valued at about $25,000. Portus Wealth Advisors LLC purchased a new position in Uber Technologies during the 1st quarter valued at about $25,000. Measured Wealth Private Client Group LLC bought a new stake in shares of Uber Technologies in the 3rd quarter valued at about $25,000. Finally, Lloyd Advisory Services LLC. bought a new stake in shares of Uber Technologies in the 4th quarter valued at about $27,000. 80.24% of the stock is currently owned by institutional investors.

Uber Technologies Price Performance

The company has a current ratio of 1.07, a quick ratio of 1.07 and a debt-to-equity ratio of 0.41. The firm's 50-day moving average price is $71.83 and its two-hundred day moving average price is $73.94. The stock has a market cap of $138.85 billion, a PE ratio of 17.01, a PEG ratio of 6.54 and a beta of 1.13.

About Uber Technologies

Uber Technologies, Inc is a technology company that operates a global platform connecting riders, drivers, couriers, restaurants and shippers. Founded in 2009 by Garrett Camp and Travis Kalanick and headquartered in San Francisco, Uber developed one of the first large-scale ride-hailing marketplaces and has since expanded into a broader set of mobility and logistics services. The company completed its initial public offering in 2019 and continues to position its app-based network as a multi-modal transportation and delivery platform.

Uber's principal businesses include mobility services (ride-hailing and shared rides), delivery through Uber Eats, and freight logistics via Uber Freight.

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