Uber's Latest Earnings Show No Surprises, Flat Outlook for Current Quarter Sends Pre-Market Shares Lower

Uber Technologies (UBER-US) released its second-quarter fiscal 2026 results (ended June 30) before U.S. markets opened on Wednesday (July 5). Boosted by ride demand from the World Cup, total bookings exceeded Wall Street expectations, but revenue came in roughly in line with forecasts. Profit and booking outlooks for the third quarter (current quarter) failed to impress, and with intensifying competition in Brazil dampening trip growth, pre-market shares dropped nearly 3.5%.

As of press time, Uber (UBER-US) shares were down 2.76% in pre-market trading, temporarily priced at $70.00 per share.

Uber’s Q2 revenue rose 12% year-over-year to $14.19 billion, slightly below the LSEG-analyst consensus estimate of $14.24 billion. Adjusted earnings per share (EPS) reached $0.81, up from $0.63 a year earlier and marginally above FactSet’s forecast of $0.80.

Figure: Uber Earnings

Total bookings, which measure overall transaction volume across Uber’s ride-hailing and delivery platforms, surged 24% year-over-year to $58.02 billion—exceeding Wall Street’s estimated range of approximately $57.06 billion to $57.23 billion. Uber stated that demand grew broadly across regions and services, with travel activity linked to the World Cup particularly strong. Over 8 million visitors used Uber in host cities during the tournament.

World Cup Demand Supports Results, But Brazilian Competition Drags Trip Volume

Uber’s total number of rides and deliveries in Q2 increased 18% year-over-year to 3.87 billion trips, slightly below analysts’ expectation of 3.9 billion. The company attributed the slowdown in trip growth “entirely to Brazil,” its largest global market by transaction volume, where competition has recently intensified.

Players including Chinese ride-hailing platform Didi Global and delivery giant Meituan have continued investing heavily in Brazil, competing aggressively for local couriers and consumers. This has forced Uber to allocate more resources to maintain market share. As a result, the company’s operating expenses rose approximately 10% year-over-year, with increases in marketing, R&D, and administrative costs.

Nonetheless, Uber reported that the number of new first-time users added over the past year hit the highest level in any comparable period over the last five years. CEO Dara Khosrowshahi noted that while new user acquisition continues, existing customers are also increasing their usage frequency. The company is building on a solid business foundation to expand its cross-platform strategy.

For Q3, Uber forecasts total bookings between $58.25 billion and $60.25 billion, with a midpoint of $59.25 billion—slightly below Wall Street’s estimated range of $59.21 billion to $59.33 billion. The company expects adjusted EPS of $0.84 to $0.88, with a midpoint of $0.86, also below LSEG’s consensus estimate of $0.89.

Uber warned that currency fluctuations are expected to reduce the year-over-year growth rate of Q3 total bookings by approximately one percentage point, reversing the positive impact exchange rates had over the previous four quarters. With core business guidance only meeting expectations, market concerns remain about Uber’s ability to sustain growth into the robotaxi era.

Investing Over $10 Billion in Robotaxi; London Service Still Includes Safety Drivers

Uber reiterated its commitment to invest over $10 billion in autonomous vehicles over the coming years, though it did not disclose a specific investment timeline. Prior to the earnings release, the company announced it will launch a robotaxi service in London with UK startup Wayve Technologies in the coming weeks—potentially ahead of planned deployments by Baidu (BIDU-US)(09888-HK) and Alphabet (GOOGL-US) subsidiary Waymo.

However, Wayve vehicles will initially include safety drivers, as both companies will operate under standard private hire vehicle licenses. To offer truly driverless services, additional regulatory approvals will still be required.

Last year, Uber announced multiple autonomous vehicle partnerships, but management acknowledged most collaborations may take several years to generate meaningful returns. Meanwhile, Waymo is expanding its driverless services to more U.S. cities through its own app rather than relying solely on the Uber platform, leading some investors to question Uber’s future role in the robotaxi supply chain.

Additionally, Uber announced last month it will acquire Delivery Hero for $14.8 billion, funding the deal through existing cash reserves and debt. The combination of this large acquisition and a commitment to spend over $10 billion on autonomous driving has made capital allocation a key focus for investors. Uber’s stock had already declined about 12% year-to-date before the earnings release, and pre-market losses widened to 3.5% following the report.