Instacart Earnings Beat Expectations

Instacart earnings showed stronger-than-expected fourth-quarter revenue when the company reported results on Feb. 12, 2026, and it issued Q1 guidance above forecasts, supported by rising advertising and enterprise demand even as GAAP profitability weakened.

Q4 Results and Guidance

Instacart posted fourth-quarter revenue of $992 million, up 12.3% year-over-year and exceeding estimates of $972 million. Gross transaction value (GTV) rose 14.0% to $9.9 billion, marking the company’s strongest quarterly volume in three years. Orders increased 16.0% to 89 million.

For the first quarter of 2026, the company forecast GTV between $10.1 billion and $10.3 billion, implying growth of 11.0% to 13.0% year-over-year. It projected advertising revenue growth of 11.0% to 14.0% and adjusted EBITDA of $280 million to $290 million. Management attributed the outlook to demand for essentials, advertising, the enterprise platform, and investments in artificial intelligence, signaling continued momentum in volume and monetization.

Margins, Settlement, and Returns

Adjusted EBITDA for the quarter reached $303 million, a 30.5% margin, surpassing estimates of $292 million. Adjusted earnings per share (EPS) were $0.97, beating forecasts. These non-GAAP results reflected profitability in Instacart’s core marketplace and advertising mix despite pressure on other measures.

GAAP EPS was $0.30, below the expected $0.52, while net income declined 46.0% year-over-year to $81 million, weighed down by a $60 million Federal Trade Commission settlement. The operating margin contracted to 9.9% from 17.6% a year earlier, reflecting higher general and administrative expenses and regulatory costs.

For the full year, GTV totaled $37.2 billion, up 11.0% year-over-year, and adjusted EBITDA rose 23.0% to $1.1 billion. Operating cash flow reached $971 million. Instacart repurchased $1.4 billion of shares in 2025, including $1.1 billion in the fourth quarter, returning cash to investors while maintaining investments in growth initiatives.

The company served more than 26 million customers in 2025, with about 10 million active users in December. Its enterprise platform powers over 380 grocer e-commerce sites, including partnerships with Costco in Spain and France. Its advertising business works with more than 9,000 brands across over 310 retailer sites, a footprint management cites to explain its revenue diversification.