Uber Earnings Miss As Cheaper Rides Squeeze Margins
Uber earnings missed as cheaper ride pricing boosted trips and compressed margins, prompting premarket share selling and denting short-term sentiment.
KEY TAKEAWAYS
- Q4 adjusted EPS was $0.71, below consensus $0.78-$0.83.
- Revenue rose to $14.4B, up 20% year over year.
- Q1 guidance set adjusted EPS at $0.65-$0.72 and gross bookings $52.0-$53.5B.
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Uber Technologies Inc. reported earnings that missed expectations, and on Feb. 4, 2026, the company said its first-quarter profit guidance fell below market forecasts as it pursued trip growth through cheaper ride pricing.
Quarter Results and Guidance
Uber posted adjusted earnings per share of $0.71 for the fourth quarter of 2025, below the consensus range of $0.78 to $0.83. Revenue rose 20% year over year to between $14.37 billion and $14.4 billion, exceeding forecasts.
For the first quarter of 2026, Uber projected gross bookings of $52.0 billion to $53.5 billion and adjusted EPS of $0.65 to $0.72. Management said this guidance reflects margin compression tied to its strategy of offering more affordable rides to boost trip volumes. Shares traded more than 8% lower in premarket trading on Feb. 4.
Strategy and Risks
In a press release, CEO Dara Khosrowshahi said, "Uber accelerated into another record-breaking quarter, with more than 200 million monthly users completing more than 40 million trips every day; we enter 2026 with a rapidly growing topline and significant cash flow."
The company’s push to increase trip volumes through cheaper ride options materially compressed profitability margins in the fourth quarter. Delivery results exceeded expectations, supported by new partnerships with major retailers and payments firms that bolstered revenue growth.
Uber also faces a reported €1.7 billion (about $2.8 billion) claim in France over driver classification that remains unresolved and could represent a material liability.
