Uber Q3 Revenue and Profit Beat Estimates but Mobility Misses as Driver Shortages Weigh

Uber Technologies reported third-quarter 2026 results that broadly topped Wall Street expectations on revenue and profit, though its core ride-hailing business came in short on bookings and trips as overseas driver shortages and rising fuel costs created a supply crunch. Revenue reached $14.77 billion against an estimate of roughly $14.65 billion, adjusted EPS came in at $0.88 versus the $0.87 consensus, and gross bookings grew 20% year-over-year to $59.82 billion, marking the fifth consecutive quarter of 20%-plus constant-currency growth. CEO Dara Khosrowshahi told CNBC the company has "more demand than we have supply," pointing to tighter driver availability in international markets, compounded by Middle East conflict dampening activity in that region.

The Mobility segment posted bookings of $29.51 billion, missing the $29.88 billion estimate, while segment revenue fell 2% year-over-year to $7.52 billion. Delivery was a bright spot, with bookings of $28.54 billion beating the $28.41 billion estimate and segment revenue climbing 23% to $5.49 billion. Freight revenue surged 34% to $1.76 billion. Adjusted EBITDA rose 31% to $2.96 billion, ahead of the $2.93 billion estimate, and the EBITDA margin expanded 50 basis points to 5.0% of gross bookings. Net income was $512 million and free cash flow reached $2.54 billion, up 14% from a year earlier. Total trips of 4.06 billion missed the 4.12 billion estimate, and monthly active platform consumers of 215 million were in line with forecasts.

For the fourth quarter, Uber guided gross bookings to $63.25 billion to $65.25 billion, representing 18% to 22% year-over-year growth on a constant-currency basis, with roughly one percentage point of currency headwind to reported growth. Adjusted EBITDA is projected at $3.13 billion to $3.23 billion and non-GAAP EPS at $0.95 to $0.99, brackets that straddle or sit near consensus but disappointed some investors expecting stronger profit guidance. The company is spending more on driver incentives across markets from the US to India to ease the supply squeeze.

Uber set concrete autonomous vehicle targets, saying it expects approximately 700 fully driverless vehicles on its platform by year-end 2026 and more than 2,000 by the end of 2027, and disclosed a commitment of roughly $10 billion to autonomous vehicle development. Additional driverless deployments with partner Avride are planned for 2027. Separately, Waymo co-CEO Tekedra Mawakana confirmed her company will end its exclusive robotaxi partnership with Uber in the Austin and Atlanta markets in January 2028, citing customer demand for more consistency when ordering self-driving rides. BTIG trimmed its price target on Uber citing mobility deceleration concerns. Despite the mixed signals, Uber shares rose about 7% to $71.43, lifting peers Lyft by 11% and DoorDash by 7%. The company also disclosed that President and Chief Corporate Affairs Officer Jill Hazelbaker will step down on November 30, 2026, for an external opportunity.