UBER TECHNOLOGIES INC (NYSE:UBER) Stock Falls on Tepid Q4 Outlook Despite Strong Q3 Earnings Beat

UBER TECHNOLOGIES INC (NYSE:UBER) reported financial results for the third quarter of 2025 that presented a complex picture for investors, leading to a notable decline in its stock price during pre-market trading despite exceeding key quarterly estimates.

Earnings and Revenue Versus Estimates

The company delivered a significant earnings beat for the quarter. Its non-GAAP earnings per share (EPS) came in at $3.11, dramatically surpassing the analyst consensus estimate of $0.70. This performance was largely driven by a $4.9 billion one-time benefit from a tax valuation release.

On the top line, Uber reported revenue of $13.47 billion, a 20.4% increase compared to the same quarter last year. However, this figure slightly missed the analyst revenue estimate of $13.54 billion. The core operational strength was evident in Gross Bookings, which grew 21% year-over-year to $49.7 billion, indicating robust underlying demand for its services.

Market Reaction and Outlook Concerns

Following the earnings release, UBER stock was down approximately 4.7% in pre-market trading. This negative price action appears to be primarily driven by the company's forward-looking guidance for the fourth quarter of 2025, which fell short of Wall Street's expectations.

• Uber anticipates Q4 Gross Bookings between $52.25 billion and $53.75 billion, representing growth of 17% to 21% year-over-year.
• The company provided an Adjusted EBITDA outlook of $2.41 billion to $2.51 billion.

While this demonstrates continued growth, the midpoint of the Gross Bookings guidance range is slightly below the analyst sales estimate of $53.54 billion for Q4. This tepid forecast seems to have overshadowed the strong Q3 bottom-line beat and solid operational metrics.

Operational and Financial Highlights

The earnings press release detailed several areas of significant strength in the third quarter:

• User and Trip Growth: Monthly Active Platform Consumers (MAPCs) grew 17% year-over-year to 189 million. The total number of trips on the platform surged 22% to 3.5 billion.
• Profitability: Adjusted EBITDA saw a substantial 33% increase to $2.26 billion, with the margin as a percentage of Gross Bookings expanding to 4.5% from 4.1% a year ago.
• Segment Performance:
  • Mobility Gross Bookings grew 20% to $25.1 billion.
  • Delivery Gross Bookings saw even stronger growth, up 25% to $23.3 billion.
• Cash Flow: The company generated $2.23 billion in free cash flow and ended the quarter with $9.1 billion in unrestricted cash and short-term investments.

CEO Dara Khosrowshahi described the quarter as one where "Uber’s growth kicked into high gear," marking "one of the largest trip-volume increases in the company’s history."

Conclusion

Uber's third-quarter results paint a picture of a company experiencing powerful operational momentum and soaring profitability, albeit significantly aided by a one-time tax benefit. The market's negative reaction underscores the high expectations embedded in the stock's valuation and suggests investor focus has swiftly shifted to whether the company's growth trajectory can continue to meet or exceed ambitious targets in the coming quarter. The disconnect between a strong quarterly print and a weaker-than-hoped outlook has created a "sell the news" event.

For a detailed look at upcoming earnings dates and analyst estimates, you can view the UBER earnings and estimates page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. The information presented is based on publicly available data and should not be relied upon as the sole basis for investment decisions.