Uber Technologies Inc. (NYSE:UBER) posted better-than-expected second-quarter earnings, driven by continued growth in both its ride-hailing and food delivery operations. Despite the strong results, shares dipped slightly at the open, down 0.5% from Tuesday’s close.
The company reported adjusted earnings per share of $0.63, edging past the $0.62 consensus. Revenue rose 18% year-over-year to reach $12.7 billion, topping analyst expectations of $12.47 billion.
Gross bookings climbed 17% from the prior year to $46.76 billion, just above forecasts of $46.42 billion. Uber also saw an 18% increase in total trips, hitting 3.3 billion for the quarter, fueled by a 15% boost in Monthly Active Platform Consumers.
Adjusted EBITDA jumped 35% from a year earlier to $2.1 billion, with profit margins improving to 4.5% of gross bookings—up from 3.9% during the same period last year.
“Our platform strategy is working, with record audience, frequency, and profitability across Mobility and Delivery,” said CEO Dara Khosrowshahi. “But we’re still only beginning to unlock the platform’s full potential, now with 20 autonomous partners around the world.”
The company’s core Mobility segment generated $7.29 billion in revenue, up 19% year-over-year, while the Delivery business grew by 25% to $4.1 billion. Uber’s Freight division was the only segment to report a slight decline, down 1% to $1.26 billion.
In a major capital allocation move, Uber revealed a new $20 billion share buyback program. CFO Prashanth Mahendra-Rajah said, “Today’s announcement of a new $20 billion share repurchase authorization underscores our confidence in the business, following yet another quarter of strong top and bottom-line performance.”
Looking ahead to Q3, the company guided for gross bookings between $48.25 billion and $49.75 billion, representing a 17% to 21% increase year-over-year on a constant currency basis—well ahead of the $47.58 billion consensus estimate. It also expects adjusted EBITDA between $2.19 billion and $2.29 billion, closely matching analyst forecasts of $2.22 billion.
Following the earnings release, analysts at Stifel described the results as “stronger delivery, weaker mobility,” but emphasized that Uber’s above-consensus revenue guidance adds to the bullish case for the stock.
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