Uber’s stock fell 8% on Tuesday after the company missed profit expectations and issued a lower-than-expected earnings forecast for the crucial holiday quarter. Despite strong growth in rides and delivery services, higher legal and regulatory costs dented operating income and investor sentiment.
The company reported third-quarter operating income of $1.11 billion, falling short of the $1.61 billion forecast. Uber’s guidance for adjusted profit in the fourth quarter — between $2.41 billion and $2.51 billion — also missed the market consensus, according to data from LSEG.
Revenue still rose 20% to $13.47 billion, while gross bookings climbed to $49.74 billion, both above analyst expectations. The company’s delivery segment grew 29%, outpacing its mobility division’s 20% rise. CEO Dara Khosrowshahi said the Uber One membership program is driving stronger engagement, as customers who use multiple services spend three times more than single-service users.
Uber plans to replace its adjusted EBITDA metric with adjusted profit in the next quarter to better reflect its operational performance. Still, with its shares already up more than 60% this year, the latest miss raised questions about how long Uber can maintain its growth trajectory amid intensifying regulatory scrutiny.
