UBER Q2 Earnings Surpass Estimates, Revenues Increase Year Over Year

Adjusted EBITDA rose 33% year over year to $2.81 billion. Adjusted EBITDA margin as a percentage of gross bookings improved to 4.9% from 4.5%, highlighting faster earnings growth relative to platform transaction growth.

UBER's Bookings and Engagement Accelerate

Gross bookings grew 24% year over year on a reported basis and 22% year over year on a constant-currency basis to $58.02 billion, while trips increased 18% to 3.87 billion, reflecting expanding platform usage.

Mobility bookings rose 22% year over year on a reported basis and 20% on a constant currency basis to $28.98 billion, supported by continued demand for rides across Uber’s global platform.

Delivery gross bookings increased 26% year over year on a reported basis and 25% on a constant currency basis to $27.46 billion, while Freight bookings increased 25% year over year on a reported basis as well as on a constant currency basis to $1.57 billion. Growth across all three offerings demonstrated the breadth of the company’s platform during the quarter.

Monthly active platform consumers, or users completing at least one Mobility ride or Delivery order in a month, increased 16% year over year to 208 million. Trips per monthly active consumer rose 2%, signaling higher engagement alongside user growth.

Uber's Mobility Growth Supports Profits

Mobility revenues increased 1% year over year to $7.36 billion and remained flat on a constant-currency basis. Business model changes limited reported revenue growth even as the underlying value of transactions completed through the platform expanded.

Mobility segment operating income climbed 28% year over year to $2.21 billion. The improvement showed that the company converted higher bookings and platform activity into stronger segment profitability.

The Mobility business remained Uber’s largest revenue contributor. Its profit growth also provided an important counterbalance to rising corporate general and administrative expenses and platform research and development spending.

UBER's Delivery and Freight Revenues Surge

Delivery revenues jumped 28% year over year on a reported basis and 26% on a constant-currency basis to $5.24 billion. The segment continued to benefit from higher order activity and growing consumer participation across the platform.

Delivery operating income surged 38% year over year to $1.05 billion. The growth rate exceeded the segment’s revenue increase, reflecting improved operating leverage as the business scaled.

Freight revenues rose 26% year over year on a reported basis and 25% on a constant-currency basis to $1.58 billion. The segment’s operating loss narrowed to $24 million from $26 million a year ago, indicating modest progress toward improved profitability despite continued losses.

Balance Sheet & Cash Flow

Uber exited the second quarter with cash and cash equivalents of $4.87 billion compared with $5.55 billion at the end of the prior quarter. Long-term debt, net of the current portion, was $10.7 billion compared with $10.5 billion at the end of the prior quarter.

Operating cash flow was $2.86 billion in the reported quarter. The free cash flow was $2.79 billion.

The company repurchased $518 million of common stock during the reported quarter.

Uber Issues Q3 Growth Outlook

For the third quarter of 2026, Uber expects gross bookings between $58.25 billion and $60.25 billion. The range implies constant-currency growth of 18-22%, with an anticipated currency headwind of roughly 1 percentage point to reported growth.

Non-GAAP earnings are projected to be between 84 cents and 88 cents per share, representing year-over-year growth of 28-35%. Adjusted EBITDA is expected to be in the range of $2.86 billion to $2.96 billion.Top of FormBottom of Form

Currently, UBER carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Sectoral Players to Report Q2 Results

Uber’s main competitor, Lyft LYFT, is scheduled to report its second-quarter 2026 results on Aug. 6. The company has an Earnings ESP of 0.00% and a Zacks Rank #3 at present.

We expect Lyft's performance in the to-be-reported quarter to have been boosted by an uptick in total revenues. Its top-line growth is likely to have been driven by an increase in active riders as the ride-share market rebounds from the pandemic lows. However, high inflation might hurt results in the to-be-reported quarter.

Other players from the broader Computer and Technology sector include NVIDIA NVDA, which has an Earnings ESP of +0.52% and a Zacks Rank #1 at present.

NVIDIA shares have gained 7.6% in the year-to-date period. NVIDIA is set to report second-quarter fiscal 2027 results on Aug. 26. 

Analog DevicesADI has an Earnings ESP of +2.73% and a Zacks Rank #2 at present.

Analog Devices shares have gained 35.5% in the year-to-date period. Analog Devices is scheduled to report its third-quarter 2026 results on Aug. 19.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research