Uber $UBER ( ▼ 5.15% ) delivered a decent fourth quarter, but investors are focusing on what comes next, and they are not thrilled. While bookings and revenue held up, the company’s profit outlook for the current quarter came in below expectations, sending shares lower.
The message from the market is clear. Growth is good, but margins matter more.
Q4 Was Steady, Not Spectacular
For Q4 2025, Uber reported adjusted EPS of $0.71, just shy of estimates, while revenue of $14.37 billion came in slightly ahead of expectations. Gross bookings reached $54.14 billion, about $1 billion above what Wall Street was modeling.
That shows demand for rides and deliveries is still strong. People are using the platform, and transaction volume continues to grow.
Guidance Points to Margin Pressure
The bigger issue was Q1 guidance. Uber forecast diluted EPS between $0.65 and $0.72, below analyst expectations of $0.76. At the same time, the company projected gross bookings of $52 billion to $53.5 billion, which is actually ahead of forecasts.
In other words, Uber expects solid top-line activity but thinner profitability. That implies higher costs, more incentives, or heavier investment, all of which weigh on margins even as usage rises.
Investing Now, Profits Later
Management previously said it is intentionally slowing margin expansion to invest in more affordable products aimed at boosting mobility growth. The strategy is to capture more demand today, even if it means giving up some near-term earnings.
Uber $UBER’s incoming CFO said the company is still on track to meet its longer-term growth and profit targets. For now, though, investors appear to be recalibrating expectations, focusing less on bookings momentum and more on how quickly those rides turn into bottom-line gains.