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With a market cap of $135.2 billion, Uber Technologies, Inc. (UBER) develops and operates proprietary technology applications in the United States and internationally. Founded in 2009, the San Francisco-based company operates through three segments: Mobility, Delivery, and Freight. The company is expected to report its Q1 earnings on Wednesday, May 7, before the market opens.
Ahead of the event, analysts expect UBER to report an EPS of $0.51 per share, up 259.4% from a loss of $0.32 per share reported in the year-ago quarter. It has exceeded analysts' earnings estimates in three of the past four quarters, while missing on one occasion. Its EPS of $3.21 in the recent quarter surpassed the analysts’ expectations by 542%, driven by a robust increase in gross bookings and trips.
For the current year, analysts expect UBER to report an EPS of $2.51, down 45% from $4.56 in fiscal 2024. However, looking ahead, analysts expect its earnings to surge 37.5% year-over-year to $3.45 per share in fiscal 2026.
Over the past year, UBER shares surged 12.2%, outperforming the S&P 500 Index’s ($SPX) 9.4% gains and the Technology Select Sector SPDR Fund’s (XLK) 5.5% returns over the same time frame.
UBER stock fell 7.6% following its Q4 earnings release on Feb. 5. The company reported a 20.4% year-over-year growth in its revenues, driven mainly by record demand for mobility as well as delivery, and exceeding the Street’s expectations. Moreover, its income from operations increased by a notable 18.1% year-over-year to $770 million.
Moreover, analysts remain strongly bullish about UBER stock’s future prospects, with a "Strong Buy" rating overall. Among 47 analysts covering the stock, 35 recommend a “Strong Buy,” three suggest a “Moderate Buy,” and nine suggest a “Hold.” Its mean price of $89.43 implies a premium of 15% from its prevailing price level.
