Bank of America resets Uber stock price after earnings

Uber Technologies posted a beardown 4th quarter, but banal pullbacks amusement that investors are focused connected what lies ahead. Analysts are not wholly optimistic astir its near-term profitability, arsenic they are acrophobic astir borderline compression.

At slightest 1 slope thinks investors request to brace for choppier near-term profitability arsenic the institution reinvests successful tech expansion. The transport and nutrient transportation subordinate is presently astatine a crossroads betwixt method advancement and a ineligible combat that whitethorn acceptable a precedent for aboriginal battles.

Uber announced its fourth-quarter and full-year 2025 reports connected Feb 4, 2026, and has since seen respective banks little their terms targets, chiefly owed to anemic aboriginal guidance.

In a post-earnings enactment shared by the Bank of America, it reiterated a bargain standing but lowered its terms people from $110 to $103, simultaneously adjusting its EPS (earnings per share) estimates for the pursuing year, adjacent with beardown bookings momentum.

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Uber reported non-GAAP EPS of $0.71, up 27% twelvemonth implicit year, and estimates Q1 2026 EPS of $0.65 to $0.72.

BofA described the Q4 results arsenic solid, with gross supra expectations and bookings maturation accelerating. Uber reported $54.1 cardinal successful gross bookings, up 22% twelvemonth implicit year, and $14.4 cardinal successful revenue, up 20% twelvemonth implicit year.

Yet, the market’s absorption was cold, arsenic the company's banal declined astir 6% this past week, astir 5% post-results.

Uber’s reported EBITDA astatine $2.49 cardinal was lone somewhat supra the Street statement of $2.48 billion, arsenic the institution continues to put successful maturation initiatives.

However, the Q1 estimates also rise concerns implicit “increasing concern spend.”

• Based connected Uber’s Q1 guidance, it expects EBITDA of $2.37 to $2.47 billion, versus the Street’s statement of $2.45 billion.

• It besides sees Gross Bookings of $52.0-$53.5 billion, good supra the Street statement of $51.4 billion.

• This implies a 5.6% incremental EBITDA margin, down from the 7.3% borderline it reported for 2025, a diminution that fuels concerns astir rising expenditures.

Some of these investments tin beryllium seen successful transportation supply, membership, and lower-cost mobility products, which BofA sees arsenic a trade-off for semipermanent maturation and positions it good comparative to its competitors.

Some contiguous benefits were seen successful increased UberOne membership, up 55% to much than 46 cardinal members globally. Similarly, the diminution successful Mobility instrumentality complaint looks accordant with Uber’s strategy of investing successful lower-cost thrust products.