Uber share price in focus as firm announces $20 billion buyback, solid Q3 growth forecast

Uber share price rose 4.9% in premarket trading to $91 on NYSE after the company reported better-than-expected second-quarter results (Q2CY25) and forecasted third-quarter bookings above Wall Street estimates. The ride-hailing and delivery services company is benefiting from increased adoption of its paid loyalty program.

Uber also expanded its share repurchase authorization by $20 billion, with $3 billion remaining from its previous buyback program.

The company, on Wednesday, reported a profit of $1.36 billion, or 63 cents per share, for the quarter ended June 30, compared with $1.02 billion, or 47 cents per share, a year earlier. Revenue rose 18% to $12.65 billion, beating analyst estimates of $12.47 billion.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached a record $2.12 billion, surpassing forecasts of $2.09 billion. Total trips increased 18% to 3.3 billion, while monthly active platform consumers grew 15% and gross bookings rose 17% to $46.8 billion.

The company’s signature rideshare unit recorded $23.8 billion in gross bookings in the second quarter, shy of the $23.9 billion analysts were expecting. Uber has been offering more types of trip types to cater to different user needs.

According to analysts, the company has benefited from increased weekday commuter demand in the June quarter, with riders using its “Price Lock Pass” to make an average of six additional monthly commute trips.

The subscription program, which offers fixed pricing on selected routes for $2.99 per month, is part of Uber’s strategy to drive habitual usage and is now available in over 10 major U.S. and Brazilian cities.

“Our platform strategy is working, with record audience, frequency, and profitability across Mobility and Delivery,” said Uber CEO Dara Khosrowshahi. “But we’re still only beginning to unlock the platform’s full potential, now with 20 autonomous partners around the world.”

The stock, which is one of the top performing stocks on the S&P 500 index, has surged 48% this year and in July, the stock recorded a fresh all-time high of $97.72.

For the current third quarter, Uber anticipates gross bookings, which include ride hails, delivery orders and driver and merchant earnings but not tips — will range from $48.25 billion to $49.75 billion for the three months ending September, Uber said in a statement Wednesday. Wall Street was projecting $47.6 billion, according to Bloomberg-compiled estimates.

That would represent an 18% to 21% growth rate, according to Bloomberg calculations, faster than the 17% gain in second-quarter bookings.

The company expects adjusted core profit (EBITDA) of $2.19 billion to $2.29 billion, with the midpoint above analysts’ average estimate of $2.22 billion.

Although Uber does not own its own robotaxi technology, it is leveraging partnerships to strengthen its mobility segment in the coming years. The company now has over 20 collaborations in the self-driving technology space, including its latest tie-up with electric vehicle maker Lucid and startup Nuro.

(With inputs from agencies)

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