Uber Q4 Earnings on Deck: Buy, Sell or Hold It Ahead of Results?

Uber Technologies UBER is slated to release fourth-quarter 2025 results on Feb. 4, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 83 cents per share and $14.28 billion, respectively.

The earnings estimate for the to-be-reported quarter has inched up a cent over the past 60 days. The Zacks Consensus Estimate for quarterly revenues indicates an 19.4% uptick from the year-ago quarter’s figure. The same for quarterly earnings indicates a 74.1% decline from the year-ago quarter’s figure.

For 2025, the Zacks Consensus Estimate for UBER’s revenues is pegged at $51.9 billion, implying an expansion of 18% year over year. The consensus mark for 2025 EPS is pegged at $5.4, implying growth of 18.4% on a year-over-year basis.

In the trailing four quarters, this company’s earnings surpassed estimates on each occasion, the average beat being 242.6%.

Uber Technologies Price and EPS Surprise

Uber Technologies  price-eps-surprise | Uber Technologies Quote

Q4 Earnings Whispers for UBER

Our proven model does not predict an earnings beat for UBER for the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

UBER has an Earnings ESP of -7.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Shaping UBER’s Q4 Results

Uber’s gross bookings are likely to have been impressive in the December quarter. The company expects fourth-quarter 2025 gross bookings to come in between $52.25 billion and $53.75 billion, implying constant-currency year-over-year growth of 17% to 21%. Management anticipates a roughly 1 percentage-point currency tailwind for the reported figures. 

The Zacks Consensus Estimate for gross bookings in the fourth quarter of 2025 is pegged at $53.1 billion, representing 20.1% growth from the actual fourth-quarter 2024 results. We expect both its mobility and delivery segments to record double-digit increases in gross bookings in the December quarter. In the fourth quarter, Uber expects adjusted EBITDA to be in the range of $2.41 billion to $2.51 billion, representing 31% to 36% year-over-year growth.

However, tariff-related headwinds are likely to hurt results. We believe that more than the financial numbers, it is the guidance that investors will watch more closely. Uber has been focusing on autonomous vehicles to drive growth. The company is expected to provide updates on the same on the fourth-quarter conference call. Investors would also await an update on the recent Dutch court ruling that classified drivers as self-employed rather than employees, thereby overturning a 2021 verdict.

UBER’s Price Performance & Valuation

Shares of Uber have declined in excess of 15% over the last three months, underperforming the Zacks Internet-Services industry as well as rival Lyft LYFT.

3-Month Price Comparison

The San Francisco-based Uber’s shares have dropped primarily on concerns regarding competition in the robotaxi and autonomous driving space. Last month, Alphabet’s GOOGL Waymo revealed that it had crossed 450,000 weekly paid rides, almost double the 250,000 it reported in April 2025. The increasing use of autonomous rides through Alphabet’s robotaxi unit has been impacting Uber’s core business – ride-hailing. Launched in 2009 as part of Google’s Self-Driving Car unit before being reorganized into an independent company under the Alphabet umbrella, Waymo has already started large-scale, fully driverless services in multiple U.S. cities. Its entire fleet runs without safety drivers. 

From a valuation perspective, Uber is trading at a lower level compared with its industry. Going by its price/earnings ratio, the company is trading at a forward earnings multiple of 22.15, below the industry’s 29.5. The company has a Value Score of C. Meanwhile, Lyft’s shares appear to be even cheaper, trading at a forward earnings multiple of 11.37. Lyft has a Value Score of B currently.

UBER’s P/E F12M vs. Industry & LYFT

How to Play Uber Pre-Q4 Earnings

The company’s diversification efforts and shareholder-friendly approach are praiseworthy. Uber’s large size (market capitalization of $201.08 billion) positions it well to overcome turbulent times, such as the current one. Diversification is imperative for big companies to reduce risks and Uber has excelled in this area. The company has engaged in numerous acquisitions, geographic and product diversifications and innovations. Uber’s endeavors to expand into international markets are commendable and provide it with the benefits of geographical diversification. Prudent investments enable Uber to extend its services and solidify comprehensive offerings.

However, fears regarding competition in the robotaxi and autonomous driving space represent a major concern. High operating costs and escalated debts are other headwinds that cannot be overlooked.

So, all in all, it is worth holding on to Uber stock now, and investing ahead of the upcoming results does not seem like a good idea. It is better to wait for management’s commentary on tariffs and fourth-quarter guidance to get more clarity on near-term prospects.  

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

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