Coupang (CPNG) Surpasses Q3 Earnings Estimates Will Automation Drive Sustainable Profit Growth?

• Coupang reported third-quarter 2025 earnings, with revenue rising to US$9.27 billion and net income reaching US$95 million, both above the prior year's figures.
• Management pointed to continued gains in Coupang Eats and Coupang Play, underlining ecosystem growth and the positive impact of investments in automation and logistics.
• We'll examine how Coupang's strong revenue growth and improved profitability shape the investment narrative for its core and expanding segments.

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Coupang Investment Narrative Recap

Owning Coupang stock means believing that continued expansion of its ecosystem, spanning e-commerce, Eats, and Play, can drive meaningful revenue growth and sustainable profitability, especially as automation and logistics investments take hold. The company’s recent earnings showed rising revenue and profits, yet short-term upside remains closely linked to whether operational efficiencies are enough to offset the persistent risks tied to scaling losses and high expenses in new international markets. For now, the quarterly results support the existing growth narrative without fundamentally altering the most significant near-term catalyst or changing the biggest risk.

Of Coupang’s recent announcements, its completed share buyback of more than 2.8 million shares for US$80.5 million stands out. This action is relevant in the context of the latest results, reflecting how management is deploying capital, though it does not directly shift the core debate around investment in international growth and achieving profitability in newer markets.

However, investors should be aware that if operating expenses remain elevated for longer than planned...

Read the full narrative on Coupang (it's free!)

Coupang's outlook anticipates $46.0 billion in revenue and $2.0 billion in earnings by 2028. This is based on a projected annual revenue growth rate of 12.6% and a $1.6 billion increase in earnings from $365.0 million today.

Uncover how Coupang's forecasts yield a $34.52 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Community fair value estimates for Coupang span from US$27.25 to US$46.49, based on 8 distinct perspectives from the Simply Wall St Community. While many are optimistic about continued efficiency gains from automation and logistics, the risk of margin pressure from scaling new markets remains a crucial factor for long-term performance.

Explore 8 other fair value estimates on Coupang - why the stock might be worth 10% less than the current price!

Build Your Own Coupang Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Coupang research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Coupang research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Coupang's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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