Earnings Beat: Uber Technologies, Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Last week, you might have seen that Uber Technologies, Inc. (NYSE:UBER) released its quarterly result to the market. The early response was not positive, with shares down 4.5% to US$92.12 in the past week. It looks like a credible result overall - although revenues of US$13b were what the analysts expected, Uber Technologies surprised by delivering a (statutory) profit of US$3.11 per share, an impressive 353% above what was forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Uber Technologies' 51 analysts is for revenues of US$60.1b in 2026. This reflects a major 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 56% to US$3.55 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$59.5b and earnings per share (EPS) of US$3.55 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Uber Technologies

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$110. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Uber Technologies analyst has a price target of US$150 per share, while the most pessimistic values it at US$82.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Uber Technologies' revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2026 being well below the historical 28% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.3% per year. So it's pretty clear that, while Uber Technologies' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$110, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Uber Technologies going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Uber Technologies (at least 2 which are potentially serious) , and understanding them should be part of your investment process.

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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.