New York, Feb 4, 2026, 13:20 EST — Regular session
- Uber shares dropped following a profit miss and a weaker-than-anticipated outlook for first-quarter earnings
- The company emphasized its robotaxi growth, doubling down on autonomous-vehicle partnerships
- Investors will also need to factor in the CFO handover set for later this month
Uber Technologies, the ride-hailing and delivery giant, dropped Wednesday after missing fourth-quarter adjusted profit forecasts. The company projected first-quarter adjusted EPS between 65 and 72 cents, falling short of analysts’ 76-cent estimate. Shares fell about 4% to $74.84 by 1:20 p.m. EST, having earlier hit $70. Uber plans a 22%-25% effective tax rate by 2026 and aims to roll out robotaxi services in as many as 15 cities by the end of that year. CEO Dara Khosrowshahi said Uber is “putting our capital up” to lock in early autonomous vehicle supply, while William Blair analyst Ralph Schackart pointed to a “continued AV debate.” Reuters
The report arrives at a sensitive point for Uber’s shares. Wall Street had baked in steady demand and expanding margins, but a weaker profit forecast revives a familiar concern: what’s the real cost of keeping rides affordable while still scaling up.
This also reignites a larger debate simmering beneath the surface. Investors are racing to figure out how robotaxis will impact the ride-hailing business—will they grow the market or just take the prime rides? And crucially, how quickly will the data reveal which way it goes?
Uber reported a 22% jump in gross bookings for Q4, reaching $54.1 billion, driven by a 22% rise in trips to 3.8 billion and 202 million monthly active users. Revenue climbed 20% to $14.4 billion. Adjusted EBITDA surged 35% to $2.5 billion, while free cash flow hit $2.8 billion. The company posted GAAP net income of $296 million. Looking ahead to Q1, Uber expects gross bookings between $52.0 billion and $53.5 billion, with adjusted EBITDA forecasted in the range of $2.37 billion to $2.47 billion.
Pressure spread to peers as well. Lyft dropped roughly 3%, while DoorDash tumbled over 5% in afternoon trade.
Uber announced a shuffle at the top of its finance team in an 8-K filing. CFO Prashanth Mahendra-Rajah will step down on Feb. 16, handing the reins to Balaji Krishnamurthy. Mahendra-Rajah will stay on as a senior finance adviser until July 1. The company stressed the exit isn’t linked to any disputes over financial reporting or accounting issues.
Uber told investors it expects autonomous vehicles to “drive incremental growth for the entire category” by boosting supply and lowering ride costs. In prepared remarks, the company highlighted Austin and Atlanta, where hundreds of AVs are already running on its network. It noted trip growth has sped up, and driver earnings per hour have risen thanks to a mix of robotaxis and human drivers. Uber added it plans to roll out its own AVs in the Bay Area within the next year.
Regulatory headaches haven’t disappeared—and they could get costly. In France, Uber revealed it’s negotiating with social security agency Urssaf following a report that the agency demands Uber classify some drivers as employees. Investigative outlet Revue21 estimates the bill at 1.2 billion euros in contributions plus 512 million euros in penalties. Uber, however, points to French Supreme Court decisions backing its stance that drivers remain independent contractors. Still, legal battles across Europe are putting that model under strain.
Investors must now figure out what today’s figures mean for the coming quarters: will demand stay strong without ongoing discounts, and just how much upfront cash Uber has to commit to autonomy as taxes climb.
Feb. 16 is the next key date, marking Krishnamurthy’s start as CFO. Traders will be watching closely for updates on robotaxi rollouts and capital plans as the company navigates the tightrope between cost control and profitability.
