Uber Shares Jump 10% on Strong Q2 Bookings Outlook Despite Mideast Drag

Investors sent Uber shares up nearly 10 percent before the market opened because the ride-hailing and delivery giant demonstrated that demand for its services remains robust even as fuel prices spike and conflict disrupts parts of the Middle East. The reaction underscored a central tension: can Uber keep expanding amid geopolitical volatility and weather shocks that hammered its first-quarter revenue? The answer in the numbers is yes, for now.

Uber reported first-quarter gross bookings of $53.7 billion, a 25 percent increase that topped the $52.8 billion average analyst estimate compiled by LSEG, according to the company's earnings release. Revenue reached $13.2 billion, a 14 percent rise from a year earlier but short of the $13.29 billion consensus. The mobility segment brought in $6.8 billion, missing the $7.11 billion StreetAccount forecast, while delivery revenue surged 34 percent to $5.07 billion and beat expectations. Freight sales also exceeded projections and returned to growth for the first time in nearly two years.

Net income fell sharply to $263 million from $1.78 billion a year ago after a $1.5 billion non-cash hit from revaluing equity stakes in Didi and Grab. On a non-GAAP basis, earnings per share came in at 72 cents. The company recorded 3.6 billion trips during the quarter. Uber attributed the revenue shortfall to winter storms in the U.S., the Middle East conflict and higher gasoline prices. Since the U.S. began combat operations in Iran in February, U.S. gas prices have climbed about 50 percent, a burden that falls on drivers. In response, Uber introduced fuel discounts and incentives lasting through late May.

For the current quarter, Uber forecast gross bookings between $56.25 billion and $57.75 billion, above the $56.07 billion Wall Street average. The outlook incorporates an estimated 60 basis-point drag from the Middle East conflict, a figure supplied by the company that could not be independently verified in real time. Adjusted earnings per share are projected at 78 to 82 cents, slightly ahead of the 79-cent consensus. Shares of smaller rival Lyft rose about 4 percent in sympathy.

The results reflect years of deliberate shifts. Uber has held consumer prices steady while expanding higher-margin businesses, including its platform for corporate clients, hotel bookings and the Uber One membership program that now exceeds 50 million users and drives roughly half of gross bookings. Strong delivery growth in Australia, Japan, the U.K. and new markets such as Denmark has helped offset regional pressures. The company is also leaning on artificial intelligence to restrain hiring: 95 percent of engineers now use AI coding tools each month and more than 10 percent of its code is generated autonomously by such agents, according to prepared remarks.

On autonomous vehicles, Uber has rejected building the technology in-house. It has forged partnerships with more than 20 companies, including Waymo, WeRide, Waabi, Wayve, Rivian and Nuro. The company plans to purchase validated autonomous vehicles from some partners and sell insurance, maintenance and training data to the industry. It expects to facilitate robotaxi trips in as many as 15 cities worldwide by the end of 2026. These moves, combined with the bookings beat, appear to have reassured investors that Uber's diversification is paying off even as external shocks persist.