Uber Technologies, Inc. (UBER) Earnings

Management highlights

### Core Quarterly Results - Q2 2026 delivered record audience and user engagement, with durable top-line growth, expanding operating margins, and record cash generation, allowing the company to invest from a position of strength across key strategic priorities - U.S. mobility growth accelerated beyond temporary tailwinds from the one-off World Cup event, with broad sustainable drivers across the business ### Strategic Acquisitions - Uber has entered into a definitive agreement to acquire Delivery Hero, which will expand Uber's platform reach to nearly 100 global markets, and double the number of markets where Uber can offer an integrated mobility and delivery platform. Management expects the deal to create significant long-term shareholder value by combining Uber's technology and the Uber One subscription program with Delivery Hero's existing market footprint - Integration planning for Delivery Hero is complete, with a clear plan: the transaction is expected to close in H2 2027, with planning and development taking place in 2028, and primary platform migrations occurring in 2029. Synergies are rooted in consolidating to a single shared tech platform, eliminating duplicated infrastructure and roles, and consolidating shared services like payments and cloud ### Autonomous Vehicles (AV) Strategy - Uber's long-term ambition is to become the world's leading commercialization platform for autonomous vehicles. Management expects the AV industry to follow a similar trajectory to AI foundation models, with multiple competing leading platforms rather than a single dominant player, and Uber will partner with multiple developers to serve consumer demand - Uber continues to invest in AV at a planned multi-year level of $10 billion, with investments split between equity stakes in software developers (to secure early access to commercialization) and selective balance sheet support for fleet operations, real estate, and OEM off-take commitments, totaling ~120,000 planned vehicle commitments over the next few years - Uber's new AV Lab is collecting high-fidelity, rideshare-specific sensor data from hundreds of vehicles to share with all of Uber's AV partners, accelerating the development of end-to-end AI models that are replacing older heuristic-based AV software ### Artificial Intelligence (AI) Investments - AI is already driving incremental productivity and efficiency across the company: 100% of Uber engineers use AI coding tools, which has roughly doubled measured code output, allowing the company to moderate headcount growth. AI is also expected to improve customer support quality while reducing operational costs, and improve marketing efficiency - For consumers, AI improves personalization across the platform: 75% of rides already use AI-powered personalized destination predictions that eliminate manual typing, and AI-powered cart building for delivery increases average order size by 2x. AI also improves search and content ranking for restaurants and deals, increasing conversion and consumer satisfaction

Guidance

- Management reaffirmed prior expectations for U.S. mobility growth to accelerate through full-year 2026 - Uber is on track to launch commercial AV services in 15 cities by the end of 2026, up from 7 cities currently, with additional new market launches planned throughout 2027, and broader global expansion targeted for 2028 - Following tactical deployment of $4 billion in capital to accumulate Delivery Hero stock in Q2 2026, share repurchase activity will rebound to normalized levels (targeted at 50% of annual free cash flow) within months, not years

Segment performance

Mobility: Reported a 500bps year-on-year decline in revenue margin, with 400bps of this decline stemming from an optical business model change in the UK that shifts costs to cost of revenue, with no impact on underlying net take rate which remains broadly stable. Mobility operating income margin remains strong at 7.6%. Delivery: Revenue margin is largely stable quarter over quarter. Organic delivery growth accelerated in Q2 2026, with strong trends in both the U.S. and international markets, and Uber gained category share in all large markets. In Q3 2026, there will be a net inorganic headwind to reported delivery growth after lapping the large 2025 Trendyol acquisition in Turkey, offset partially by smaller recent acquisitions (Gityar and Kareem reconsolidation). Total company: Gross bookings grew 22% year-on-year to over $58 billion, above the high end of prior guidance, marking the fourth consecutive quarter of 20%+ growth. Non-GAAP EPS grew 35% year-on-year. Trailing 12-month free cash flow exceeded $10 billion for the first time in company history.

Risks & headwinds

- AV commercialization and scaling is progressing slower than AI software development due to physical system constraints and required regulatory approval market-by-market; public and regulatory concerns around safety, job displacement, and congestion have slowed adoption in some markets, and improper engagement with stakeholders could lead to additional restrictive regulation that delays deployment - Brazil mobility trip volumes are under pressure from increased competition for two-wheeler supply: increased competition in Brazilian food delivery has driven up supply acquisition costs, forcing Uber to shift incentives from mobility to delivery, pressuring mobility trip growth while leaving market share and bottom-line results unaffected - AV technology still faces unaddressed edge case challenges, including safe navigation around school zones, emergency vehicles, and traffic signal outages, which require further development and regulatory dialogue to resolve - The $10 billion multi-year AV investment program carries near-to-medium term P&L impact that will be disclosed as deployment scales, and full execution depends on successful partner delivery of vehicle and technology commitments - Sustained competitive pressure in high-growth emerging markets like Brazil could pressure margins long-term if competition for supply does not ease

Analyst Q&A

• Q: What 12-month milestones is management focused on for AV mobility and delivery to confirm the strategy is on track?

  A: The top priority is increasing the number of live markets, hitting 15 by the end of 2026 with planned launches across multiple partners globally, with further expansion in 2027. Management is also tracking service quality, per-vehicle utilization (which currently hits mid-20s to low 30s trips per vehicle per day, enough for viable unit economics) and accelerating data collection to improve model performance. For AV delivery, management is also pursuing drone delivery partnerships that can cut delivery times to 10-15 minutes, with ongoing testing and development.

• Q: What is driving the recent acceleration in U.S. mobility growth, and is it sustainable?

  A: While the World Cup provided a expected temporary tailwind, the acceleration is broad and sustainable, driven by three core factors: insurance cost savings that are being reinvested back into the market, particularly in California where trip growth is outpacing the rest of the country; strong traction from product innovation across premium (Reserve, Uber Black, Uber for Business) and affordable (Wait & Save) products, with U4B growing 40% year-on-year; and strong growth from underpenetrated sparse U.S. markets, where less than 10% of eligible consumers have used Uber in the past 12 months, compared to over 50% in dense markets. Record first-time user growth is additionally driven by low-cost products that open the platform to new consumer segments, cross-platform growth between Rides and Eats (only 20% of users currently use both products, and cross-product users grow 1.5x faster than single-product users), and new demographic-focused products like Women Preferred and Uber Teens.

• Q: Can you clarify Uber's relationship with Waymo, and update on competitive dynamics for mobility in Brazil?

  A: In Brazil, increased competition in food delivery has driven up competition for shared two-wheeler supply, increasing acquisition costs and forcing Uber to shift incentives from mobility to delivery, pressuring mobility trip volumes while leaving market share unchanged, with limited bottom-line impact because two-wheeler mobility has low existing margins. For Waymo, Waymo remains an important partner, and operations in Austin and Atlanta continue to run strong with no plans to exit those markets. However, Uber is pursuing a multi-partner AV strategy to avoid dependency on one provider, and will continue adding new partners and expanding to dozens of additional markets by 2028, with AV penetration currently still less than 0.5% of Uber's total weekly trips, giving the company time to develop the ecosystem.

• Q: How has AI allowed Uber to temper headcount growth, and what is the framework for allocating incremental cash?

  A: AI is already driving measurable productivity gains across the company: 100% of Uber's engineers use AI coding tools, which has doubled measured code output, allowing slower headcount growth for tech teams. AI is also expected to drive productivity gains in customer support and marketing. Additionally, the company has conducted surgical organizational reviews, cutting 10-20% of headcount in overlapping teams to drive savings. Any savings generated from these efficiency gains are reinvested back into the core marketplace to support growth and improve consumer and earner value.