The ride-hailing giant said it expects its adjusted effective tax rate (ETR) to be between 22% and 25% this year—higher than many had anticipated.
“Our ETR reflects our business with operations across 70+ countries, which results in a tax profile comparable to large US multinationals with significant global operating presence,” Uber said.
Affordability Drives Growth but Limits Margins
Uber reported that trips rose 22% in the fourth quarter, as more riders chose budget-friendly options such as shared rides and other low-cost mobility products.
The company has been openly prioritizing affordability over rapid margin expansion, a strategy it announced in November. At the time, Uber said it would intentionally slow the pace of margin growth after proving its business model can generate profits at scale.
Uber executives have said that these investments helped accelerate mobility growth, but also constrained near-term profit gains.
Q1 Outlook Misses Estimates
Uber expects first-quarter adjusted earnings per share (EPS) to fall between 65 cents and 72 cents, below the 76 cents analysts had expected. For the fourth quarter, Uber posted 71 cents EPS, missing expectations of 79 cents.
The company previously announced it would replace quarterly adjusted core profit guidance with adjusted profit per share, aiming to give investors a clearer view of recurring operating performance.
Gross Bookings Remain Strong
Uber forecast first-quarter gross bookings between $52.0 billion and $53.5 billion, above analyst expectations of $51.16 billion, based on LSEG data.
CEO Dara Khosrowshahi said improving pricing conditions and lower insurance costs should support faster U.S. growth and margin expansion later this year.
CFO Shakeup and Accounting Change
Uber announced a leadership change in its finance team. Prashanth Mahendra-Rajah, CFO since November 2023, will step down, and Balaji Krishnamurthy, a former Goldman Sachs executive who joined Uber in 2019, will take the role.
The company also said a change in how it accounts for parts of its UK business will reduce reported mobility revenue margin by about 350 basis points in the first quarter and throughout 2026—without affecting underlying profitability.
Looking Ahead: Autonomous Rides and Mixed Segment Growth
Uber is positioning itself for a future in which autonomous ride services scale up, partnering with companies such as Alphabet’s Waymo and Lucid to integrate robotaxis alongside human drivers.
Both mobility and delivery segments grew in the fourth quarter, with delivery gross bookings rising faster than mobility, suggesting strong demand in convenience services, which typically carry lower margins than ride-hailing.