Uber Accelerates into 2026 with Record Growth, Cash Flow, and a Strategic Bet on Autonomous Partnerships
Uber Technologies (NYSE: UBER) closed the books on a robust 2025, showcasing financial momentum that executives believe sets the stage for a new era of growth centered on platform expansion and strategic autonomy deals. The fourth-quarter and full-year earnings call painted a picture of a company transitioning from a pure growth story to a scaled, cash-generating platform with clear strategic priorities.
CEO Dara Khosrowshahi hailed the results, noting the platform's annualized trip run rate has accelerated to 15 billion, powered by over 200 million monthly active users. This scale translated directly to the bottom line: Q4 gross bookings jumped 22% year-over-year, marking the company's fifth consecutive year of annual bookings growth exceeding 20%. Perhaps more critically for investors, Uber generated $9.8 billion in free cash flow, a 42% increase, underscoring its improved financial maturity.
A significant announcement was the planned CFO transition. Prashanth Mahendra-Rajah, credited with helping Uber achieve investment-grade status and launch its first share buyback program, will step down on February 16. He will be succeeded by Balaji Krishnamurthy, a veteran of the company's finance team. Management emphasized a smooth handover, with Mahendra-Rajah stating his departure was for a new opportunity to "serve America."
On capital allocation, the message was consistent and shareholder-friendly. Krishnamurthy reiterated commitments to reinvest in the core, advance autonomy, and pursue selective M&A, while remaining an "aggressive" buyer of Uber stock, which he described as "really cheap." The company expects to continue its share repurchase program at a steady pace.
The Autonomous Roadmap Takes Center Stage
Beyond the numbers, the call's dominant theme was Uber's accelerating foray into autonomous vehicles (AVs). Khosrowshahi positioned AVs not as a threat, but as a market expander that benefits Uber's asset-light platform model. He cited data from early integrations in cities like San Francisco, Austin, and Atlanta, where Uber's gross bookings have accelerated post-AV deployment.
"Autonomy grows the overall economic pie for mobility," Khosrowshahi argued, contrasting Uber's high-utilization platform model with standalone AV operations. He outlined an ambitious partnership-driven rollout, expecting to be in 15 cities by year-end through collaborations with firms like Waymo, NVIDIA, and Waabi. While acknowledging early-stage unit economics are lower, he asserted deals being signed today are expected to be profitable at scale based on current fare structures.
Addressing concerns of an AV "winner-take-most" future, Khosrowshahi pointed to the hardware ecosystem, suggesting multiple suppliers will coexist. He projected that in a decade, most new cars will have advanced self-driving software, with Uber's platform ready to integrate them.
Diversification Beyond the Core
Executives also detailed growth levers beyond ride-hailing. Krishnamurthy pushed back on the notion that Uber's profits are concentrated in major U.S. metros, revealing that nearly 75% of U.S. profits come from outside the top markets, and 60% of mobility gross bookings are international.
Product innovation is fueling user engagement. Services like Moto (motorcycle rides) act as entry points for price-sensitive users, while Reserve (scheduled rides) captures higher-margin, reliability-focused trips like airport rides. 40% of consumers now use more than one Uber product. The membership program is also booming, growing 55% year-over-year.
The advertising business emerged as a notable bright spot. Krishnamurthy stated ad penetration in delivery has surpassed the company's 2% target, with enterprise ad growth outpacing small businesses. He hinted at significant untapped potential in grocery, retail, and mobility advertising.
Delivery growth remains strong, attributed by Khosrowshahi to factors like grocery expansion—highlighting a multi-year exclusive deal with Coles in Australia—and improved user frequency.
Analyst & Investor Reactions
"The cash flow story is now undeniable," said Michael Tan, a portfolio manager at Horizon Growth Capital. "Uber has graduated to a 'grown-up' tech company. The disciplined capital return and the strategic, partnership-based approach to AVs de-risk what could have been a massive capex sinkhole."
Sarah Chen, a transportation analyst at ClearView Insights, offered a more measured take: "The fundamentals are strong, but the AV narrative requires scrutiny. Profitable partnerships at scale are unproven. They're betting on becoming the indispensable aggregation layer, but that depends on the hardware players not bypassing them."
"The CFO change right after achieving investment grade is curious timing," remarked David Feld, an independent investor and frequent market commentator. "'Serving America' is a vague exit line. Combined with the aggressive buyback commentary while pushing a costly long-term AV vision, it feels like management is trying to please everyone in the room. The real test is whether this 'durable growth' framework holds when economic conditions tighten."
As Uber moves into 2026, it appears to be balancing a triad of priorities: rewarding shareholders with substantial cash returns, funding targeted growth in newer verticals like advertising and delivery, and making a capital-light but strategically significant bet on the future of autonomous mobility.