UBER

Salesforce CRM) stock came roaring back after the software giant posted a strong Q2 report after-market hours on Wednesday evening. CRM shares spiked more than 20% on Thursday, marking their largest single-day jump since 2020, and are up another 3% in Friday’s trading session. The rally reflects renewed confidence that Salesforce can turn artificial intelligence into a growth catalyst rather than be disrupted by AI. Image Source: Zacks Investment Research Salesforce posted Q2 revenue of $11.34 billion, rising nearly 11% year over year and edging past the Zacks Consensus of $11.31 billion. More eye-catching was Salesforce’s Q2 adjusted net income of $3.53 billion. This translated into adjusted EPS of $5.90, which soared 103% from $2.91 per share a year ago and crushed expectations of $3.27 by more than 80%. However, it’s noteworthy that the enormous EPS beat was heavily boosted by gains on Salesforce’s strategic investments, including in artificial intelligence firm Anthropic. Excluding that benefit, underlying adjusted EPS was reportedly around $3.37, which still topped expectations but paints a more realistic picture of operating profitability. Meanwhile, operating cash flow surged 71% to $1.3 billion and free cash flow jumped 81% to $1.1 billion. Current remaining performance obligations (cRPO), an important indicator of future sales, climbed 14% to $33.5 billion. Image Source: Zacks Investment Research More importantly, management raised its current fiscal 2027 revenue guidance to $46.1-$46.4 billion (+11% growth), up from $45.9-$46.2 billion previously, and now forecasts adjusted EPS of $16.67-$16.71 (+33% growth), up from its prior $14.06-$14.12 outlook. Q3 revenue is expected at $11.42-$11.5 billion, representing an 11%-12% increase.Of course, part of the dramatic full-year EPS increase reflects the strategic investment gains already realized. This makes the higher revenue outlook and sustained 14% cRPO growth arguably more important indicators of Salesforce’s underlying momentum, with the current Zacks Consensus sales forecast pictured below. Image Source: Zacks Investment Research Salesforce’s AI story is rapidly becoming measurable through its AI platform Agentforce and its supporting data foundation, Data 360. Agentforce and Data 360 annual recurring revenue (ARR) reached nearly $3.9 billion, soaring more than 210% YoY, with Agentforce ARR surpassing $1.5 billion and increasing more than 240%. Salesforce also delivered 3.2 billion Agentic Work Units (AWUs) during Q2, nearly doubling sequentially, with each AWU representing a discrete task completed by an AI agent and the conversion of intelligence into an actionable result. Adding fuel to that momentum is Salesforce’s expanded partnership with Anthropic and the launch of Claudeforce. The offering combines Claude’s reasoning capabilities, which are Anthropic’s flagship series of large language models (LLMs), with Salesforce’s customer data, workflows and business logic, initially providing 37 prebuilt sales skills that can analyze pipelines, prepare for meetings and take governed actions directly from Claude. Salesforce in Claude is already being piloted and is expected to enter open beta in September. Perhaps more encouraging is the caliber of companies adopting Salesforce’s AI offerings. Management highlighted Cisco Systems CSCO) as expanding its AI investment with Salesforce, while Dell Technologies DELL) is using Agentforce for operations and supply-chain workflows. Furthermore, Uber UBER) is deploying Agentforce to improve lead conversion, while Robinhood HOOD) is incorporating Salesforce’s built-in AI agent, Slackbot, across its workforce. Salesforce also counts household names such as PepsiCo, Coca-Cola, Home Depot, Costco, Ford, and Disney among its broader customer base. The valuation conversation has certainly changed after Salesforce’s explosive two-day move, but CRM shares still don't appear excessively expensive compared with the broader market or its software peers. Despite the sharp rally, Salesforce’s 24X forward earnings multiple is just a slight premium to its Zacks Internet-Software Industry average of 21X and the benchmark S&P 500’s 22X. Image Source: Zacks Investment Research Salesforce’s Q2 report significantly strengthened the bullish case for CRM stock. Accelerating AI adoption, stronger cRPO growth, impressive cash generation, and raised revenue guidance suggest the company is beginning to prove that generative and agentic AI can increase the value of its software ecosystem rather than replace it. Still, after a more than 25% surge in less than two trading sessions, investors may not want to aggressively chase the rally. Much of the headline earnings beat came from investment gains, and sustained organic revenue acceleration will be key to supporting another leg higher. For now, CRM shares land a Zacks Rank #3 (Hold), making the stock compelling to keep on the radar while investors digest its dramatic post-earnings revaluation. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce, Inc. (CRM) : Free Stock Analysis Report Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report Dell Technologies Inc. (DELL) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report Robinhood Markets, Inc. (HOOD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Delivery Hero SE? Here are five stocks we like better. Delivery Hero raised its 2026 outlook after second-quarter GMV growth accelerated to 11.3% like-for-like. It now expects 9%–11% GMV growth, 17%–19% revenue growth, adjusted EBITDA of €960 million–€1 billion, and free cash flow above €250 million. The company’s “Everyday App” strategy is gaining traction, with Quick Commerce GMV up 32% and subscriptions representing 47% of group GMV. Dmart orders rose 39%, while higher-margin offerings such as subscriptions, advertising, and own delivery helped revenue outpace GMV growth. Uber’s proposed €41.50-per-share takeover has board support, subject to review of the offer document and regulatory approvals. Delivery Hero also plans to sell operations in 14 countries to SSW Partners for about €1.4 billion and expects its Taiwan sale to Grab to close in the fourth quarter. Delivery Hero (ETR:DHER) reported accelerating second-quarter growth and raised its full-year outlook across gross merchandise value, revenue, adjusted EBITDA and free cash flow, as the company said investments in its “Everyday App” strategy were supporting both customer engagement and profitability. Chief Executive Officer Niklas Östberg said group GMV rose 11.3% on a like-for-like basis in the second quarter, accelerating from 8.8% growth in the first quarter. Adjusted EBITDA increased 4%, or 11% on a like-for-like basis, despite what the company described as a period of heightened investment. → Quantum Computing Is Raising the Stakes for Cybersecurity: 5 Stocks to Watch For the first half, Delivery Hero reported GMV of €25.7 billion, up 10% like-for-like, while revenue rose 18% like-for-like to €7.8 billion. Adjusted EBITDA increased 4% year over year to €427 million. Free cash flow before extraordinary items reached €348 million, although the company said this result benefited from working-capital timing effects that are expected to reverse in the second half. Delivery Hero increased its 2026 outlook following the first-half performance. The company now expects: Like-for-like GMV growth of 9% to 11%, compared with prior guidance of 8% to 10%. Like-for-like revenue growth of 17% to 19%, up from 14% to 16%. Adjusted EBITDA of €960 million to €1 billion, compared with a previous range of €910 million to €960 million. Free cash flow before extraordinary items of more than €250 million, up from more than €200 million. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? In the second quarter, orders grew 11% like-for-like to 981 million, while GMV reached €13.2 billion and revenue totaled €4 billion. Revenue growth outpaced GMV growth, which Chief Financial Officer Marie-Anne Popp attributed to the scaling of Quick Commerce, subscription and advertising offerings, and the expansion of the company’s own delivery operations. Popp said the company expects free cash flow to be negative in the second half as working-capital benefits reverse, Dmart capital expenditures and lease payments increase, and tax payments rise. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding Östberg said the Everyday App strategy is intended to broaden Delivery Hero’s offering beyond food delivery into grocery and non-grocery categories. Quick Commerce accounted for 18% of group GMV and grew 32% like-for-like during the quarter. The company’s Dmarts, or grocery fulfillment centers, were a major contributor to that growth. Dmart orders increased 39% year over year in the second quarter, marking the sixth consecutive quarter of acceleration since the first quarter of 2025. Orders per store rose 28%, which Östberg said indicated growth was being driven by existing locations rather than store openings alone. Subscribers represented 47% of group GMV, up 12 percentage points from a year earlier. In Saudi Arabia, subscribers accounted for 63% of GMV, the highest share in the group. Östberg said customers using multiple Quick Commerce verticals spend five times more than single-vertical customers. The company also highlighted artificial-intelligence tools for merchants. Östberg said an AI assistant at Glovo helps restaurants identify opportunities such as underperforming dishes, unanswered reviews and promotional timing. Restaurants using the tool increased orders by 15%, he said. The tool currently supports more than 40,000 partners out of approximately 1.5 million on the platform. In MENA, GMV increased 15% like-for-like to €2.4 billion, while segment revenue rose 14% to €1.08 billion. Saudi Arabia delivered further growth acceleration, according to Popp, with Quick Commerce growth exceeding 60%. MENA adjusted EBITDA was marginally softer in the first half as the business absorbed investments and Talabat shifted its mix toward groceries and retail. Asia GMV grew 6% like-for-like, with the company citing an improving performance in South Korea. Segment revenue increased 11% like-for-like to €1.63 billion. Quick Commerce in South Korea grew 39% year over year, while the share of own delivery logistics in Asia rose five percentage points to 78%. Responding to an analyst question, Östberg said foreign-exchange movements had weighed on reported results in South Korea, while like-for-like order and GMV growth were stronger. He characterized the market as mature but said Delivery Hero had seen a generally positive category-share trend over the past 12 to 18 months and expected continued Quick Commerce momentum. Europe generated 8% like-for-like GMV growth to €2.6 billion and 8% revenue growth to €662 million. Advertising technology revenue in Europe grew 32% year over year, while the segment’s adjusted EBITDA-to-GMV margin improved by 70 basis points. In the Americas, GMV grew 29% like-for-like to €1.35 billion, accelerating from 18% in the first quarter. Revenue increased 31% to €325 million. Adjusted EBITDA rose 52% year over year to €70.3 million in the first half. Östberg also updated investors on Uber’s proposed public takeover offer for Delivery Hero shares it does not already own. Uber announced the proposed cash offer of €41.50 per share on July 16, which Delivery Hero said represented an approximate 35% premium to the three-month volume-weighted average share price before the announcement. The management board and supervisory board unanimously support the offer and intend to recommend that shareholders tender their shares, subject to their review of Uber’s published offer document. The initial acceptance period began on the date of the call and is scheduled to end Nov. 5, 2026. Closing is expected in the second half of 2027, subject to customary conditions and regulatory approvals. Delivery Hero also said it plans to sell businesses in 14 countries to SSW Partners for approximately €1.4 billion as part of the transaction structure. Separately, the company expects its previously announced $600 million sale of its Taiwan business to Grab to close in the fourth quarter. Östberg said the company had evaluated a broad range of strategic alternatives and concluded that the Uber transaction was the best outcome for shareholder value. He said Delivery Hero had worked with antitrust advisers on the transaction structure and was confident the deal would receive approval, though he acknowledged the process could take time. Delivery Hero SE offers online food ordering and delivery services. It operates approximately in 70 countries in Asia, the Middle East, Africa, Europe, and Latin America. The company was founded in 2011 and is headquartered in Berlin, Germany. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Delivery Hero H1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Uber (NYSE:UBER) and the rest of the gig economy stocks fared in Q2. The iPhone changed the world, ushering in the era of the “always-on” internet and “on-demand” services - anything someone could want is just a few taps away. Likewise, the gig economy sprang up in a similar fashion, with a proliferation of tech-enabled freelance labor marketplaces, which work hand and hand with many on demand services. Individuals can now work on demand too. What began with tech-enabled platforms that aggregated riders and drivers has expanded over the past decade to include food delivery, groceries, and now even a plumber or graphic designer are all just a few taps away. The 6 gig economy stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 11.2% below. While some gig economy stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.8% since the latest earnings results. Notoriously funded with $7.7 billion from the Softbank Vision Fund, Uber (NYSE:UBER) operates a platform of on-demand services such as ride-hailing, food delivery, and freight. Uber reported revenues of $14.19 billion, up 12.2% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with strong growth in its users. Interestingly, the stock is up 12.3% since reporting and currently trades at $80.85. Is now the time to buy Uber? Access our full analysis of the earnings results here, it’s free. Founded by Stanford students with the intent to build “the local, on-demand FedEx", DoorDash (NASDAQ:DASH) operates an on-demand food delivery platform. DoorDash reported revenues of $4.45 billion, up 35.6% year on year, outperforming analysts’ expectations by 2.5%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates. DoorDash pulled off the biggest analyst estimate beat and fastest revenue growth among its peers. The company reported 970 million service requests, up 27.5% year on year. The market seems happy with the results as the stock is up 12.7% since reporting. It currently trades at $233.64. Is now the time to buy DoorDash? Access our full analysis of the earnings results here, it’s free. Based in Tel Aviv, Fiverr (NYSE:FVRR) operates a fixed price global freelance marketplace for digital services. Fiverr reported revenues of $97.78 million, down 10% year on year, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted full-year EBITDA guidance missing analysts’ expectations and a decline in its buyers. Fiverr delivered the weakest guidance update and weakest full-year guidance update in the group. The company reported 2.7 million active buyers, down 20.6% year on year. As expected, the stock is down 17.3% since the results and currently trades at $9.58. Read our full analysis of Fiverr’s results here. Formed through the 2013 merger of Elance and oDesk, Upwork (NASDAQ:UPWK) is an online platform where businesses and independent professionals connect to get work done. Upwork reported revenues of $191.7 million, down 1.7% year on year. This result surpassed analysts’ expectations by 0.9%. Zooming out, it was a softer quarter as it recorded full-year EBITDA guidance missing analysts’ expectations. Upwork achieved the highest guidance raise and highest full-year guidance raise among its peers. The stock is down 12.2% since reporting and currently trades at $8.63. Read our full, actionable report on Upwork here, it’s free. Founded by Logan Green and John Zimmer as a long-distance intercity carpooling company Zimride, Lyft (NASDAQ: LYFT) operates a ridesharing network in the US and Canada. Lyft reported revenues of $1.84 billion, up 16.1% year on year. This print topped analysts’ expectations by 1.9%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and strong growth in its users. The company reported 30.5 million users, up 16.9% year on year. The stock is up 8.3% since reporting and currently trades at $17.65. Read our full, actionable report on Lyft here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Uber Technologies UBER, based in San Francisco, CA, has embraced an ambitious global expansion strategy while diversifying its operations. Although ride-sharing remains the principal business, the company has developed meaningful additional revenue streams through Uber Eats, its food-delivery service, and Uber Freight, the logistics marketplace. This broad-based strategy demonstrates Uber’s intention to become an integrated transportation and delivery ecosystem rather than remain exclusively a ride-hailing provider. Lyft LYFT, which is also headquartered in San Francisco, CA, has pursued a more focused strategy. Operating predominantly in the United States, the company remains largely centered on ride-sharing and has placed considerably less emphasis on diversification. This approach enables Lyft to allocate more resources to enhancing its core services. But it also limits the company’s participation in potentially faster-growing areas such as delivery and international markets. Both companies released their second-quarter 2026 results earlier this month. Considering their distinct strategies, it is useful to examine which stock offers the more attractive investment opportunity following their latest quarterly earnings reports. On Aug. 5, Uber reported strong second-quarter 2026 results with respect to the bottom line. Earnings of $1.17 per share rose 85.7% year over year and exceeded the Zacks Consensus Estimate by 41%. Quarterly revenues of $14.19 billion increased 12.2% year over year. The company saw impressive growth in its delivery and mobility segments, boosting the top line. Gross bookings grew 22% on a constant currency basis year on year to more than $58 billion, above the high end of the company’s guidance and marking the fourth consecutive quarter above 20% growth for this key metric. Trips also accelerated with results benefiting from travel linked to the FIFA World Cup. Uber’s ride-hailing business benefited from the mega event with millions of tourists taking rides across host cities in the United States, Canada and Mexico. Operating income also increased significantly during the June quarter, with operating cash flow increasing 12% to $2.9 billion. Moreover, trailing 12-month free cash flow exceeded $10 billion for the first time. For the third quarter, Uber expects gross bookings in the band of $58.25-$60.25 billion. Unlike the previous few quarters, foreign exchange is likely to trim the metric by roughly 1 percentage point. Despite that, the gross bookings forecast implies 18% to 22% year-over-year growth on a constant-currency basis. Adjusted EBITDA is forecasted in the $2.86-$2.96 billion band. Third-quarter adjusted earnings per share are expected in the range of 80-84 cents. The company’s earnings beat estimates three of the past four quarters, missing the mark on the other occasion. The average beat is 99.5%. Uber Technologies price-eps-surprise | Uber Technologies Quote Uber’s progress in establishing a strong presence in the rapidly growing autonomous vehicle (“AV”) market is impressive. The company is pursuing a partnership-oriented strategy to take advantage of emerging opportunities. By collaborating with several technology leaders, Uber can advance its automation goals while avoiding the significant research and development expenses associated with developing AV capabilities internally. On Aug. 6, LYFT reported second-quarter 2026 earnings of 29 cents per share, missing the Zacks Consensus Estimate of 39 cents by 25.6%. Revenues of $1.84 billion beat the consensus estimate of $1.81 billion and rose 16.1% year over year. Growth was fueled by record rides and gross bookings, while Active Riders reached a record 30.5 million. Adjusted EBITDA also advanced sharply, reflecting stronger operating momentum even as marketing and administrative costs increased. Gross bookings were $5.5 billion in the second quarter, increasing 22.6% from the year-ago period. Rides climbed 11.8% year over year, reaching a record level as growth accelerated sequentially. The company recorded strength across Freenow by Lyft in Europe, North American rideshare and Lyft Urban Solutions. Active Riders grew 16.9% year over year, marking the seventh consecutive quarter of double-digit growth. For the September quarter, gross bookings are expected in the band of $5.50 billion to $5.67 billion, up approximately 15% to 19% year over year. Adjusted EBITDA is anticipated in the band of $183-$203 million. Adjusted EBITDA margin (calculated as a percentage of Gross Bookings) is expected to be approximately 3.3% to 3.6%. The company’s earnings lagged the consensus mark in each of the past four quarters, with the average miss being 57.9%. Lyft, Inc. price-eps-surprise | Lyft, Inc. Quote The disappointing earnings history has contributed to Lyft's shares performing worse than Uber so far this year Image Source: Zacks Investment Research Lyft is trading at a forward sales multiple of 0.82X, comparing favorably to Uber’s 2.4X. LYFT has a Value Score of B, compared with UBER’s C. Image Source: Zacks Investment Research Uber’s commitment to strategic diversification and shareholder-oriented initiatives remains an important competitive advantage. Backed by a substantial market capitalization of $152.5 billion, the company appears capable of weathering the current macroeconomic uncertainty. Its diversification strategy — which encompasses acquisitions, international growth and innovative service offerings — has helped reduce risk and enhance its competitive position. Although Lyft, like Uber, continues to record strong gross bookings, the weaker earnings surprise and comparatively lackluster stock performance put it at a disadvantage. Our analysis indicates that Uber is the more compelling contender in this comparison. Consequently, Uber appears better positioned than Lyft following the companies’ respective second-quarter 2026 earnings announcements. Both stocks currently have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lyft, Inc. (LYFT) : Free Stock Analysis Report Uber Technologies, Inc. (UBER) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Robotaxi revenues growth — Robotaxi revenues reached US$12.1 million, up 691.2% YoY in Q2, with fare-charging revenues rising by 849.3%. Rapid fleet scaling — Our Robotaxi fleet expanded to 1,975 vehicles1, as we continue scaling toward more than 3,500 vehicles by year end. Strengthening our presence in tier-one cities — PonyPilot registered users in China surpassed 1.5 million2, supported by increasing fleet density and broader operating coverage across key areas. Accelerating global expansion — We have secured multiple joint deployment model partners across overseas markets, including Uber for the contracted deployment of more than 2,000 Robotaxis in Europe, bringing the total number of vehicles under agreements in negotiation across international markets to over 4,000 Robotaxi vehicles. NEW YORK, Aug. 18, 2026 (GLOBE NEWSWIRE) -- Pony AI Inc. (“Pony.ai” or the “Company”) (NASDAQ: PONY; HKEX: 2026), a global leader in achieving large-scale mass production and commercialization of autonomous driving technology, today announced its unaudited financial results for the quarter and six months ended June 30, 2026. Dr. James Peng, Chairman and Chief Executive Officer of Pony.ai, commented, "In the second quarter, we advanced the scaling and commercialization of our Robotaxi business, delivering strong revenue growth, rapid fleet expansion and broader operating coverage across China and overseas markets. In China, solid operating execution and an improved user experience supported a broader range of high-frequency mobility needs. Building on our operating track record in China, we continued to expand our international footprint, working with partners including Uber. At the same time, we will continue to expand our vehicle deployment across China's tier-one cities to further strengthen our competitive position, while capturing incremental contributions from our growing overseas operations. We will continue to advance our full-year plans and are confident in our ability to exceed our full-year Robotaxi services revenues target, with further progress in overseas commercialization adding to our growth momentum.” Dr. Tiancheng Lou, Chief Technology Officer of Pony.ai, commented, "Our strategic early investments in full-stack L4 autonomous technology and advanced world models are now translating into greater efficiency across research and development, testing and fleet operations. PonyWorld 2.0 enables us to deploy Robotaxi fleets across multiple countries and cities simultaneously without a proportionate increase in engineering resources. At the same time, technology-driven improvements in fleet operations enable our teams to support larger fleets. Together, these improvements in research and development and operating efficiency enable faster deployment and scaling of our Robotaxi operations across new markets around the world.” Dr. Leo Wang, Chief Financial Officer of Pony.ai, commented, “Our second-quarter financial performance reflects our continued progress in commercialization and operating efficiency. Robotaxi revenues increased by 691.2% year-over-year to US$12.1 million, led by an 849.3% increase in fare-charging revenues. In addition, revenue contribution from the joint deployment model increased quarter-over-quarter, highlighting the model’s potential to support scalable growth with improved capital efficiency. Operating expenses increased at a much slower pace than revenues, reflecting improving operating leverage and a disciplined approach to capital allocation, with a continued focus on capital efficiency and returns. We remain focused on converting our technology and operating strengths into sustainable, high-quality financial growth.” Scaling Robotaxi Commercialization and Global Operations Delivering Strong Revenue Growth and Operating Momentum. 1) Fare-charging revenues increased by more than 800% year-over-year in the second quarter, with both Robotaxi services revenues and fare-charging revenues reaching record highs. 2) Our global Robotaxi fleet reached 1,975 vehicles1, representing steady progress toward our target of more than 3,500 vehicles by year-end. We expanded our operations in multiple cities, and all of our seventh-generation ("Gen-7") Robotaxis, including the Beijing Automotive Industry Corporation (“BAIC”), Guangzhou Automotive Corporation (“GAC”) and Toyota models, are in daily service. 3) PonyPilot registered users in China surpassed 1.5 million. Expanding High-Density Urban Coverage and High-Value Mobility Use Cases in China. 1) In Guangzhou, we extended our Robotaxi services into the city center, with operations spanning Haizhu District, Tianhe District, Huangpu District and Panyu District. Our operational area expanded by over 300 square kilometers2 from the beginning of this year, covering a population of over 7 million. 2) In Shenzhen, building on our existing coverage of core urban areas, we extended our service network to three major transportation hubs, including Bao'an International Airport, Shenzhen Bay Port, and Shekou Cruise Port. 3) Our Robotaxi fleet continued to operate reliably under a range of demanding real-world conditions, including elevated demand during holiday periods, peak-hour traffic and heavy rainstorms. Advancing Global Expansion through the Joint Deployment Model. 1) Our operating track record in China’s tier-one cities, highlighted by proven driving performance, 24/7 reliability, and positive unit economics ("UE"), provides international partners with confidence in adopting our joint deployment model. 2) We have secured multiple joint deployment model partners across overseas markets, including Uber for the contracted deployment of more than 2,000 Robotaxis in Europe, bringing the total number of vehicles under agreements in negotiation across international markets to over 4,000 Robotaxi vehicles. 3) In Luxembourg, we continued to advance our Robotaxi deployment in collaboration with Bolt and Stellantis. 4) In Singapore, our Robotaxi service became available to the general public through ComfortDelGro's Zig app. 5) Revenue contribution from the joint deployment model in China and overseas increased quarter-over-quarter in the second quarter of 2026. Enhancing R&D and Operating Efficiency with PonyWorld 2.0. 1) PonyWorld 2.0 continued to enhance our R&D efficiency, enabling faster deployment across new countries and cities, without a proportionate increase in engineering resources. 2) Technology-driven improvements in fleet operations continued to increase operational efficiency, enabling our teams to support larger Robotaxi fleets as deployment scales. 3) The combination of improved R&D and operating efficiency enables faster deployment and scaling of our Robotaxi operations across new markets. Advancing Robotruck Commercialization and Gen-4 Robotruck Deployment Delivering Revenue Growth and Advancing Gen-4 Robotruck Deployment. 1) We continued to deepen our collaboration with Sinotrans and Robotruck services revenues increased by 40.0% year-over-year in the second quarter of 2026. 2) Our fourth-generation ("Gen-4") Robotrucks entered into mass production on schedule, supporting broader commercial deployment. Expanding Commercial Deployment at Mawan Port. We partnered with China Merchants Port at Mawan Port in Shenzhen to commence commercial deployment of our Gen-4 driverless Robotrucks, where our Robotrucks operate in mixed-fleet port logistics operations alongside human-driven vehicles. 1 As of June 30, 2026.2 As of August 16, 2026. Unaudited Second Quarter Financial Results Revenues Total revenues were US$36.2 million (RMB245.8 million) in the second quarter of 2026, up 68.8% from US$21.5 million in the second quarter of 2025. The increase was mainly driven by strong growth in Robotaxi services revenues and Robotruck services revenues. Robotaxi services revenues were US$12.1 million (RMB81.9 million) in the second quarter of 2026, representing an increase of 691.2% from US$1.5 million in the second quarter of 2025. Specifically, fare-charging revenues grew by more than 800% year-over-year, primarily driven by the launch of the Gen-7 fleet and the expansion of our commercial Robotaxi operations. In addition, increased vehicle deployments under our joint deployment model also contributed to revenue growth in the quarter. Revenue contribution from the joint deployment model in China and overseas increased quarter-over-quarter in the second quarter of 2026. Robotruck services revenues were US$13.3 million (RMB90.4 million) in the second quarter of 2026, representing an increase of 40.0% from US$9.5 million in the second quarter of 2025. The increase was primarily attributable to growth in freight transportation services, supported by our collaboration with Sinotrans. Intelligent solutions revenues were US$10.8 million (RMB73.4 million) in the second quarter of 2026, broadly flat compared to US$10.4 million in the second quarter of 2025, with growth moderating mainly due to delivery fluctuations from autonomous domain controllers ("ADC"). For financial reporting purposes, our revenues are classified into service revenues and product revenues based on the nature of the underlying revenue streams. Service revenues were US$19.5 million (RMB132.1 million) in the second quarter of 2026, representing an increase of 71.9% from US$11.3 million in the second quarter of 2025, primarily attributable to Robotaxi services revenues and Robotruck transportation services revenues. Product revenues were US$16.8 million (RMB113.7 million) in the second quarter of 2026, representing an increase of 65.4% from US$10.1 million in the second quarter of 2025, primarily attributable to higher deliveries of Robotaxi vehicles under our joint deployment model. Cost of Revenues Total cost of revenues was US$29.9 million (RMB202.7 million) in the second quarter of 2026, representing an increase of 66.0% from US$18.0 million in the second quarter of 2025, broadly in line with revenue trends. Gross Profit and Gross Margin Gross profit was US$6.4 million (RMB43.1 million) in the second quarter of 2026, representing an increase of 83.4% from US$3.5 million in the second quarter of 2025. Gross margin was 17.5% in the second quarter of 2026, compared to 16.1% in the second quarter of 2025. The improvement was mainly driven by an improved revenue mix, with a higher contribution from Robotaxi services, including revenues generated under the joint deployment model, which generated relatively higher margins during the quarter. Operating Expenses Operating expenses were US$72.1 million (RMB489.2 million) in the second quarter of 2026, representing an increase of 11.4% from US$64.7 million in the second quarter of 2025. Non-GAAP3 operating expenses were US$63.0 million (RMB427.8 million) in the second quarter of 2026, representing an increase of 9.6% from US$57.5 million in the second quarter of 2025. The increase was primarily driven by ongoing business expansion and our efforts to enhance R&D capabilities, reflecting our continued investment to support commercialization. Research and development expenses were US$56.2 million (RMB381.6 million) in the second quarter of 2026, representing an increase of 14.7% from US$49.0 million in the second quarter of 2025. Non-GAAP research and development expenses were US$49.9 million (RMB338.4 million), representing an increase of 13.2% from US$44.1 million in the second quarter of 2025. The increase was primarily driven by i) higher personnel-related costs resulting from the expansion of our R&D team to enhance our capacity for large-scale deployment, ii) higher expenses related to development and testing, a portion of which represented non-recurring expenses incurred in connection with the development and engineering validation of the upgraded vehicle models. Selling, general and administrative expenses were US$15.9 million (RMB107.6 million) in the second quarter of 2026, broadly flat compared to US$15.7 million in the second quarter of 2025. Non-GAAP selling, general and administrative expenses were US$13.2 million (RMB89.3 million), broadly flat compared to US$13.5 million in the second quarter of 2025. Loss from Operations Loss from operations was US$65.7 million (RMB446.1 million) in the second quarter of 2026, representing an increase of 7.3% from US$61.3 million in the second quarter of 2025. Non-GAAP loss from operations was US$56.7 million (RMB384.7 million), representing an increase of 4.9% from US$54.1 million in the second quarter of 2025, primarily reflecting higher operating expenses discussed above, partially offset by improved gross profit. Operating loss margin was 181.5% in the second quarter of 2026, narrowing from 285.6% in the second quarter of 2025. Non-GAAP operating loss margin was 156.5% in the second quarter of 2026, narrowing from 252.0% in the second quarter of 2025. The year-over-year reductions in operating loss margin and non-GAAP operating loss margin primarily reflected improved operating leverage as our operations continued to scale. Other Income (Expenses), Net Other expenses, net was US$23.4 million (RMB158.9 million) in the second quarter of 2026, compared to other income, net of US$3.2 million in the second quarter of 2025, primarily attributable to a one-off impairment provision of US$25.0 million recognized on certain prepayments for long-term investments, which were determined to be unrecoverable following proactive strategic adjustments to the relevant business and the engagement of new strategic partners to better support the long-term development. Net Loss Net loss was US$45.4 million (RMB307.7 million) in the second quarter of 2026, representing a decrease of 14.9% from US$53.3 million in the second quarter of 2025, primarily attributable to certain non-operating items, including an increase in fair value of trading securities, partially offset by certain other expenses recognized during the quarter. Non-GAAP net loss was US$44.7 million (RMB303.4 million) in the second quarter of 2026, broadly flat compared to US$44.3 million in the second quarter of 2025, as the changes in fair value of trading securities, share based compensation expenses and the impairment loss discussed above were excluded from the Non-GAAP financial measures. Net loss margin was 125.2% in the second quarter of 2026, narrowing from 248.3% in the second quarter of 2025. Non-GAAP net loss margin was 123.5% in the second quarter of 2026, narrowing from 206.7% in the second quarter of 2025. The year-over-year reductions in both net loss margin and non-GAAP net loss margin primarily reflected improved operating leverage as our operations continued to scale. The reduction in net loss margin also reflected the impact of certain non-operating items. Net Loss Attributable to Pony AI Inc. Net loss attributable to Pony AI Inc. was US$59.8 million (RMB406.0million) in the second quarter of 2026, compared to US$53.1 million in the second quarter of 2025. The difference between total net loss and Net loss attributable to Pony AI Inc. is the US$14.5 million of net income allocated to non-controlling interests during the quarter. Basic and Diluted Net Loss per Ordinary Share Basic and diluted net loss per ordinary share was both US$0.14 (RMB0.95) in the second quarter of 2026, compared to US$0.14 in the second quarter of 2025. Non-GAAP basic and diluted net loss per ordinary share was both US$0.10 (RMB0.68) in the second quarter of 2026, compared to US$0.12 in the second quarter of 2025. Each American depositary share (“ADS”) represents one Class A ordinary share. Balance Sheet Cash and cash equivalents, short-term investments, restricted cash and long-term debt instruments for wealth management were US$1,390.5 million (RMB9,434.9 million) as of June 30, 2026, compared to the balance of US$1,435.5 million as of March 31, 2026. The decrease primarily reflected operating cash outflows and capital expenditures during the period. Capital expenditures were US$32.2 million (RMB218.2 million) in the second quarter of 2026, compared to US$9.6 million in the second quarter of 2025, primarily attributable to investments supporting the continued mass production and deployment of the Gen-7 Robotaxi fleet, as well as expenditures for data centers and servers. 3 Non-GAAP financial measures exclude share-based compensation expenses, changes in fair value of trading securities and a one-off impairment loss on prepayment for long-term investments as discussed under "Other Income (expenses), Net" section above. The exclusion of the impairment loss on prepayment for long-term investments is a new adjustment introduced in the second quarter of 2026. No comparable loss was recognized in the prior periods presented, and prior period non-GAAP measures are therefore unaffected by this change. Such adjustment has no impact on income tax. For further details, see the “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this earnings release. Conference Call Pony.ai will hold a conference call at 8:00 AM U.S. Eastern Time on Tuesday, August 18, 2026 (8:00 PM Beijing/Hong Kong Time on the same day) to discuss financial results and answer questions from investors and analysts. For participants who wish to join the call by phone, please complete the online registration process using the link provided below prior to the scheduled call start time. Upon registration, participants will receive a confirmation email containing dial-in numbers, passcode, and a unique access PIN. Participant Online Registration: https://dpregister.com/sreg/10210583/1047a46a6e9 A replay of the conference call will be accessible through August 25, 2026, by dialing the following numbers: Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.pony.ai. Exchange Rate This press release contains translations of certain RMB amounts into U.S. dollars ("US$" or "USD") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to US$ were made at the rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026, in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or US$ amounts referred could be converted into US$ or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release. Non-GAAP Financial Measures The Company uses non-GAAP financial measures, such as non-GAAP research and development expenses, non-GAAP selling, general and administrative expenses, non-GAAP operating expenses, non-GAAP loss from operations, non-GAAP net loss, non-GAAP net loss attributable to Pony AI Inc., non-GAAP basic and diluted net loss per ordinary share, and non-GAAP free cash flows, in evaluating its operating results and for financial and operational decision-making purposes. By excluding the impact of share-based compensation expenses, changes in fair value of trading securities and impairment loss on prepayment for long-term investments, the Company believes that the non-GAAP financial measures help identify underlying trends in its business and enhance the overall understanding of the Company’s past performance and future prospects. The Company also believes that the non-GAAP financial measures allow for greater visibility with respect to key metrics used by the Company’s management in its financial and operational decision-making. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as analytical tools and when assessing the Company’s operating performance, investors should not consider them in isolation, or as a substitute for financial information prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. The Company mitigates these limitations by reconciling the non-GAAP financial measures to the most comparable U.S. GAAP performance measures, all of which should be considered when evaluating the Company’s performance. For more information on the non-GAAP financial measures, please see the table captioned “Unaudited Reconciliation of U.S. GAAP and Non-GAAP Results” set forth at the end of this earnings release. About Pony AI Inc. Pony AI Inc. (NASDAQ: PONY; HKEX: 2026), founded in 2016, is a global leader in achieving large-scale mass production and commercialization of autonomous driving technology. Pony.ai is committed to delivering safe, advanced, and reliable autonomous driving technology and solutions. At the heart of Pony.ai’s strategy is its proprietary world model PonyWorld and its Virtual Driver technology. Together, they power the development and scaling of its Robotaxi services, Robotruck services, and Intelligent solutions businesses. With operations spanning China, Europe, East Asia, the Middle East, and beyond, Pony.ai stands among a select few companies globally to achieve fully driverless commercial operations. Pony.ai has forged deep and extensive partnerships across the autonomous driving value chain, enabling it to accelerate the commercialization of autonomous driving in line with its ultimate vision: “Autonomous Mobility Everywhere.” For more information, please visit: https://ir.pony.ai. Safe Harbor Statement This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to," and similar statements. Statements that are not historical facts, including statements about Pony.ai’s beliefs, plans, and expectations, such as the expectation of exceeding annual robotaxi services revenue target, expected Robotaxi year-end fleet size and expected city deployment, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in Pony.ai’s filings with the SEC and the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release, and Pony.ai does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor inquiries, please contact: Pony.aiInvestor RelationsEmail: [email protected] 4 Such adjustments have no impact on income tax for the three-month and six-month periods ended June 30, 2025 and 2026, as no deferred tax has been recognized in respect of the temporary differences arising from these Non-GAAP adjustments.5 Free Cash Flows are a non-GAAP measure, commonly defined as cash flows from operating activities as presented in the statement of cash flows, less capital expenditures. However, in the context of the Company, operating cash flows are a cash out (i.e., a cash outflow). Free Cash Flows represent the total of operating cash outflows plus capital expenditures. This metric reflects the Company's important cash outflows, as it combines the funds required to maintain operations and invest in growth.

Interested in Baidu, Inc.? Here are five stocks we like better. AI drove a growing share of Baidu’s business: AI-powered operations represented half of general-business revenue, with AI Cloud Infrastructure revenue up 50% year over year and GPU cloud revenue up 283%. Total revenue nevertheless fell 4% year over year to RMB 31.3 billion, while management continued to emphasize disciplined investment and potential margin expansion. Advertising remains under pressure during the AI search transition: Baidu is prioritizing AI search quality and user experience over near-term monetization, and expects online marketing revenue to remain pressured in the second half as users shift toward AI chatbots and new formats. Apollo Go expanded its autonomous-driving footprint: The unit completed about 1 million fully driverless rides in Q2 and began or planned testing and commercial operations across markets including Hong Kong, London, Dubai, Switzerland and Kazakhstan. Uber’s AV Pivot: Growth Opportunity or Margin Risk? Baidu (NASDAQ:BIDU) said its AI-powered businesses accounted for half of its general business revenue in the second quarter of 2026, as the company reported rapid growth in AI cloud infrastructure and outlined continued investment in chips, models, applications and autonomous driving. Total revenue was RMB 31.3 billion, down 2% from the prior quarter and 4% from a year earlier. Baidu’s general business generated RMB 25.2 billion in revenue, down 3% sequentially and 4% year over year, while iQIYI revenue was RMB 6.3 billion, up 1% sequentially but down 5% year over year. → AMG’s Alternatives Boom Powers Record Growth Why Alibaba's New 5nm Chip Could Be a Game Changer Net income attributable to Baidu was RMB 2.3 billion, or RMB 5.74 per diluted ADS. Non-GAAP net income was RMB 2.6 billion, or RMB 7.22 per diluted ADS. The company reported operating income of RMB 3 billion and a 10% operating margin; non-GAAP operating income was RMB 3.8 billion, for a 12% margin. CEO Robin Li said Baidu Core AI-powered business revenue reached RMB 12.5 billion, representing half of Baidu’s general business revenue. AI Cloud Infrastructure revenue rose 50% year over year, while GPU cloud revenue grew 283%, accelerating from 184% growth in the first quarter. → Microsoft's Maia 300 Chip Targets NVIDIA's AI Dominance MarketBeat Week in Review – 01/05 - 01/09 Li attributed cloud growth to demand for training and inference computing, increased spending by existing clients and expansion across sectors including internet services, autonomous driving, smartphones, financial services and embodied AI. Revenue from embodied AI customers grew about sixfold year over year, he said. Dou Shen, executive vice president of Baidu AI Cloud Group, said GPU cloud has a more attractive margin profile than traditional CPU cloud and is becoming a larger part of cloud revenue. He also said Qianfan, Baidu’s model-as-a-service platform, recorded more than ninefold year-over-year growth in revenue from external customer token usage. → The Metals Company’s Big Bet Now Comes Down to a License Management said it expects AI Cloud Infrastructure growth to remain strong in the second half, with potential for further acceleration. Shen said margin expansion could be supported by a growing GPU cloud mix, better resource utilization, operating efficiency, model-serving revenue and cost advantages from Baidu’s full-stack AI capabilities and self-developed chips. CFO Henry Haijian He said Baidu remains in an AI investment cycle but intends to invest with discipline and focus on return on invested capital, operating efficiency and cash flow. The company had RMB 283.1 billion in total cash and investments as of June 30 and generated RMB 3.4 billion in operating cash flow during the quarter. Li said demand for Baidu’s Kunlun AI chips remained robust and broadened across industries. The company continued expanding compatibility with Chinese foundation models and frameworks, including Kimi K3, GLM 5.2, MiniMax M3 and Hunyuan 3. Baidu is advancing its M100 chip for large-scale inference and its upcoming M300 chip. Shen said the proposed listing process for Kunlunxin remains ongoing, with the company planning to update the market when it has more information. He said growing demand for AI computing and constrained domestic supply create an opportunity for high-performance, reliable and cost-efficient domestic AI chips. On foundation models, Li said Baidu has reorganized its model teams and added AI talent as it seeks to improve ERNIE’s competitiveness. He said the company will prioritize model capabilities that support Baidu applications, including AI search, digital humans, Miaoda, Famou Agent and DuMate. Baidu said its Miaoda coding platform’s monthly active users in June were 67% higher than in March after the launch of Miaoda 3.0. The company also said AI daily active user penetration across Baidu Wenku and Baidu Drive rose 27.4% year over year in June. ERNIE Assistant daily active users increased 83% year over year, while average daily conversation rounds more than tripled. Julius Rong Luo, executive vice president of Baidu’s Mobile Ecosystem Group, said the company has focused its AI search effort on improving answer quality, reliability, structure and presentation. Baidu has also integrated AI search more closely with ERNIE Assistant to support interactive, multi-round conversations and more complex tasks. However, Luo said online marketing revenue remained under pressure in the second quarter amid intense competition for user attention from AI chatbots and other new product formats. Baidu has also deliberately held back monetization of AI search while it prioritizes product development and user experience. “Given these dynamics are likely to persist, we expect our advertising business to remain under pressure in the second half,” Luo said. He added that Baidu expects monetization opportunities that fit naturally into AI experiences to emerge as models and product capabilities improve. Apollo Go completed about 1 million fully driverless operational rides in the second quarter, bringing cumulative public rides to more than 23 million as of June. Ride volume was temporarily affected by operational adjustments in some Chinese cities related to regulatory considerations, though Li said operations in affected cities had begun resuming as of August. The company received Hong Kong’s first permits for fully driverless testing in June and began testing on Airport Island in July. Baidu said Apollo Go became the first robotaxi provider globally to conduct fully driverless testing in a right-hand-drive, left-hand-traffic market. In July, Apollo Go began open-road testing in London with Uber and Lyft and launched fully driverless commercial operations in Dubai. It also began open-road testing in Switzerland with PostBus and signed a memorandum of understanding with Kazakhstan’s Turlov Private Holding Ltd. Li said Apollo Go’s fully driverless vehicles had recorded an average of approximately one airbag deployment per 14.4 million kilometers as of the end of June. The company aims to expand fleets and ride volumes, improve safety and operations, advance internationally and bring more cities to unit-economics breakeven. Separately, Baidu said its board approved a plan in July to convert its Hong Kong listing to dual primary status. The company has submitted an application and plans to hold an extraordinary general meeting on Aug. 26. It expects the conversion to take effect this year, subject to shareholder and Hong Kong Stock Exchange approvals. Baidu, Inc, founded in 2000 and headquartered in Beijing, is a Chinese multinational technology company best known for operating one of China's leading internet search engines. The company built its business around online search and related advertising services, providing search, content aggregation and targeted ad placements to consumers and marketers across China. Baidu went public on the NASDAQ in 2005 and has since diversified beyond search into a broader technology and AI-focused portfolio. Core products and services include the Baidu search platform and mobile app, Baidu Maps and Baidu Baike (an online encyclopedia), along with digital content initiatives. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Baidu Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Interested in Pony AI Inc. - Sponsored ADR? Here are five stocks we like better. Revenue surged 69% year over year to $36.2 million in Q2 2026, driven by a 691% increase in robotaxi revenue and an expanded fleet of roughly 2,000 vehicles. Pony AI expects to reach 3,500 vehicles by year-end and operate in more than 20 cities by the end of 2026. Pony AI secured commitments for more than 4,000 vehicles from Uber and other international partners, including over 2,000 robotaxis across five European cities. Its asset-light deployment model is designed to generate upfront vehicle-delivery revenue and recurring revenue-sharing or licensing fees as fleets scale. Losses narrowed relative to revenue growth: net loss fell 14.9% to $45.4 million, while operating margins improved year over year. The company held $1.39 billion in cash and investments at quarter-end and expects partner co-investment to help fund fleet expansion. 5 Reasons to Pony Up for Pony AI Stock—and 1 Reason to Wait Pony AI (NASDAQ:PONY) reported second-quarter 2026 revenue of $36.2 million, up 69% from $21.5 million a year earlier, as growth in its robotaxi business accelerated and its fleet expanded to approximately 2,000 vehicles. Chairman and CEO James Peng said robotaxi revenue rose 691% year over year to a record $12.1 million, while fare-charging revenue increased 849%. Robotruck revenue grew 40% to $13.3 million, and revenue from intelligent solutions rose 4% to $10.8 million, with the lower growth rate attributed to fluctuations in domain-controller deliveries. → AMG’s Alternatives Boom Powers Record Growth “Our robotaxi fleet expanded to 2,000 vehicles, putting us on track to deliver 3,500 vehicles by year-end,” Peng said. The company said it aims to operate in more than 20 cities by the end of 2026 and expects to exceed its prior outlook of robotaxi revenue reaching more than 3.5 times the 2025 level. Pony.ai said it has surpassed 1.5 million registered users in China and has expanded service coverage in Guangzhou and Shenzhen. In Guangzhou, the company added more than 300 square kilometers of operational coverage since the beginning of the year, spanning Haizhu, Tianhe, Huangpu and Panyu districts and serving an area with a population of more than 7 million. → Microsoft's Maia 300 Chip Targets NVIDIA's AI Dominance Peng said the company’s driverless fleet in Shenzhen has navigated high-demand holiday periods, rush-hour traffic and heavy rainstorms. Its network there now includes Bao’an International Airport, Shenzhen Bay Port and the Shekou Cruise Port. The company operates three Gen-7 robotaxi models in daily service: the GAC Aion V, BAIC Arcfox Alpha T5 and Toyota bZ4X. Peng said Pony.ai intends to continue adding vehicles in China’s Tier 1 cities while entering additional domestic markets, including Changsha, Hangzhou and other cities in the Greater Bay Area. → The Metals Company’s Big Bet Now Comes Down to a License Peng said larger fleets in Guangzhou and Shenzhen have reduced rider wait times and supported retention, which in turn has increased daily revenue per vehicle. He added that greater scale has helped the company spread operating costs across more vehicles and improve unit economics. Pony.ai said it has secured commitments for more than 4,000 vehicles from Uber and other overseas partners. Those commitments include more than 2,000 robotaxis across five European cities with Uber, according to management. The company also cited ongoing deployments with Bolt and Stellantis in Luxembourg and said its robotaxi service in Singapore is available to the public through ComfortDelGro’s Zig ride-hailing app. In Croatia, Pony.ai’s commercial service in Zagreb has served as a reference point for overseas partnership discussions, management said. Peng described the company’s joint-deployment model as an asset-light approach in which partners finance fleets and contribute local operating capabilities. Pony.ai provides its Gen-7 vehicles and autonomous-driving technology, while mobility platforms contribute rider demand and local operators manage fleet maintenance. Chief Financial Officer Leo Wang said the model may produce revenue-sharing income or technology-licensing fees over a robotaxi’s operating life. The company currently recognizes upfront vehicle-delivery revenue under the model, he said, and expects recurring revenue-sharing income to grow as operating fleets scale. In response to a question about Uber’s selection of Pony.ai for European expansion, Peng said Uber sought autonomous-driving partners with reliable technology at scale and attractive cost structures. He said Pony.ai’s operating experience in China’s Tier 1 cities and in Zagreb demonstrated its ability to operate in complex urban environments. Chief Technology Officer Tiancheng Lou said PonyWorld 2.0, the company’s AI-powered world-model and development framework, is intended to reduce the engineering effort needed to launch in new cities. The system is designed to identify local driving behaviors, generate targeted solutions and validate models for deployment, reducing reliance on engineers manually reviewing driving scenarios. Lou said the technology helped Pony.ai adapt to driving behavior in Zagreb, where drivers tend not to slow down near blind spots when they have the right of way. He said the company can now enter multiple cities with distinct driving conditions concurrently using fewer engineering resources. On operations, Lou said the company’s robotaxis can autonomously navigate depots, locate charging spaces and self-park. He said Pony.ai needs roughly three people for every 100 robotaxis to support daily operations, compared with the one-driver-per-vehicle structure of traditional taxis. The company also said it is advancing a new L4 autonomous light-truck initiative. Peng said the trucks share technology and operational infrastructure with Pony.ai’s robotaxi operations and customer relationships with its robotruck business. The company has partnered with CATL on vehicle development and said it has secured partnerships with SF Express and China Post Technology. GAAP operating expenses totaled $72.1 million in the second quarter, while non-GAAP operating expenses were $63 million, up 9.6% year over year. Wang said the expense increase was substantially below the company’s revenue growth rate. GAAP loss from operations was $65.7 million, up 7.3% from a year earlier. Non-GAAP loss from operations was $56.7 million, increasing by less than 5% year over year. Net loss narrowed 14.9% to $45.4 million. Operating margin improved to negative 181.5%, from negative 285.6% in the prior-year quarter. Net loss margin improved to negative 125.2%, from negative 248.3% a year earlier. As of June 30, Pony.ai held $1.39 billion in cash and cash equivalents, short-term investments, restricted cash and long-term wealth-management instruments, compared with $1.44 billion at the end of March. Net cash used in operating activities was $44 million in the quarter, while capital expenditures were $32.2 million, primarily for fleet vehicles, autonomous-driving kits and data-center capacity. Wang said the company expects partner co-investment under its joint-deployment model to support fleet expansion while maintaining capital discipline. Pony AI Inc develops and commercializes autonomous driving technologies for passenger mobility, freight transportation and other applications. Its proprietary Virtual Driver platform integrates software, hardware and services, while its PonyWorld world model supports the development and deployment of its autonomous driving systems. The company operates three primary business lines: Robotaxi services, Robotruck services and Intelligent Solutions, which include autonomous driving domain controllers and other technology products and services for automakers and industry customers. Founded in late 2016 in Fremont, California, by Jun “James” Peng and Tiancheng Lou, Pony.ai is headquartered in Guangzhou, China. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Pony AI Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Uber Technologies stock has delivered a strong 90.4% gain over the past five years, yet current valuation checks still suggest the shares lean cheap rather than stretched. With the company leaning into autonomous vehicles and large acquisitions, investors are weighing that track record against what the current price implies. Over five years, Uber Technologies has returned 90.4%, which puts current holders in a solid position but raises the question of how much of that progress is already reflected in the share price. Heavy spending plans on autonomous vehicles and the pending Delivery Hero acquisition can support future cash generation, while execution risks around robotaxis and large scale integration may weigh on how much investors are willing to pay today. Uber screens as undervalued on most metrics, with the stock passing 5 of 6 valuation checks, so the broader set of indicators leans toward the shares being priced below their fundamentals. The issue now is whether Uber Technologies' current price still offers an attractive margin of safety after that five year run and the recent swings in sentiment. Find out why Uber Technologies' -17.0% return over the last year is lagging behind its peers. The P/E multiple suits Uber Technologies because earnings are now a meaningful driver of how the stock is priced. Uber trades on roughly 16.2x earnings, which is below both the broader transportation industry at about 32.6x and the peer group average of 20.1x. On simple comparisons, the stock is not priced as expensively as many listed transport companies. The tailored fair P/E ratio for Uber sits higher at about 27.9x, which is above the current 16.2x level. That gap suggests the market is applying a discount relative to what would be implied by Uber Technologies' size, profitability profile and risk factors. Despite the recent volatility around autonomous vehicle spending plans and the Delivery Hero deal, the earnings multiple still points to a discount compared with those benchmarks. On the P/E multiple, Uber Technologies stock currently appears undervalued relative to both peers and its modelled fair ratio. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where the Uber Technologies valuation puzzle leaves off by spelling out which growth, margin and earnings paths would need to play out for the stock to be worth materially more or materially less than it is today. Each Narrative treats fair value as a specific thesis about Uber Technologies' business that you can revisit over time, and they sit on the stock's Community page for ongoing reference. Community views on Uber Technologies currently split between a reset in profit potential and a more cautious read on the next chapter. Bull case: 27% undervalued Read the full Bull Case to see why Uber Technologies could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Uber Technologies could be overvalued Do you think there's more to the story for Uber Technologies? Head over to our Community to see what others are saying! Uber Technologies still screens as undervalued on its earnings multiple, which points to a market that is discounting its cash generation potential relative to similar transport stocks and its tailored fair P/E ratio. That gap only closes if investors gain more confidence that spending on autonomous vehicles and the Delivery Hero integration can be absorbed without eroding profitability. The key question now is whether that discount reflects an opportunity, or whether it is the market’s way of pricing in the execution and capital allocation risks that sit at the heart of the Uber Technologies story. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UBER. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 8:00 a.m. ET Chief Executive Officer - Dara Khosrowshahi Chief Financial Officer - Balaji Krishnamurthy Head of Investor Relations - Alaxandar Wang Operator: Hello, and welcome to Uber's Q2 2026 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Alax Wang, Head of Investor Relations. You may begin. Alaxandar Wang: Thank you, Sarah. Thank you for joining us today, and welcome to Uber's Second Quarter 2026 Earnings Presentation. On the call today, we have Uber's CEO, Dara Khosrowshahi; and CFO, Balaji Krishnamurthy. During today's call, we will present both GAAP and non-GAAP financial measures. Additional disclosures regarding these non-GAAP measures, including a reconciliation of GAAP to non-GAAP measures, are included in the press release, supplemental slides and our filings with the SEC, each of which is posted to investor.uber.com. Certain statements in this presentation and on this call are forward-looking statements. You should not place undue reliance on forward-looking statements. Actual results may differ materially from these forward-looking statements, and we do not undertake any obligation to update any forward-looking statements we make today, except as required by law. For more information about factors that may cause actual results to differ materially from forward-looking statements, please refer to the press release we issued today as well as risks and uncertainties described in our most recent Form 10-K and in other filings made with the SEC. We published our quarterly earnings press release, prepared remarks and supplemental slides to our Investor Relations website earlier today. We ask you to review those documents if you haven't already. We will open the call to questions following brief opening remarks from Dara. With that, let me hand it over to Dara. Dara Khosrowshahi: Thanks, Alax. So Q2 was another outstanding quarter for Uber with record audience and engagement, driving durable growth, expanding margins and recording cash -- and record cash generation. Gross bookings grew 22% year-on-year to more than $58 billion, above the high end of our guidance and marking our fourth consecutive quarter above 20% growth. Just as importantly, that growth translated into significant operating leverage with non-GAAP EPS growing 35% year-over-year and trailing 12-month free cash flow exceeding $10 billion for the first time in our history. Those results give us the ability to continue investing from a position of strength across our priorities. Our recently announced agreement to acquire Delivery Hero is a great example. The combination is going to expand our reach to nearly 100 markets and extend the proven strategy that has underpinned our growth for years by roughly doubling the number of markets where we can offer the full power of our platform across mobility and delivery. By bringing our technology and Uber One to millions more people, we believe this deal will create significant long-term shareholder value. We also continue to invest behind one of the largest opportunities in Uber's history, autonomous vehicles. Over the past year, the conversation around AVs has shifted from whether the technology can deliver a compelling service to how broadly, reliably and economically it can scale. That distinction matters because we believe the industry structure is becoming clearer. It mirrors what's happening in AI broadly. A few years ago, many expected AI to converge around a single foundation model. Instead, multiple frontier models have emerged alongside a growing open source ecosystem. We believe AVs, which are essentially physical AI, will follow a similar path. Just in the last week, we've seen NVIDIA release its Alpamayo open-weight model and our partners at Wayve received a permit in the U.K., and Zoox received approval to scale its robotaxi. The momentum across our partner base is remarkable. Unlike foundation models, however, AVs are physical, regulated systems that have to be deployed market by market with the variable patterns of ride-hailing. That makes the commercialization layer critical, and that's exactly the opportunity we're building towards. And our ambition is straightforward, to become the world's leading commercialization platform for autonomous vehicles. Taken together, we're executing with discipline today while building the capabilities we believe will define Uber's next decade of growth. With that, operator, let's open up for questions. Operator: Your first question comes from the line of Brian Nowak with Morgan Stanley. Brian Nowak: Maybe, Dara, a double-pronged one on autonomous, one on mobility and delivery. Just you've made a lot of progress with different partnerships, and there's a lot of technological progress happening. But maybe help us understand, if you look ahead 12 months from now, what are sort of the main milestones or progress sign points you're focused on, on your mobility strategy and your delivery strategy in AV just to ensure you're going down the right path? Dara Khosrowshahi: Yes, absolutely, Brian. So in terms of what the milestones we're looking at, the most important milestones are really launches and the number of cities that we are live in, both with vehicle operators and then without vehicle operators. So to remind you, we're live in 7 cities, and we're on track to be live in 15 cities by year-end. We've got a Nuro Lucid launch coming in the Bay. We've got Zoox coming in Vegas. We've got Wayve in London and Tokyo, Baidu also in London and then Pony and Verne in Zagreb and potentially more. So there's a bunch of launches coming up in the balance of the year. And then really, we're looking for more in 2027. So we'll continue to launch markets with the partners that I talked about, but we'll be adding additional partners into the ecosystem as well. We expect to see Rivian in the market, and these are -- this is kind of a full stack kind of a build, which is software and hardware with a very affordable bill of materials. We expect to be in perhaps San Francisco and Miami in 2028 for Rivian. And then in [indiscernible], we expect to be in L.A. and San Francisco in 2027 and then 28 different cities globally by '28 as well. So really, what we're looking for is launches in markets, accelerating our data collect, which is really driving the newer kind of end-to-end models as well and then starting to really commercialize this model. The numbers are small at this point. But for us, what we're looking at is, first of all, the quality of the service. And then second, the utilization of these vehicles. And what we've seen is that launching with us as a partner with kind of the built-in kind of demand that we've got, we can drive very significant utilization per vehicle, often mid- to high 20s, low 30s in terms of trips per vehicle per day, which is quite substantial in terms of the needed monetization as it relates to these vehicles. So it's getting partners in market, quality of service and then obviously, the economics of the service that we're looking at. On the delivery side, we're also partnered with a number of partners, whether it's Serve or Cartken for delivery kind of sidewalk robots. What I am increasingly optimistic about are the potential of drones. So we've got, for example, partnerships with Flytrex. There are a number of partnerships coming up in the drone area. And the promise of drones, while it will take time to get the economics, down to kind of the kind of economics that can be sustainable. With drone delivery -- with AVs, it's a really cool experience. It's safe, et cetera, but AVs, to some extent, are slower than human drivers at this point. We'll see what happens there. Drone delivery can cut the timing of delivery significantly. So already kind of ordering dinner and getting it delivered to your home in 30 minutes is a magical experience. We think in 15 minutes, it's going to be -- 10 to 15 minutes is going to be an even more magical experience. So while we're on the sidewalks now as it relates to our delivery business, we're looking forward to getting in the air with some of the partners out there. Operator: Your next question comes from Eric Sheridan with Goldman Sachs. Eric Sheridan: Two, if I could. On the U.S. mobility acceleration, can you unpack a little bit some of the drivers of that acceleration? And how much you think might be building permanent signal as opposed to elements of the World Cup that might have played a role in that? And then I was struck by the comment that the first-time user momentum was as high as it was. What do you think you're putting in place there that's resulting in that type of first-time user momentum? And again, how should we be thinking about that sustaining going forward? Balaji Krishnamurthy: Thanks, Eric. I'll take the question on U.S. mobility and Dara will take the second one. So -- the World Cup definitely was a benefit, but it was as expected to a large extent. And what I would say is the momentum that we're seeing in the U.S. is consistent with the theme that we have been talking about since the beginning of the year. And it is far broader than any one-off event that we're talking about here. So just as a reminder, what we have said is we expect the U.S. to accelerate through this year. And we highlighted in Q2, both trips and gross bookings accelerated. We continue to hold our expectation for the remainder of the year. And what's driving that is 3 distinct items. The first one is insurance, which we have talked about, is becoming a tailwind this year. We are reinvesting the savings from insurance back into the market. And particularly in California, where there's a significant amount of reinvestment, we are seeing a very clear inflection in growth. And in L.A. and SF, our trip growth, for example, meaningfully outpaced the rest of the country. Then secondly, our product innovation velocity that we've talked about on both premium products and on affordable products, whether it's Reserve, U4B and Black on the premium side or Wait & Save and other products on the other side of the spectrum, we are seeing really good traction there. U4B, in particular, we saw 40% year-on-year growth. Uber Health is growing even faster. So that's the second theme. And then finally, sparse markets, which we've been talking about as a long-term opportunity, that continues to be a very strong driver for growth as well. And just for context, in the U.S., less than 10% of eligible consumers in our sparse markets have used Uber in the past 12 months, whereas in dense markets, that number is over 50%. So we're making really good progress there in improving supply, reliability and investing in marketing to drive awareness and trial. So I think all in, it's broad and sustainable. Dara Khosrowshahi: And then in terms of first-time users, we're obviously very happy about the kind of record first-time users at least over the past couple of years coming into the platform. And the trends are actually -- or the drivers are similar. The ones that I would call out generally are our lower-cost products continue to grow globally, but also in the U.S. as well. Globally, our low-cost products are kind of 2-wheelers and 3-wheelers. In the U.S., it's Wait & Save, which allows consumers to kind of trade off time against price, and Wait & Save is growing very, very quickly. So low cost, it kind of introduces a whole new sector of consumers onto the platform, and then we can sell them up to the mainline as well. That's one. Second is exactly what Balaji talked about, which is sparse markets. We -- the mobility business and the delivery business is growing significantly faster in sparse markets than in dense markets. We're kind of building out inventory in those markets. Margins are actually quite healthy as well. So you get increased growth as well as strong margins as well. And we are a very, very long way from high penetration in those sparse markets, as Balaji pointed out. Third for us is cross-platform. And most of our cross-platform activity is -- has been historically our Rides to Eats, and I'll remind folks that only 20% of our consumers at this point use both Rides and Eats, and that's growing 1.5x faster than single product users as well. So that's a very sustainable advantage that we have as it relates to cross-platform. And as our Eats business is getting bigger, not only is Rides moving consumers to Eats, but then our Eats business is moving consumers on to Rides as well, and that's true both globally and in the U.S. as well. And then last but not least, our new products that we're introducing into the marketplace. So for example, Women Preferred is bringing a lot of women, both drivers and riders into the marketplace. Uber Teens is another new product that's kind of bringing in a whole new demographic and audience into the marketplace. And then, for example, higher-margin product like U4B gives us high margins, but it's also introducing kind of a new enterprise type audience as well. So you put all that together, whether it's low-cost, cross-platform, newer products or sparse markets, that's really what's contributing to both the growth of the business as well as the growth of the audience. Operator: Your next question comes from Doug Anmuth with JPMorgan. Douglas Anmuth: I have two. You highlighted some softness in Brazil mobility trips. Could you just talk about the competitive environment there? And then also if there are any other markets where you need to invest in Moto and low-cost mobility products? And then secondly, there's been a lot in the press recently regarding Uber's relationship with Waymo. Is there anything you can add or clarify there and specifically how you're thinking about those Austin and Atlanta partnerships? Dara Khosrowshahi: Yes. Absolutely, Doug. So in Brazil, we are seeing a competitive environment. It's not -- it's always been competitive as it relates to mobility. We compete against DiDi, for example, locally. And Latin America generally has been quite competitive. What we're seeing that's new and different in Brazil is there is an enormous amount of competition as it relates to the food business. DiDi's introduced DiDi Food. Meituan has gone in there going against iFood, which is the incumbent in Brazil as well. That -- all of them are going after 2-wheeler delivery supply. And that same 2-wheeler delivery supply will switch off between delivering food and also moving people as well. So the cost of securing that supply has gone up pretty significantly. And we're moving incentives that we kind of put on the consumer side. We're moving it to the delivery side to counteract that, if you will. The good news as it relates to Brazil is that we continue to hold our share in Brazil but you just see kind of share move from the mobility side of the business to the delivery side of the business because it's a period of time where there's a lot of investment going there. I think the good news, if you want to call that, is our 2-wheeler business is one of our newer businesses. The margins in that business are quite low. So it's certainly not hitting the bottom line, but it is affecting trip volumes and it's actually competition outside of our space that is affecting those trip volumes. As it relates to Waymo, listen, Waymo is a very, very important partner of ours, and we continue to operate in Austin and Atlanta. We believe we'll continue to operate next year in those marketplaces. It's a terrific product and the on-the-ground partnership continues to be very strong. At the same time, we want to make sure that we're not dependent on one partner. And we're absolutely seeing a plethora of newer players in the AV ecosystem, just like you see in the foundation model space. And while we continue to provide a great service with Waymo in Austin, Atlanta, we'll continue to build our services with our other players as well. We'll be in 15 markets by the end of the year. Next year, it will be many, many more markets than that. And just as a reminder of our scale, AVs are doing kind of hundreds of thousands of trips per week. We're at 300 million kind of trips per week as well. So it's even less than 0.5% of our overall trip volume. You compare that again to the foundation model space, people estimate that 20% of search now has gone to AI, 40% of users are using AI search of one way or the other. So the penetration of kind of physical AV is going to be slower. It's going to some extent, be more deliberate. It's way below where it is at AI. Regulations are a consideration there. And we have time to develop the partnerships with our other set of partners to create a competitive playing field with attractive commercials. Operator: Your next question comes from John Colantuoni with Jefferies. John Colantuoni: Can you talk to the evolving regulatory environment in autonomous vehicles and how you see policy playing into the pace of adoption and geographic expansion? And second, regarding overhead expenses, talk about what has allowed you to temper headcount additions relative to your initial plan and the framework you're using to make decisions about reinvesting these tailwinds versus dropping them to the bottom line? Dara Khosrowshahi: Absolutely. John, as it relates to regulation, listen, we are a highly regulated business. We routinely talk to lawmakers, whether they're governors, mayors, council members who have real concerns about both the effect of AI and AVs with their constituencies. And some of these concerns are real. There are concerns about job loss, there are concerns about safety, there are concerns about congestion. And while AVs have been incredible in the markets in which we've introduced them, there also have been -- they've had their fair share issues, whether it's safe driving through school zones or next to school buses or how they interact with emergency response vehicles or how they react to large power failures where the traffic lights aren't working. These are real issues that have to be discussed. And like, for example, D.C. is talking about this stuff and we can't have AVs blocking the streets of D.C. when there's a Presidential or Vice Presidential motorcade going through. Like these are real issues. And we've got to have the proper dialogue with all the constituencies to make sure that any new law reflects the needs of all these stakeholders. And we see sometimes the results of like trying to go too fast and like some of these AI companies with data centers, they were kind of pushing through, you could argue too quickly with NDAs, et cetera. And there's been a huge public blowback against it. And what we think is you need to have the dialogue, you need to have smart regulation and dialogue with our shareholders so you can actually enable innovation going forward, and we can kind of drive AV regulation in a way that's sustainable that doesn't kind of have the same kind of blowback that you're seeing in AI. So sometimes you got to slow down to drive sustainable regulation. We're very much pro AV, but we want any regulation to kind of address the needs of stakeholders and any model that we have is a model that truly lasts. Balaji Krishnamurthy: Great. I'll take the question on the overhead and headcount. So what I'd start by saying is we have now shown a track record of being disciplined on headcount addition over multiple years. But as we have been going through this year, there are a couple of themes that we have been striking at the company. The first one is the investments we're making in AI, they should result in productivity gains, and that should allow us to be moderating some of the headcount additions. And then the second piece is really focus on organizational effectiveness and how we operate. So I'll take the first one and give you a little bit more color first. On AI, we are very early, but what we are seeing is that we are able to cost efficiently deliver some productivity lifts with developers. We are seeing, at the moment, near 100% adoption with our engineers on AI-based coding tools. And for the measurement that we are looking at right now, we are seeing a doubling in the code output per engineer. So there is a lot more nuance to this, and we are being quite smart internally on how we're measuring this and not getting ahead of our skis. But at a minimum, it has allowed us to moderate the pace with which we are adding headcount there. Then there are other areas where you have very discrete investments in AI. Customer support is a clear area where we should be able to up the quality of our customer support interactions as well as reduce the cost of our effort there. And then on the marketing side as well, we are making some investments here. So there's a broad-based effort that should allow us to moderate the pace of hiring. Then on the organizational effectiveness side, from time to time, we will review how our organizations are structured. And through the quarter, we were able to surgically, in a couple of organizations, cut headcount by about 10% to 20%, and that drives some savings as well, although modest in the grand scheme of things. I think the objective for us here is to really remain disciplined. And then as we -- if and wherever we find some savings that allows us to reinvest some of those savings back into driving our marketplace and delivering value to our customers, whether it's consumers or earners. Operator: Your next question comes from Justin Post with Bank of America. Justin Post: Dara, in the prepared remarks, you talked about $10 billion of investment in AVs. How do you think that flows through to the income statement over time? Any thoughts on margin impact of that? And second, maybe you could comment a little bit on how you think about Lucid's ability to make those vehicle commitments given some recent news in the press. And then Balaji, if you want to comment at all on take rates. I think bookings were up 22% constant currency, revenues up 19%. Just some high-level thoughts on that. Dara Khosrowshahi: I'll let Balaji talk to the investment in AV and margins and then maybe the take rate as well, and I'll talk about Lucid. Balaji Krishnamurthy: Okay. Great. So Justin, just for context, the $10 billion of AV investments we're talking about here, this is investment over a multiyear period. And most of the investments we're talking about, you have seen us announce behind the partners that we've been announcing over the last year or so. When you dig into this, there are 2 distinct kinds of investments we're talking about. The first one is investments in our AV software partners. These typically tend to be equity investments with clear milestones that help us get road map visibility and position us front of the line for commercialization with these partners. And the additional benefit for our partners is that our anchor role helps catalyze external fundraising for those partners as well. And so far, for every dollar that we have invested, our partners have been able to raise an additional $2.50 from other investors. So that's the first piece. The second piece is really focused on using our balance sheet selectively to bootstrap the AV infrastructure on the ground. And this can be in the form of support for fleet ops, for real estate or for the OEMs who need some offtake commitments as we go in and deploy on these partners. We talked about 120,000 vehicle commitments that we are looking to deliver over the next few years, and a lot of that would be sort of the example of what we're talking about here. Now all of this, as Dara has said earlier as well today, this is designed to catalyze the ecosystem. In parallel, we are very, very actively also looking at financializing the ecosystem, and we are working with third-party financial sponsors to look at what sort of vehicles make sense here. So it's not just Uber's balance sheet that's working on this, but we can turbocharge this with that sort of additional support. In terms of the P&L versus cash flow impacts, I would say -- we will give you more visibility into that as we go. The closer we get to deployment and scale out, there will be a P&L impact, and we'll size that for investors clearly as we have historically done. Do you want to touch on Lucid and then I can come back to the other questions? Dara Khosrowshahi: Yes, definitely. As it relates to Lucid, they did announce their latest quarter. Silvio has come on as a new CEO. And listen, he's taking some bold steps to go back to the fundamentals refactoring the cost base of the business, really focusing on the quality of the product. These can be tough kind of actions, but they're necessary, and we think positive actions. And I've talked with Silvio, we remain very close with Lucid and kind of the B2B program that they are building and their program with us as it relates to AV are highly strategic, and it's a big order with kind of guaranteed volume that we know we can monetize as well with a car that's -- a beautiful car that can come in at kind of at the 70,000, 80,000 range. So it's something that we're quite encouraged by. The Nuro and Lucid teams are working together very, very closely and the integration of Nuro's AI into kind of Lucid's driver training on the vehicle in terms of the vehicle weight, in terms of tying into the APIs, all of that is going well, and it's something that we're watching. And then, of course, Lucid is backed by the Public Investment Fund. They are a big investor of ours. They have a terrific Board representative on our Board as well. And the Public Investment Fund is a definition of a long-term fundamental investor that has held Uber for years and years and continues to have confidence in and back Lucid as well. So we think the combination of ourselves, Nuro and then the Public Investment Fund backing Lucid, along with the actions that Silvio is taking are kind of the right formula for them to deliver on the commitments that we have on the books with them. Balaji Krishnamurthy: On the revenue take rate, so again, remember that we have talked about a business model change in the U.K., which is primarily an impact on our mobility business. So if you were to look at our revenue margin for delivery, it's largely stable. So I'll set that aside, and I'll touch on mobility, where you are seeing a nearly 500 basis points decline year-on-year. Of that 500 basis points, about 400 basis points is entirely related to this U.K. business model change, and it's an optical impact. It moves cost from cost of revenue. And other than that, it's really deliberate investments that we have been talking about, largely a function of some investments in our lower-cost offerings, the sort of investments we're talking about for Moto in Brazil. And what I would ask investors to focus on is not necessarily the take rate we're reporting on revenues, but the net sort of take rate that is disclosed in our 10-Q filing that will largely show take rate remaining broadly stable. And then from an operating income standpoint, our mobility operating income margin remains very strong at 7.6% as well. So that's all the risk to it in terms of the take rate movement here. Operator: Your next question comes from Mark Mahaney of Evercore. Mark Stephen Mahaney: I want to ask an AI question and a capital allocation question. There's this line in here about AI making Uber more intuitive for consumers. I absolutely would think that AI is leading to greater personalization across a series of services. And it would show up in kind of better conversion rates, more spend per consumer, et cetera. Dara, is there anything you could kind of quantify there about how much better the Uber process from a consumer perspective can be because of AI? And then Balaji, this comment about steadily returning to a more normalized level of activity in terms of the capital allocation share repurchases. Can you just kind of put a little timing on that? Like is that steadily return over a year? Are we talking years or quarters? Dara Khosrowshahi: Yes, absolutely, Mark. So when we think about AI, there are a number of functions that it can serve. One is just to make kind of the consumer experience better, easier. And one example of that is Cart Builder for us, where you can introduce kind of a shopping cart, whether you take a picture of a dish or scribble down a recipe, the AI actually interacts with you to kind of build out a cart. And the effect there is consumers love it, the ones who use it, but also the size of those carts is often twice the size of kind of non-AI built carts. So that's one where your average order size, you kind of drive consumer delight and you are driving average order size as well. Second for AI is -- and this isn't kind of, call it, foundation model work, but just much larger models can be much smarter about making predictions as it relates to consumer behavior based on a much broader array of signals that they're taking in. You take a bunch of signals from consumers. Now these models can take signals based on history. They can take real-time signals, they can take behaviors across the platform. And we can then show those consumers much more relevant information. So it might be ads that are more highly targeted that can convert better, that help our merchants monetize more effectively. It might be just the sort order for organic results on restaurants so that you find that kind of local gem. It might be deal ranking algorithms that get deals in front of you so that you can save money while you're kind of getting what you want as well or it can be AI suggesting that a particular item that you have in your shopping cart is likely to be out of stock. So maybe you'll pick another item as well. All of these either drive conversion or improve the fundamental experience of the consumer. I will stress that we are very, very, very early in terms of the development of the path. And Mark, kind of a lot of people expect these technologies that are revolutionary and AI is revolutionary to have some giant hit. But the fact is that the way that we operate is we optimize the system quarter after quarter after quarter, year after year after year, and you should expect AI to contribute to average order size, the quality and reliability of our service as well and then putting kind of the right product in front of you at the right time. So like another example is 3/4 of our rides on Uber happen via a personalized destination suggestion. 3/4 of the time, we're actually guessing where you're going to go based on your history, and we're getting it right and don't require any typing whatsoever. That's another small example of what AI can do. And I wouldn't look for like one giant hit from AI. It's going to be thousands of small hits and improvements to our ecosystem that's going to drive, we think, growth for the foreseeable future. Balaji Krishnamurthy: I'll take the question on the buybacks. So just as a reminder, we have generated about just a little bit over $10 billion in free cash flows over the trailing 12 months. And what we've said historically is that we want to be deploying about 50% of our free cash flows towards buybacks. Where we are so far halfway through the year is that we have bought back about $3.5 billion of our stock this year. And we tactically pivoted quite heavily towards M&A in the second quarter. And largely, that was a function of our market purchases of Delivery Hero stock. We deployed about $4 billion of capital in the second quarter to ensure that we were in a place to be able to act fast on an opportunity that existed there. Now that we are through that announcement, we are steadily looking to rebuild our share repurchase levels. So to answer your question, Mark, I don't think this is a year away. We are talking about months, not quarters. Operator: Your next question comes from Nikhil Devnani with Bernstein. Nikhil Devnani: I had a couple of separate ones, please. So first on M&A, just given Delivery Hero, you've done bolt-on deals in the past across the U.S. and other markets. What have the learnings been on integration? What worked well? What were some mistakes to avoid as you look to integrate Delivery Hero, which is a bigger and more complex asset? And then separately, in markets where you have AV products that are competing with Uber and not on the Uber network yet, what have you generally observed about mobility cohort engagement and retention behavior? Balaji Krishnamurthy: Thanks, Nikhil. I'll take the Delivery Hero question, and then Dara will take the next one. So the -- what we have seen historically when we have made these kind of acquisitions, albeit at a much smaller scale historically, is that you need to have a clear integration hypothesis before you even pursue the deal. Where we are with Delivery Hero in particular, is that we have very high confidence on our integration plan. We are looking to primarily migrate onto an existing global tech platform supported by a proven integration playbook, a realistic time line, and we are holding a pretty high bar on a disciplined underwriting of the synergies that we have communicated to the Street. We have already looked at the asset in quite a lot of detail. where we are is we know that we operate a single tech platform for our delivery business, whereas Delivery Hero's business with the exception of Baemin right now is on one stack, but there is a lot of opportunity for that all to be collapsed and migrated onto a modern tech stack like Uber's. Then secondly, from an execution timetable standpoint, assuming we close in the second half of 2027, we'll spend 2028 on planning and development before executing the primary migrations in 2029, and that's an appropriate time line for a transaction of this size. And then finally, what we are talking about on synergies here, they're rooted in areas where we have a very high degree of confidence, moving to a common tech platform, platform overlap infrastructure, duplicative roles and services and then finally, consolidating shared services such as payments and cloud infrastructure. So that's the plan here, and we remain committed to delivering the synergies that we communicated a couple of weeks ago. Dara Khosrowshahi: Yes. And as far as operating trends in some of the more mature AV market, they're really strong and kind of the strength in cohorts and new users shows in our trip growth, specifically, for example, our trip growth in San Francisco, L.A. and Phoenix accelerated in Q2 versus Q1. And our category position in these markets is actually higher today than it was a year ago. And kind of the comparison that I would make is with Google Search. The penetration of search as it relates to AI is way, way, way higher than the penetration of AV has been. Again, AV is a physical good, there's regulation, et cetera, all the reasons that we've talked about previously. But even with a 20% penetration of AI search on Google, Google searches are actually up on a year-on-year basis because AI is increasing the overall market as well. And what you saw with Google was they were later to the market, but the power of their distribution, the power of their brand allowed them to be a significant player and a winner in search. And we think the same is going to be true for us. So as kind of we sit here, the trends in those markets are strong. And I think the way that you've seen these markets kind of develop shows that our distribution, our brand can win on a long-term basis. Balaji Krishnamurthy: I think I'll add that the opportunity we have, especially in the U.S., is far, far broader than the markets where AVs operate today. Only 30% of our U.S. gross bookings and 25% of our profits are coming from the top 20 cities and the long tail of thousands of other cities and suburbs, they will remain a primary growth and profit engine for Uber for many years to come. So we are continuing to invest in both humans and in AVs. And you should expect that the U.S. remains a great market for these teams. Alaxandar Wang: Sarah, we'll take our last question please. Operator: Your last question will come from Ross Sandler with Barclays. Ross Sandler: Dara, the new AV lab, just what are those guys working on that complements what your partners are working on? And then BK, the delivery business has these kind of small acquisitions kind of we're lapping one in Turkey and then we're adding these 2 in the third quarter. It looks like organic growth is picking up. So could you just talk about the organic growth that you're seeing in 2Q and what's implied in 3Q for the delivery? Dara Khosrowshahi: Yes, Ross. So what we're seeing as it relates to the development of AV models and physical AV in particular, is that end-to-end models are replacing the heuristics approach, like a bunch of these companies, including Waymo, including Nuro, et cetera, they have been building AV for years and years, but it was based on heuristics. It was based on if-then kind of logical functions. And that is quickly being replaced by end-to-end models that take in enormous amounts of data and then make decisions as humans do. And what we want to do is position Uber with AV labs to help accelerate the development and the training of these models on an L4 basis efficiently with real kind of data from rideshare-specific scenarios. So we're building out hundreds of cars that are riding in rideshare-specific scenarios with robotaxi-grade kind of sensors, and we're collecting kind of a super set of data that then we can provide to all of our partners. One of the issues as it relates to having different partners in the ecosystem is each partner has to collect the unique data sets to go out and kind of acquire all of the tail data that you need to train on to make sure that your AV driver is safe. We can go out, collect one set of data that's rideshare-specific at very high fidelity with advanced sensors, and we can provide that data to all of our partners so that we bring the benefit of scale to AV development. And we are seeing that development accelerate. We want to be a part of that acceleration and AV labs is kind of what we think is a very, very strong partner and accelerator to the development of the entire AV ecosystem. Balaji Krishnamurthy: Yes. I'll take the M&A question. So just as a reminder, we closed our acquisition in Turkey, Trendyol Go in the back half of June 2025. So we are rolling off of that in Q3. We are lapping that acquisition fully. At the same time, we just closed the second acquisition in Turkey earlier this month, which was the acquisition of Getir. That will have a positive contribution to growth in Q3 and beyond. And we have a smaller acquisition with Careem reconsolidating as well. So there's a couple of puts and takes there. On the whole, it is a headwind to delivery reported growth on a net basis, both for gross bookings and trips because Trendyol Go was a lot larger in size than the 2 acquisitions we're talking about for this quarter. Underneath that, our organic delivery business is accelerating quite nicely. We saw very strong trends in the U.S. We are continuing to see very, very strong trends internationally as well. We gained category position in all of our large markets. And so what we are seeing is an organic acceleration and inorganic handoff from a large acquisition to a small one. But on the whole, what you see should be relatively healthy trends for delivery in the third quarter. Dara Khosrowshahi: Well, thank you, everyone, for joining the call. Thank you to the entire Uber team for another quarter of really, really strong execution and looking forward to all of the innovation in the industry and everything that we're going to build for you. So we'll talk to you next quarter. Thanks. Operator: This concludes today's conference call. Thank you for joining. You may now disconnect. Before you buy stock in Uber Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Uber Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy. Uber (UBER) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

HTZ jumped 39% in a week after Q2 revenue hit $2.4B, up 10% year over year, on pricing power despite operating with a smaller fleet. CAR barely moved while UBER gained 9% on the week, confirming Reddit-fueled retail traders, not sector strength, are driving HTZ higher. Multiple class-action lawsuits, $18.7B in debt, and S&P SmallCap 600 removal all hang over a stock still down 59% year to date. It sounds nuts, but SoFi1 is giving new Active Invest users up to $3,000 in stock for a limited time, and all it takes is a $50 deposit to get started.2 See for yourself (Sponsor) Shares of Hertz Global Holdings (NASDAQ:HTZ) are ripping higher in Tuesday afternoon trading, changing hands around $2.64, a 25% jump from Monday's close of $2.12. The move extends a violent post-earnings bounce, with the stock now up 39% over the past week. The catalyst traces back to Hertz's August 6 Q2 report, which surprised to the upside on nearly every operating line. Revenue landed at $2.396 billion, up 10% year over year, while adjusted EPS of -$0.11 beat consensus handily. Adjusted Corporate EBITDA came in at $81 million, and revenue per unit hit $1,542, above the company's North Star target. CEO Gil West framed the earnings report as validation of the turnaround, saying "This quarter's results reflect the disciplined execution of our strategy and our consistent commercial strength." Revenue grew 10% year over year despite operating with a 1% smaller fleet, a genuine pricing-power tell. The 8-K is on file with the SEC. The rally is happening in spite of a wall of overhangs. Multiple securities class-action complaints allege Hertz made materially false statements about liquidity and the likelihood of a dilutive capital raise between May 7 and June 23, 2026, with a lead-plaintiff deadline of September 22, 2026. A $300 million secured-notes deal announced June 24 triggered the 40%-plus drawdown that anchors those suits. SoFi Active Invest is offering a limited-time promotion. Open an account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock for Active Invest accounts. See for yourself by clicking here now. (Sponsor) Layer on removal from the S&P SmallCap 600, which forced index-fund selling, and analyst fair-value cuts from $3.78 to $2.78. The balance sheet is also stretched, with total debt at $18.7 billion and a stockholders' deficit of $628 million. Year to date, HTZ is still down 59%. It's worth noting that Hertz opened the day flat. Buying pressure built between 9:45 a.m. ET and 10:45 a.m. ET. Most of Hertz' gains came from that period as the stock has traded mostly sideways since the morning. The bounce looks idiosyncratic. Avis Budget Group (NASDAQ:CAR), the closest rental peer, is up 3% today to $142 and essentially flat over the past week. Mobility partner Uber Technologies (NYSE:UBER), which is teaming with Hertz's Oro Mobility unit on an AV launch in the San Francisco Bay Area later this year, has climbed 9% on the week, while Lyft (NASDAQ:LYFT) is up 5%. HTZ is running its own race. Retail is fueling the move. Reddit's r/wallstreetbets sentiment score hit 93 on August 7, with posts titled "Upcoming Hertz 10+ Bagger" and "Full port, life savings in HTZ, I have never felt this alive" drawing hundreds of comments. The warrant lock-up expired August 9, which may be adding to the whipsaw as short positioning gets tested. Looking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open a new Active Invest account, fund it with $50 or more, and you could receive up to $3,000 in complimentary stock. From $0 commission trading3 to fractional shares4 and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(Sponsor) Contact [email protected] for any questions or corrections.