Instacart (CART) Q3 2025 Earnings

Instacart (CART) has reported a strong third-quarter performance, exceeding expectations and issuing an optimistic forecast under the leadership of its new CEO, Chris Rogers. While the market reaction was muted with the stock remaining relatively flat, the underlying financials paint a picture of a company executing its growth strategy effectively amidst increasing competition.

Here’s a breakdown of the key figures versus expectations:

• Earnings per share: Adjusted EPS of 51 cents, surpassing the expected 49 cents.
• Revenue: $939 million, exceeding the consensus estimate of $934 million.

Revenue experienced a healthy 10% year-over-year increase from $852 million. Gross transaction value (GTV), a crucial metric reflecting the total value of goods sold through the platform, also rose by 10% to $9.17 billion, exceeding the FactSet estimate of $9.11 billion. This growth in GTV suggests continued user engagement and platform adoption.

CEO Chris Rogers, in his inaugural shareholder letter, emphasized the company’s strategic focus on enhancing affordability for consumers and bolstering its enterprise solutions. He specifically highlighted the enterprise platform as a significantly “underappreciated part” of Instacart’s overall business. Rogers believes that by focusing on technological innovation, Instacart can continue to carve out a niche in a competitive market.

“We’re deepening customer and retailer relationships, expanding our ads ecosystem, and launching innovative AI-powered tools across all aspects of our business — all while driving profitable growth,” Rogers stated, underscoring the company’s commitment to technological advancement.

Looking ahead to the current quarter, Instacart anticipates GTV to fall between $9.45 billion and $9.6 billion, which represents a 9% to 11% year-over-year expansion. The midpoint of this range surpasses the FactSet consensus of $9.48 billion. The company also projects EBITDA in the range of $285 million to $295 million, indicating continued profitability.

Instacart attributed its positive outlook to a strong performance in October and the increasing traction of its enterprise partnerships. However, the company also acknowledged potential headwinds associated with the Supplemental Nutrition Assistance Program (SNAP) as ongoing government discussions continue to introduce uncertainty. This prudent outlook balances optimism with the potential macroeconomic challenges.

The total number of orders placed during the quarter rose by 14% year-over-year to 83.4 million, exceeding the StreetAccount forecast of 83 million. However, the average order volume experienced a slight decline of 4%, influenced by an increase in restaurant orders and the offering of waived delivery fees for Instacart+ members on lower-basket orders. The company actively manages its pricing and subscription models to optimize order volume and customer retention.

Instacart’s biggest challenge remains increasingly competitive landscape, where companies like Amazon and Doordash pose significant competition. Amazon’s launch of same-day fresh food delivery has intensified the battle for market share. Doordash’s expanded partnership with Kroger further highlights the growing consolidation and competition within the grocery delivery space.

Net income for the quarter increased to $144 million, or 51 cents per share, compared to $118 million, or 42 cents per share, in the corresponding period last year. This increase in net income demonstrates the company’s ability to translate top-line growth into bottom-line profitability.

Instacart is strategically deploying artificial intelligence (AI) tools to enhance its offerings for both grocers and shoppers, aiming to boost engagement and increase the effectiveness of its advertising platform. Earlier this month, the company introduced a new suite of AI-powered solutions for grocers, including an intelligent shopping assistant designed to provide personalized product recommendations. This investment in AI underscores Instacart’s commitment to leveraging technology to improve the shopping experience and drive revenue growth.

Furthermore, Instacart’s board authorized an increase of $1.5 billion to its existing share buyback program, signaling its commitment to returning capital to shareholders. As part of this plan, Instacart intends to execute an accelerated share repurchase program valued at $250 million. This financial maneuver reflects confidence in the long-term value of the company.