What Are Uber Stock Investors Overlooking

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Revenue at Uber Technologies (UBER) grew 9.6% from a year earlier in the September 2026 quarter, marking its fourth consecutive quarter of slowing growth. Uber stock trades at 40.3 times earnings, compared with 21.8 for the S&P 500, and holders paying that much need the business to keep growing. That multiple rests on reported net income of $3.47 billion, about half of Uber's $7.03 billion operating income, and the stock's free cash flow yield is 7.5%. Management still reported gross bookings growth above 20% for the quarter, but revenue expanded at less than half that pace. So where is Uber falling short? One weak spot behind the strong bookings figure is a driver shortage that kept ride-hailing below management's own expectations.

Uber's Ride-Hailing Business Is Short Of Drivers

On the November 4, 2026, call, management said ride-hailing came in below its expectations because driver supply did not keep pace with strong demand in several international markets. The busy months from September to December add seasonal strain on supply, management said, and in markets such as Brazil, both rides and deliveries depend on drivers on two-wheelers.

Uber is shifting money from riders to drivers to fix the driver shortage. Management said the company is cutting rider incentives and using those dollars to fund driver incentives, which sometimes means higher prices for riders, and that it will make trade-offs against profitability to do so.

Delivery is in better shape, reporting a 23% increase in gross bookings from a year earlier. On November 5, Amazon also named Uber Eats its restaurant delivery partner for U.S. Prime members, with a $0 delivery fee on orders of $25 or more. Even there, management said ensuring courier growth keeps up with demand is its biggest challenge right now.

How Far Has Uber's Revenue Growth Fallen?

Uber's revenue grew 20.4% year over year in the September 2025 quarter, and the growth rate has dropped in every quarter since. Uber added $6.9 billion of revenue over the twelve months to September 2026. This is less than the $7.6 billion added in the prior twelve-month period, even though the company started from a larger base.

Uber stock has already fallen 26.0% over the year to November 6, 2026, while the S&P 500 returned 9.8%. The stock now trades at 2.5 times sales, lower than at most quarter ends since mid-2019. While the earnings multiple is high, the price likely assumes some of the slowdown already.

What Is Still Going Right For Uber?

Uber's operating profits are holding up while growth slows. Its operating margin over the twelve months to September 2026 reached 12.4%, the highest of any quarter end in data going back to the end of 2018. Free cash flow over the same twelve months rose to $10.4 billion, up from $8.66 billion a year earlier. Management also said driver availability showed encouraging improvement in October, after the quarter ended.

A holder has reason for concern, not alarm. Revenue growth has slowed for four quarters, and Uber is paying drivers more to fix a supply problem management named itself, but operating margin and free cash flow are at their best on a twelve-month basis. Revenue growth for the December quarter, which Uber is expected to report in February 2027, is the number to watch.

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