Instacart Beats Q3 Expectations But Shares Drop 7% on Muted Outlook

Instacart (NASDAQ:CART) delivered better-than-expected third-quarter results, yet its shares dropped nearly 7% in pre-market today as investors reacted to cautious fourth-quarter guidance.

The grocery delivery platform reported adjusted earnings per share of $0.42, nearly doubling the consensus estimate of $0.22. Revenue climbed 12% year-over-year to $852 million, slightly exceeding the $843.6 million forecast. Gross transaction value (GTV) also saw an 11% increase, reaching $8.3 billion, driven by a 10% growth in orders, which totaled 72.9 million for the quarter. Adjusted EBITDA surged 39% to $227 million, representing 27% of total revenue.

Despite strong third-quarter performance, Instacart projected more modest growth for the fourth quarter. GTV was expected to land between $8.5 billion and $8.65 billion, reflecting year-over-year growth of 8% to 10%. Adjusted EBITDA guidance was set between $230 million and $240 million, signaling steady but slower growth compared to prior quarters.