Instacart (NASDAQ:CART) reported third quarter 2025 results that surpassed Wall Street estimates for both revenue and earnings per share, but cautious guidance for the holiday quarter weighed on its shares on Monday morning.
The grocery technology company posted Q3 revenue of $939 million, slightly above analyst projections of $934.1 million, representing a 10.2% increase from the same period last year.
Earnings per share came in at $0.51, exceeding the consensus estimate of $0.50.
During the quarter, Instacart processed 83.4 million orders, up 14% year-over-year, generating gross transaction volume (GTV) of $9.17 billion, a 10% increase from Q3 of 2024.
Transaction revenue grew 10% to $670 million, while advertising and other revenue also rose 10% to $269 million.
However, Instacart noted that average order value declined 4% year-over-year, driven by restaurant orders and a reduction in basket minimums for Instacart+ members to qualify for waived delivery fees.
Analysts at Jefferies, who have a ‘Hold’ rating and $43 price target on Instacart, highlighted the company’s operational execution during Q3.
“CART sustained impressive GTV/Order growth and provided encouraging guidance despite lapping the first full quarter of the Uber Eats partnership, which should help ease concerns about a potential slowdown,” they wrote.
The firm added that advertising penetration remained largely flat year-over-year, consistent with company guidance, and described the upside in EBITDA as a result of faster top-line growth and lower-than-expected sales and marketing expenses.
Wedbush took a more cautious view, describing the results as “healthy” but noting its cautious guidance for the fourth quarter.
Instacart guided Q4 GTV of $9.5 billion to $9.6 billion, representing 9.3% to 11% year-over-year growth, and adjusted EBITDA of $285 million to $295 million.
Wedbush’s analysts maintained their ‘Underperform’ rating and have a $40 price target on Instacart.
“In our view, Instacart is at risk of losing incremental market share to other leading intermediaries and grocers that can leverage their scale and success in adjacent categories to capture demand for online grocery and convenience,” they wrote.
“While the near-term financial impact is likely limited, we are increasingly cautious on management’s ability to achieve its longer-term targets as competitive pressures build.”