Instacart reported Q3 2025 earnings that exceeded expectations, delivering earnings per share of $0.51 versus the consensus of $0.50 and revenue of $939 million against the $934.4 million forecast.
The $0.01 EPS beat was driven by disciplined cost management and an improved operating leverage that offset a modest increase in cost of revenue. Operating income rose to $278 million from $260 million in the prior quarter, reflecting tighter expense control and a favorable mix of higher‑margin enterprise and advertising revenue.
Revenue growth of $5.6 million, or 0.6 %, was largely powered by a 10 % year‑over‑year increase in advertising and other revenue, which reached $269 million, and a 3 % rise in core marketplace sales. The company also reported a 10 % year‑over‑year increase in gross transaction value, supporting the revenue lift.
Looking ahead, Instacart guided for Q4 2025 GTV of $9.45 billion to $9.60 billion and adjusted EBITDA of $285 million to $295 million, a slight upward revision from the prior guidance of $280 million to $290 million. The guidance signals management’s confidence in sustained demand during the holiday season while acknowledging potential headwinds from EBT SNAP funding scenarios.
Segment analysis shows that advertising and other revenue contributed the largest share of the earnings beat, while enterprise technology and omnichannel integration continue to expand. Gross profit as a percentage of GTV fell to 7.5 % from 7.7 % year‑over‑year, reflecting higher cost of revenue, but adjusted operating expenses as a percentage of GTV declined, indicating improved operating leverage.
CEO Chris Rogers emphasized the company’s focus on AI‑driven personalization, stating, “Built for the complexity of grocery and powered by our unique insights, Instacart’s AI solutions deliver more personalized, connected, and efficient shopping experiences—online and in‑stores.” CFO Emily Maher highlighted financial discipline, noting, “We continue to demonstrate strong financial discipline and operating leverage.” The company also announced a $1.5 billion increase to its share repurchase program, underscoring confidence in its financial health.
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