Maplebear Inc. CART, doing business as Instacart, reported mixed third-quarter 2026 results, with revenues surpassing the Zacks Consensus Estimate, while earnings missed the same. The results came alongside the announcement of a definitive agreement under which DoorDash, Inc. DASH will acquire Instacart in a transaction valued at approximately $17 billion.
CART reported earnings of 60 cents per share, lagging the consensus estimate of 64 cents. However, the bottom line increased 17.6% from 51 cents in the year-ago quarter. Revenues rose 16.6% to $1,095 million, beating the consensus mark of $1,073 million. Growth in transaction and advertising revenues supported the top line, while higher costs pressured margins. Gross transaction value (GTV) increased 14.8% year over year to $10,528 million.
CART's Transaction Revenues Rise 14% Y/Y
Transaction revenues reached $764 million, improving 14% year over year. The segment contributed approximately 69.8% to total revenues and represented 7.3% of GTV.
Advertising and other revenues climbed 23% year over year to $331 million, representing approximately 30.2% of total revenues. The segment accounted for 3.1% of GTV, reflecting continued growth in Instacart's advertising business.
Instacart Sees Higher Orders and Customer Engagement
Total orders increased 10% year over year to 91.4 million from 83.4 million in the year-ago quarter. The growth reflected solid consumer demand and deeper customer engagement across the company's grocery platform.
Instacart continues to expand its position as a grocery technology provider through its Marketplace, Enterprise platform and advertising ecosystem. The company partners with more than 2,200 retail banners representing nearly 100,000 stores.
Management highlighted the opportunity to transform grocery commerce through an integrated platform encompassing e-commerce, fulfillment, in-store technology, retail media and artificial intelligence solutions.
Maplebear Inc. Price, Consensus and EPS Surprise
Maplebear Inc. price-consensus-eps-surprise-chart | Maplebear Inc. Quote
CART's Operating Expenses Increase Y/Y
Cost of revenues increased 25.1% year over year to $309 million from $247 million. Gross profit rose 13.6% to $786 million from $692 million. However, the gross margin contracted 200 basis points to 72%.
Total operating expenses jumped 16.6% year over year to $612 million. Research and development expenses climbed 14.8% to $194 million, while sales and marketing expenses increased 17.5% to $242 million.
General and administrative expenses rose 21.8% year over year to $106 million. Meanwhile, operations and support expenses increased 12.9% to $70 million.
Instacart's Adjusted EBITDA Margin Expands
Operating income advanced 4.8% year over year to $174 million from $166 million. However, the operating margin contracted to approximately 15.9% from 17.7%, reflecting expense growth that outpaced revenue growth.
Adjusted EBITDA rose 23% year over year to $342 million from $278 million. Adjusted EBITDA margin expanded to 31% from 30%.
CART Generates Strong Operating Cash Flow
Net cash provided by operating activities increased 12.9% year over year to $324 million from $287 million. Free cash flow improved 12.9% to $307 million from $272 million.
Instacart ended the quarter with $830 million in cash and cash equivalents compared with $637 million at the end of 2025. Short-term marketable securities stood at $97 million, while long-term marketable securities totaled $8 million. The company repurchased approximately $230 million worth of shares during the quarter.
Instacart Suspends Guidance Amid DoorDash Acquisition
Instacart announced a definitive agreement to be acquired by DoorDash in a cash-and-stock transaction valued at approximately $17 billion. The transaction values Instacart at $65 per share, representing a 26% premium to its Oct. 22, 2026 closing price.
The consideration will comprise at least 75% cash, with DoorDash stock accounting for no more than 25% of the aggregate transaction value. The acquisition is expected to close in late 2027 or the first half of 2028, subject to shareholder approval, regulatory clearances and other customary conditions.
Shares of this Zacks Rank #3 (Hold) company have risen 25.5% over the past three months against the industry’s decline of 15.7%.
Stocks Looking Red Hot
Dollar General Corporation DG, a discount retailer, currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Dollar General’s current fiscal-year sales and EPS implies growth of 4.3% and 15.9%, respectively, from the year-ago figures. DG delivered a trailing four-quarter earnings surprise of 19.1%, on average.
Target Corporation TGT, which operates as a general merchandise retailer, currently carries a Zacks Rank #2. TGT delivered a trailing four-quarter earnings surprise of 10.5%, on average.
The Zacks Consensus Estimate for Target’s current fiscal-year sales and EPS implies growth of 5.1% and 38.8%, respectively, from the year-ago figures.
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