Uber’s $20 Billion Buyback Plan Underscores Confidence Amid Record Q2 Earnings

Uber Technologies Inc. (UBER:US) has doubled down on shareholder returns, authorizing a massive $20 billion stock buyback program after delivering a stellar second quarter of 2025. The move, nearly three times larger than its prior $7 billion authorization, signals growing confidence in the company’s cash-generating ability and long-term growth prospects.

Strong Quarter Bolsters Buyback Decision

Uber’s latest earnings report provided the financial foundation for its capital return strategy. Revenue surged 18% year over year to $12.7 billion, powered by strong performance across both Mobility and Delivery. Trips climbed 18% to $3.3 billion, while gross bookings expanded 17% to $46.8 billion.

Profitability reached new highs, with net income of $1.4 billion and adjusted EBITDA of $2.1 billion, a 35% increase from a year ago. Operating cash flow came in at $2.6 billion, generating $2.5 billion in free cash flow which will help fund the repurchase plan without constraining growth initiatives.

“Our platform strategy is working, with record audience, frequency, and profitability,” said CEO Dara Khosrowshahi. “But we’re still only beginning to unlock the platform’s full potential.”

Balancing Shareholder Returns with Innovation

The buyback is set to reduce share count and lift earnings per share, but Uber is also investing in autonomous vehicle technology through partnerships with 20 global players including Waymo and Baidu. These collaborations allow Uber to lower R&D costs while moving faster toward deployment.

Meanwhile, its subscription program Uber One expanded 60% year over year to 36 million members, now accounting for more than a third of bookings.

Financial Strength and Market Position

Uber ended the quarter with $7.4 billion in unrestricted cash and short-term investments, providing ample liquidity to pursue both buybacks and strategic growth. Analysts estimate the new authorization could reduce the share count by up to 5% over the next two years, potentially boosting annual EPS by 8 to 10 percent.

Valuation remains attractive relative to peers. With a forward P/E ratio in the low teens, Uber trades at a discount compared to companies like DoorDash, suggesting room for multiple expansion as earnings scale further.

Outlook: Continued Momentum Ahead

Looking ahead to Q3, Uber expects gross bookings of $48.25 to $49.75 billion, representing 17 to 21% year over year growth, and adjusted EBITDA of $2.19 to $2.29 billion, marking up to 36% growth. These figures incorporate contributions from the recently closed Trendyol Go acquisition, which should further strengthen the Delivery segment.

Despite macroeconomic uncertainties and regulatory hurdles in the autonomous vehicle space, Uber’s combination of robust free cash flow, disciplined capital allocation, and innovation investments positions it as one of the most compelling growth stories in the on-demand economy.

Investor Takeaway

Uber’s record earnings and unprecedented buyback authorization highlight a company entering a new phase, balancing immediate shareholder returns with transformative bets on the future of mobility. If execution on autonomous deployment and subscription-driven growth stays on track, Uber could deliver both near-term financial upside and long-term structural advantages in the global transportation market.