New CEO Chris Rogers delivers upbeat outlook as company deepens retail partnerships and expands innovation initiatives
Instacart’s (CART) shares jumped more than 8% in premarket trading Monday after the grocery delivery giant reported third-quarter earnings that beat Wall Street expectations and issued optimistic guidance under new CEO Chris Rogers. The company posted adjusted earnings per share of 51 cents, slightly above LSEG’s 49-cent estimate, with revenue climbing 10% year-over-year to $939 million — also surpassing forecasts.
Gross transaction value (GTV), a key measure of sales activity, rose 10% to $9.17 billion, topping analysts’ $9.11 billion projection. Orders increased 14% to 83.4 million, outpacing the 83 million expected by StreetAccount, though average order volume slipped 4% due to smaller restaurant and discounted Instacart+ transactions. Net income reached $144 million, or 51 cents per share, compared with $118 million, or 42 cents, in the prior year.
In his first letter to shareholders, Rogers positioned Instacart as a “clear leader” in online grocery delivery and highlighted strategic investments in AI innovation, retailer relationships, and advertising expansion. The company recently unveiled a suite of artificial intelligence tools for grocers, including a shopping assistant that personalizes recommendations for customers.
Looking ahead, Instacart expects fourth-quarter GTV between $9.45 billion and $9.6 billion — representing 9% to 11% annual growth and exceeding mid-range analyst expectations. Projected EBITDA is set between $285 million and $295 million. While management noted headwinds from the ongoing government shutdown affecting the Supplemental Nutrition Assistance Program (SNAP), it emphasized robust October performance and rising enterprise partnerships.
Instacart also expanded its share buyback program by $1.5 billion, including an accelerated $250 million repurchase, underscoring investor confidence in its growth trajectory and profitability momentum under Rogers’ leadership.
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