Instacart (CART) delivers another strong quarter with rising orders, expanding AI tools, and a massive share repurchase plan.
Instacart reported stronger-than-expected third-quarter earnings, highlighting steady growth in its grocery delivery business and continued investments in artificial intelligence and enterprise partnerships. Despite a competitive landscape, the company showed solid profitability and boosted investor confidence with an expanded share buyback program.
Key Points
- Earnings per share reached 51 cents, topping expectations.
- Revenue rose 10% to $939 million as orders increased 14% year over year.
- The company expanded its $1.5 billion share repurchase plan and announced a new $250 million accelerated buyback.
Instacart Beats Expectations with Solid Revenue and Profit
Instacart, the grocery delivery and technology platform, exceeded Wall Street’s third-quarter forecasts with earnings of 51 cents per share, slightly above analyst estimates. Revenue grew 10% from the prior year to $939 million, driven by strong demand for online grocery shopping and increased order frequency.
Gross transaction value (GTV) reached $9.17 billion, up 10% year over year, as total orders rose 14% to 83.4 million. Although average order value dipped 4% due to lower basket minimums and more restaurant orders, unit economics remained healthy. Advertising and other revenue climbed to $269 million, supported by the company’s growing Carrot Ads platform and retailer partnerships.
CEO Chris Rogers emphasized that Instacart is focused on deepening relationships with both customers and retailers while driving profitable growth. “We’re expanding our ads ecosystem and launching innovative AI-powered tools across all aspects of our business,” Rogers told shareholders.
How Is Instacart Using AI to Power Its Platform?
Artificial intelligence has become central to Instacart’s strategy. The company recently launched AI solutions for grocers, including a shopping assistant that recommends products based on customer behavior. These tools aim to improve the shopping experience, enhance retailer operations, and create additional revenue streams through smarter advertising.
Rogers described Instacart’s enterprise solutions as one of the company’s “most underappreciated” growth drivers. By embedding its technology directly into grocery partners’ systems, Instacart enables retailers to modernize operations while strengthening long-term partnerships. This AI-driven strategy supports both efficiency and innovation across the platform.
Is Instacart’s Stock a Buy After Strong Earnings?
While the grocery delivery market remains highly competitive—with rivals like DoorDash (DASH) and Amazon (AMZN) expanding their services—Instacart’s latest results show resilience. Profitability improved, with adjusted EBITDA climbing 22% to $278 million and operating margins rising to 17.7%. Free cash flow also surged to $272 million, or a 29% margin, underscoring strong cash generation.
The company reinforced investor confidence by authorizing a $1.5 billion expansion to its share repurchase plan, signaling management’s belief in long-term value creation. For the fourth quarter, Instacart expects GTV between $9.45 billion and $9.6 billion, representing up to 11% year-over-year growth.
What It Means for Investors
Instacart’s latest earnings reflect a company balancing innovation with profitability. The firm’s focus on AI development, enterprise solutions, and strong cash flow gives it multiple paths to growth even as competition intensifies.
For investors learning the basics of investing or looking to analyze stocks, Instacart stands out as a case study in adapting technology to a traditional industry. The company’s strong balance sheet, expanding partnerships, and growing ad ecosystem suggest it remains among the companies that are good to invest in for those seeking steady, tech-enabled growth in the consumer sector.
Conclusion
Instacart’s third-quarter results underline its leadership in online grocery delivery and its commitment to innovation through AI and enterprise expansion. While market competition remains a challenge, the company’s solid profitability, strong cash generation, and shareholder-friendly initiatives position it as one of the best company investments to watch heading into 2026.
FAQs
How did Instacart perform in the third quarter?
Instacart reported revenue of $939 million and earnings of 51 cents per share, both ahead of analyst estimates.
What are Instacart’s main growth drivers?
Growth is fueled by AI-powered enterprise solutions, a strong advertising business, and expanding retailer partnerships.
Is Instacart profitable?
Yes. The company achieved adjusted EBITDA of $278 million and a 29% free cash flow margin, showing strong operational efficiency.
What is Instacart doing with its share repurchase plan?
Instacart expanded its program by $1.5 billion and added a $250 million accelerated buyback, reflecting confidence in its valuation.
Is Instacart a good stock to buy?
For long-term investors, Instacart offers exposure to both e-commerce and AI growth, making it one of the best stocks to buy in the grocery technology space.
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