DoorDash Q4 EPS Misses, 38% Revenue Growth; Analysts Adjust Targets
DoorDash reported Q4 EPS of $0.48 versus $0.60 expected and revenue of $3.96B, up 38% year-over-year but slightly below the $3.99B consensus. Guggenheim lowered its price target to $255 citing sector multiple contraction, while BofA raised its objective to $272 based on efficiency gains and accelerating Deliveroo GOV.
1. Q4 Financial Results
DoorDash posted Q4 EPS of $0.48, missing consensus of $0.60, while revenue reached $3.96B — a 38% increase from a year earlier but shy of the $3.99B expected. Growth was driven by core marketplace volume gains, though margins remained under pressure due to elevated investment spending.
2. Share Price Fluctuations
Shares plunged initially after the release, rallied by double-digit percentages the following morning and then declined throughout the trading session as investors parsed mixed topline results and outlook commentary.
3. Analyst Perspectives and Target Revisions
Guggenheim cut its price target to $255 from $275, attributing the change to broader tech sector multiple contraction and citing strong U.S. restaurant growth, with Grocery & Retail and International segments expected to breakeven economically by second-half 2026. BofA raised its target to $272, viewing the report as a margin clearing event, emphasizing efficiency improvements in new business lines and accelerating gross order volume from the Deliveroo acquisition, and forecasting significantly higher EBITDA in the second half of 2026.