DoorDash Stock Dips After Mixed Q4 Earnings

Q4 Earnings Performance

DoorDash reported earnings per share (EPS) of $0.48 for Q4, missing Wall Street estimates of $0.60. Revenue for the quarter totaled $3.96 billion, slightly below the consensus forecast of $3.99 billion. Despite the revenue miss, year-over-year growth remained robust at 28%, reflecting consistent expansion in its core operations and services. The results highlighted challenges in meeting heightened market expectations, particularly as the company navigates macroeconomic pressures and operational cost adjustments.

Key Operational Metrics

Operational performance showed strength in key areas. Total orders surged by 32% year-over-year, reaching 903 million for the quarter, exceeding analyst expectations of 888 million. Marketplace Gross Order Value (GOV), which represents the total transaction value processed through DoorDash's platform, came in at $29.7 billion, surpassing the anticipated $29.1 billion. This growth was driven by higher order volumes, increased customer retention, and a notable rise in transaction activity within the restaurant category. These metrics indicate continued customer engagement and platform scalability.

Future Guidance and Market Reaction

DoorDash provided Q1 2026 guidance for adjusted EBITDA in the range of $675 million to $775 million, below analysts' consensus estimate of $800 million. Similarly, the company projected Marketplace GOV to range between $31.0 billion and $31.8 billion, aligning closely with expectations of $30.75 billion. Despite operational growth, the market reacted negatively to the earnings miss and lower-than-expected guidance. Following the announcement, DoorDash's stock price dropped by 8%, reflecting investor concerns over the company's ability to sustain its growth trajectory while managing profitability challenges.