Feb 12 (Reuters) - Instacart (CART.O) forecast current-quarter gross transaction value and core profit above expectations and beat fourth-quarter estimates on Thursday, helped by strong demand for essentials on its online delivery platform and rising advertising revenue.
The company, formally known as Maplebear, logged strong order growth as inflation-weary consumers sought cheaper produce, dairy and pantry staples while leaning on the convenience of rapid delivery options. The strategy has helped Instacart retain budget-conscious shoppers looking to stretch their spending.
The delivery firm’s advertising arm also enjoyed growth, closing the year with about 9,000 active brands, up 2,000 from a year earlier, helping push the segment’s revenue above $1 billion in 2025.
For the current quarter, Instacart expects GTV - a key metric that shows the value of products sold based on prices shown on Instacart - between $10.13 billion and $10.28 billion, topping analysts’ average estimate of $9.95 billion according to LSEG data. The forecast implies 11% to 13% year-on-year growth.
It sees adjusted earnings before tax, depreciation, and amortization for the current quarter between $280 million and $290 million, compared with analysts’ expectations of $279.5 million.
For the quarter ended December 31, GTV rose 14% to $9.85 billion, beating estimates of $9.5 billion. Adjusted core profit was $303 million, above estimates of $292.2 million.
Advertising and other revenue increased 10% to $294 million, in line with year-ago growth. Orders climbed 16%, outpacing the 11% growth a year earlier
The company, which launched an app on OpenAI’s ChatGPT in December, is nevertheless bracing for tougher competition. Amazon is planning a delivery service targeting below-30-minute drop-offs, and Kroger announced an expansion of its partnership with Uber Eats in January, both of which could chip away at Instacart’s market share.

- Instacart reported strong fourth-quarter results, with gross transaction value (GTV) rising 14% to $9.85 billion and adjusted core profit surpassing expectations at $303 million.  
- The company forecasts current-quarter GTV between $10.13 billion and $10.28 billion, indicating expected growth of 11% to 13% year-on-year, while adjusted earnings are projected at $280 million to $290 million.  
- Despite strong performance, Instacart faces increased competition from Amazon and Kroger, which could challenge its market position.

Reuters

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Instacart forecasts strong quarter driven by essentials demand, advertisement business