DoorDash delivered stronger-than-expected third-quarter 2026 earnings and announced a definitive agreement to acquire grocery delivery platform Instacart for approximately $17 billion in cash and stock.
The DoorDash Instacart acquisition announcement came alongside solid financial results from both companies, highlighting continued growth in the online delivery industry.
Following the news, DoorDash shares gained approximately 6.5%, reflecting a positive initial investor reaction to the earnings report and proposed takeover.
DoorDash Q3 Earnings Beat Wall Street Expectations
DoorDash reported diluted earnings per share (EPS) of $1.06 for the third quarter, comfortably exceeding analysts’ consensus estimate of $0.82. The result represented a positive earnings surprise of $0.24 per share.
Meanwhile, quarterly revenue reached approximately $4.62 billion, surpassing Wall Street expectations of $4.56 billion.
The company’s performance demonstrated continued demand for its delivery services, supported by expanding operations and higher transaction volumes.
Furthermore, the earnings beat strengthened investor confidence as DoorDash unveiled one of the largest acquisition agreements in the online delivery sector.
DoorDash Announces $17 Billion Instacart Acquisition
Alongside its earnings release, DoorDash confirmed plans to acquire Instacart in a transaction valued at approximately $17 billion.
The proposed deal will combine cash and DoorDash shares, creating an opportunity for the company to expand its presence in grocery delivery and digital commerce.
Under the agreement, Instacart shareholders will receive consideration valued at $65 per share, with at least 75% of the overall transaction funded in cash.
However, the acquisition remains subject to shareholder and regulatory approvals, meaning the transaction has not yet been completed.
If finalized, the combination could strengthen DoorDash’s position in the competitive online delivery market while broadening its relationships with retailers and consumers.
Instacart Reports Strong Third-Quarter Revenue Growth
Instacart also delivered encouraging financial results, reporting gross transaction value (GTV) of $10.53 billion during the third quarter.
The figure represented a 15% increase compared with the same period last year, reflecting continued growth in customer spending across its platform.
Additionally, total quarterly revenue climbed 17% year over year to approximately $1.10 billion.
Instacart processed 91.4 million orders during the quarter, marking a 10% annual increase.
These figures demonstrate sustained consumer demand for online grocery shopping and delivery services.
Instacart CEO Chris Rogers described the period as the company’s strongest quarter since becoming publicly traded, highlighting improving customer engagement, revenue growth, and profitability.
Advertising and Transaction Revenue Drive Instacart Growth
Instacart’s financial performance benefited from expansion across its main revenue streams.
Transaction revenue increased 14% year over year to $764 million, supported by higher order volumes and continued platform activity.
Meanwhile, advertising and other revenue rose 23% to $331 million, reflecting the growing importance of Instacart’s advertising business.
The strong advertising performance contributed to overall revenue growth and demonstrated the company’s ability to generate additional income beyond traditional delivery transactions.
Moreover, the combination of transaction fees and advertising revenue provides Instacart with multiple opportunities to expand its business.
Instacart Profitability and Cash Flow Improve
Instacart also reported positive developments in profitability and cash generation.
GAAP net income reached $147 million, representing a 2% increase compared with the previous year.
At the same time, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 23% to $342 million.
Operating cash flow increased 13% year over year to $324 million, while free cash flow climbed by the same percentage to $307 million.
These results indicate that Instacart continued generating substantial cash while expanding its operations.
Furthermore, the company repurchased approximately $230 million worth of shares during the quarter.
Instacart ended the reporting period with around $1 billion in cash and similar liquid assets, providing financial flexibility as it prepares for the proposed acquisition.
What the DoorDash Instacart Deal Means for Investors
The planned $17 billion acquisition represents a significant development for DoorDash and the broader online delivery industry.
By combining their operations, the companies could expand their reach across restaurant delivery, grocery shopping, and retail services.
Additionally, Instacart’s established advertising business and retailer relationships could complement DoorDash’s existing delivery infrastructure.
However, investors will need to assess potential integration costs, regulatory considerations, and the financial implications of the transaction.
For now, the strong quarterly earnings and positive initial stock market reaction suggest that investors are closely watching the companies’ next steps.
DoorDash Outlook Strengthens Following Earnings Beat
Overall, DoorDash’s better-than-expected third-quarter earnings and proposed Instacart acquisition highlight its ambitions to expand beyond its traditional delivery business.
Meanwhile, Instacart’s growing transaction volumes, advertising revenue, and profitability demonstrate the financial strength of the business DoorDash intends to acquire.
Although the transaction remains subject to approval, the combination could create new opportunities for growth and operational efficiencies.
Looking ahead, investors will monitor regulatory developments, acquisition financing, and future earnings reports to assess the long-term impact of the proposed merger on DoorDash’s financial performance and market position.
