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Investing.com -- Instacart ( Maplebear Inc.) (NASDAQ:CART) shares surged as much as 9.4% in after-hours trading Thursday after the online grocery delivery company posted second-quarter earnings and revenue that handily beat Wall Street estimates, signaling continued momentum in its advertising and logistics engines. The strong financial performance, coupled with upbeat forward guidance, bolstered investor confidence in the company’s positioning within the digitally enabled grocery space.
Instacart reported adjusted earnings of $0.41 per share, easily surpassing the $0.18 consensus estimate. Revenue for the quarter reached $914 million, an 11% increase year-over-year, topping analyst expectations of $851 million.
The company processed 82.7 million orders in Q2, a 17% increase from the year-earlier quarter, while Gross Transaction (JO:NTUJ) Value hit $9.08 billion, up 11% year-over-year. Adjusted EBITDA climbed 26% to $262 million, representing 2.9% of GTV and 29% of revenue, while net income nearly doubled to $116 million.
“Our strategy is working: we’re accelerating online grocery adoption by creating better customer experiences, deepening retailer partnerships, and leveraging our data in innovative ways — all while expanding profitability,” said CEO Fidji Simo in a letter to shareholders. “I’m incredibly excited by how our business is operating today and the momentum we’re building for the future.”
Instacart’s advertising business remained a highlight, with ad and other revenue growing 12% to $255 million, underpinned by over 7,500 brand partners now using the platform. The company also highlighted its rapid scaling of AI-driven personalization tools and enterprise partnerships, which are enabling grocery retailers like Costco (NASDAQ:COST) and Publix to expand digitally.
Founded in 2012, Instacart has expanded from a personal shopper service into a broader e-commerce platform for the grocery industry, encompassing ad tools, checkout software, and fulfillment optimization. Priority delivery, its fastest service, now completes nearly 25% of orders in under 30 minutes and has been extended to major partners including Costco and Kroger (NYSE:KR).
Looking ahead, Instacart expects Q3 GTV in the range of $9.0 billion to $9.15 billion, an 8% to 10% increase year-over-year, paired with adjusted EBITDA guidance of $260 million to $270 million.
Instacart also signaled shareholder-friendly capital allocation, announcing $111 million in share repurchases in Q2 and authorizing an additional $250 million in buybacks. With $1.7 billion in cash and equivalents, analysts are likely to remain upbeat on the company’s ability to scale its broader ambition across digital grocery, retail media, and AI-enabled commerce.