Instacart Predicts Strong Q3 Performance, Beats Estimates with $9-9.15B GTV Forecast

Instacart forecasts Q3 gross transaction value above estimates at $9-9.15 bln, up 11% YoY. The company has doubled down on matching in-store prices to attract value-seeking consumers. Total revenue of $914 mln topped estimates, and quarterly adjusted earnings of 41 cents per share also beat estimates. Instacart reiterated its target for year-on-year GTV growth between 8% and 10%.

Instacart Inc. (CART) shares rose approximately 14% to $56.30 in premarket trading on July 2, 2025, following the company's Q2 earnings report and its forecast for the third quarter. The grocery delivery platform reported a Q2 gross transaction value (GTV) of $9.08 billion, an 11% year-over-year increase [2]. This performance exceeded analyst estimates of $8.99 billion.

Instacart's Q2 adjusted earnings per share came in at 41 cents, surpassing estimates of 38 cents. The company attributed its strong performance to resilient demand for low-cost grocery deliveries. Instacart has been doubling down on matching in-store prices to attract value-seeking consumers, as outlined in its strategic push to offer cheaper groceries through its platform [1].

The company's partnership with Uber Eats (UBER) has also contributed to its growth by adding restaurants to its platform. Instacart's current-quarter GTV forecast ranges from $9 billion to $9.15 billion, which is above Wall Street estimates of $8.99 billion [2].

Instacart reiterated its target for year-on-year GTV growth between 8% and 10% for the fiscal year. The company's advertising revenue rose 12% in the reported quarter, while total revenue of $914 million exceeded estimates of $896 million.

At least seven brokerages have raised their price targets on the stock, with J.P. Morgan hiking its target to $65 from $50. The brokerage noted that Instacart remains the market leader in third-party grocery delivery and continues to attract new customers [1]. Seventeen out of 31 brokerages rate the stock as "buy" or higher, with a median price target of $56.50.

Instacart's stock has been up about 19% year-to-date (YTD) up to the last close. The company's strong Q2 results and positive Q3 forecast have boosted investor confidence in the company's ability to maintain its market leadership position.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3U00GD:0-instacart-jumps-after-gross-transaction-value-forecast-above-estimates/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3TZ2C7:0-instacart-forecasts-strong-quarter-on-demand-for-cheaper-grocery-deliveries/