DoorDash shares cratered 14% in after-hours trading after the food delivery giant missed third-quarter earnings expectations and warned investors it plans to spend "several hundred million dollars" on new initiatives in 2026. The company's earnings of 55 cents per share fell well short of the 69 cents analysts expected, despite revenue beating estimates at $3.45 billion.
DoorDash just delivered some bitter medicine to Wall Street. The food delivery platform's stock nosedived 14% in after-hours trading after reporting third-quarter earnings that missed analyst expectations by a wide margin, coupled with a warning about massive spending plans ahead.
The company posted earnings of 55 cents per share, falling well short of the 69 cents Wall Street expected. But here's the kicker - DoorDash told investors it's planning to spend "several hundred million dollars" on new initiatives and development in 2026, sending shares into a tailspin.
"We wish there was a way to grow a baby into an adult without investment, or to see the baby grow into an adult overnight, but we do not believe this is how life or business works," the company wrote in its earnings release. It's a colorful way to justify what amounts to a significant investment gamble that's clearly spooked investors.
The massive spending spree centers around a new global tech platform that DoorDash says progressed in 2025 but will accelerate dramatically next year. The company's already testing autonomous delivery through its Dot robot, which it unveiled in September, signaling a major push into next-generation logistics technology.
Despite the earnings miss, DoorDash did show strong operational momentum. Revenue climbed 27% year-over-year to $3.45 billion, beating the $3.36 billion analysts expected. Total orders surged 21% to 776 million during the quarter ended September 30, slightly ahead of FactSet's 770.13 million estimate.
The company's net income actually improved, rising to $244 million or 55 cents per share from $162 million or 38 cents per share a year ago. But investors are clearly more concerned about future profitability given the spending plans ahead.
DoorDash also just completed its biggest acquisition yet, closing the $3.9 billion purchase of British food delivery company Deliveroo on October 2. The company expects Deliveroo to contribute $45 million to adjusted EBITDA in Q4 and about $200 million in 2026, providing some offset to the increased spending.
