CART Q4 Deep Dive: Multi-Engine Growth Accelerates Amid Expanding Grocery Tech Partnerships

CART Q4 Deep Dive: Multi-Engine Growth Accelerates Amid Expanding Grocery Tech Partnerships

Petr Huřťák

Fri, February 13, 2026 at 10:40 PM GMT+9 5 min read

In this article:

•                                       StockStory Top Pick 
  

  CART

  +18.32%

Online grocery delivery platform Instacart (NASDAQ:CART) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 12.3% year on year to $992 million. Its non-GAAP profit of $0.97 per share was 2.8% above analysts’ consensus estimates.

Is now the time to buy CART? Find out in our full research report (it’s free).

Instacart (CART) Q4 CY2025 Highlights:

**Revenue:** $992 million vs analyst estimates of $972.2 million (12.3% year-on-year growth, 2% beat)

**Adjusted EPS:** $0.97 vs analyst estimates of $0.95 (2.8% beat)

**Adjusted EBITDA:** $303 million vs analyst estimates of $292.4 million (30.5% margin, 3.6% beat)

**Operating Margin:** 9.9%, down from 17.6% in the same quarter last year

**Market Capitalization:** $8.73 billion

StockStory’s Take

Instacart’s fourth quarter saw a strong positive market response as the company surpassed Wall Street’s revenue and profit expectations, with management attributing performance to robust user growth and deeper engagement. CEO Chris Rogers emphasized that growth was driven by momentum across both its consumer marketplace and enterprise partnerships, highlighting new integrations with major retailers and increased adoption of its advertising solutions. Notably, Instacart expanded its footprint internationally through partnerships with Costco in Europe and advanced its in-store technology offerings. Management credited the company’s focus on grocery-specific technology and its ability to manage complex retailer relationships as core reasons for the quarter’s success.

Looking ahead, Instacart’s leadership is focused on leveraging its differentiated technology platform and expanding enterprise relationships to sustain profitable growth. Management highlighted ongoing investments in artificial intelligence (AI) to improve operational efficiency and customer experience, with CFO Emily Maher noting that AI initiatives have already raised engineering productivity and system reliability. The company plans to further scale its advertising network and deepen international expansion, while remaining disciplined on costs. CEO Chris Rogers stated, “This is the moment for us to accelerate,” signaling an intent to press Instacart’s competitive advantage as grocery e-commerce adoption continues to grow.

Key Insights from Management’s Remarks

Management attributed the quarter’s momentum to increased customer engagement, enterprise expansion, and innovative technology rollouts, particularly in advertising and in-store solutions.

**User growth and engagement:** Management reported that Instacart reached over 26 million customers in 2025, with December marking a new high for monthly active users. The company saw improved retention and higher order frequency, which leadership linked to enhancements in product selection, convenience, and affordability.

**Enterprise platform expansion:** The enterprise segment, which provides grocers with tailored e-commerce and in-store technology, continued to grow. Instacart now powers over 380 grocery e-commerce sites and entered new international markets, notably launching with Costco in Spain and France. Management sees this segment as a key driver for deeper retailer integration and operational efficiency.

**Advertising ecosystem diversification:** The advertising business saw growth as Instacart diversified both advertiser demand and ad surfaces. Over 9,000 brands now advertise on the platform—up from 7,000 last year—supported by the expansion of Carrot Ads to more than 310 retailer-owned sites. Early trials of in-store ads via Caper Carts showed positive impacts on basket size.

**AI-driven operational improvements:** Investments in AI have increased engineering productivity by nearly 40% and enabled faster product rollouts. AI is being used to improve both internal operations and customer-facing features, such as Cart Assistant and personalized shopping experiences.

**International and in-store technology advances:** Instacart extended its technology offerings internationally and ramped up deployments of in-store tools like Caper Carts and FoodStorm, partnering with retailers such as Morrisons in the UK and Coles in Australia. These initiatives aim to digitize the physical shopping experience and unlock new advertising opportunities.

 






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Drivers of Future Performance

Instacart’s outlook is anchored by continued enterprise adoption, AI-driven efficiency gains, and further international expansion, while also managing competitive and macroeconomic pressures.

**Enterprise and international growth:** Management expects further expansion of enterprise partnerships, especially as more retailers seek integrated technology solutions in both North America and new international markets. The company anticipates increased adoption of offerings like Storefront Pro and Caper Carts abroad.

**AI and operational leverage:** The company is investing in AI to drive faster execution, higher reliability, and new customer features. Management believes that these advances will help sustain profitability even as Instacart reinvests in growth and faces moderating operating expense efficiencies compared to prior years.

**Advertising network scaling:** Leadership projects continued growth in advertising revenue, driven by platform diversification and new in-store and off-platform ad integrations. However, management acknowledged that macro uncertainty and evolving consumer behavior could impact the pace of advertising growth.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the pace of enterprise platform adoption and international expansion, particularly through new retail partnerships; (2) the scaling of AI-powered tools like Cart Assistant and their influence on customer engagement and operational efficiency; and (3) continued growth and resilience in the advertising business amid evolving macroeconomic conditions. Execution on in-store technology deployments and additional retailer integrations will also be key markers of Instacart’s strategic progress.

Instacart currently trades at $37.78, up from $33.24 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).

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