DoorDash (DASH) shares climbed 6.50% to $180.51, gaining $11.02, after the company reported strong third-quarter financial results marked by $4.6 billion in revenue and a near-doubling of net income attributable to common stockholders. Alongside the earnings report, DoorDash announced a definitive agreement to acquire grocery delivery platform Instacart for approximately $17 billion, a transaction that extends its grocery delivery operations and long-term growth strategy. The advance came as the quarterly report showed strong growth across orders, order value, and profitability.

DoorDash Stock Rises as Q3 Revenue and Profit Increase

DoorDash reported revenue of $4.616 billion for the quarter ended September 30, 2026, marking a 34% year-over-year increase. Net income attributable to common stockholders rose 91% to $466 million, up from $244 million in the same period last year. The company said the results reflected higher order volumes, increased marketplace activity, and continued expansion across its delivery businesses.

Total orders increased 28% year over year to 993 million, while Marketplace Gross Order Value (GOV) climbed 36% to $33.9 billion. Excluding the contribution from Deliveroo, order growth reached 17%, Marketplace GOV increased 23%, and revenue growth also came in at 23%, highlighting continued expansion across DoorDash's existing operations. The gap between the reported and ex-Deliveroo figures shows that part of the headline growth came from Deliveroo's contribution, with the underlying marketplace still expanding at a double-digit pace.

Adjusted EBITDA increased 41% to $1.06 billion, compared with $754 million in the third quarter of 2025. Operating cash flow reached $994 million, while free cash flow rose 9% year over year to $787 million. The figures point to stronger profitability alongside continued investment in technology, merchant services, and delivery infrastructure.

DoorDash Expands Grocery Strategy Through $17 Billion Instacart Deal

DoorDash announced a definitive agreement to acquire Instacart for $65 per share, representing an equity value of approximately $17 billion. The proposed price offers a 26% premium to Instacart's October 22 closing price, before reports of a potential transaction emerged. Under the agreement, Instacart shareholders can elect cash, DoorDash shares, or a combination of both, subject to allocation limits on the mix of consideration.

DoorDash expects to finance the cash portion through existing cash reserves and debt financing, supported by a committed bridge loan facility. The transaction requires shareholder approval, regulatory clearances, and other customary closing conditions before completion. The companies expect to close the acquisition in late 2027 or during the first half of 2028. With that timeline in place, shareholder votes and regulatory clearances are among the key milestones to follow between the announcement and any completed combination.

The acquisition aims to strengthen grocery delivery through greater network density, improved logistics, and lower fulfillment costs. DoorDash also expects the combined businesses to generate at least $500 million in annual net synergies over several years. Nevertheless, the company plans to reinvest heavily during the first year after closing before targeting positive net synergies from the second year onward. For readers, the deal extends a delivery business that already spans restaurant, grocery, and retail services deeper into grocery fulfillment, where DoorDash is counting on density and cost efficiencies.

DoorDash Provides Q4 Outlook as Expansion Continues

DoorDash expects Marketplace GOV to reach between $35.4 billion and $36.4 billion in the fourth quarter of 2026, with adjusted EBITDA projected between $900 million and $1.1 billion over the same period. The guidance implies further sequential growth from the $33.9 billion in Marketplace GOV recorded in the third quarter. The targets reflect continued demand across restaurant, grocery, and retail delivery services, alongside ongoing investment in new markets. The adjusted EBITDA range spans both below and above the $1.06 billion posted in the third quarter.

The company continues to expand DashPass memberships, merchant partnerships, restaurant reservations, and international operations to support customer growth. DoorDash is also developing artificial intelligence tools and autonomous delivery capabilities to improve ordering and fulfillment. Its strategy prioritizes logistics infrastructure and merchant services as competition across local commerce continues to evolve.

Separately, DoorDash had repurchased 6.8 million shares for approximately $1 billion under its existing buyback authorization through October 28, 2026, leaving about $4 billion available under the company's $5 billion repurchase program. That capital return remains active alongside the acquisition's planned financing through cash reserves and debt.

Strong quarterly revenue and profit growth, combined with the proposed Instacart acquisition, place DoorDash's expansion strategy at the center of its latest financial update.

Source: Blockonomi