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Shares of Instacart jumped 14% in extended trading Thursday after the company delivered stronger-than-expected fourth-quarter revenue and issued upbeat first-quarter guidance, reinforcing investor confidence in its marketplace strategy and expanding enterprise business.

The post-earnings rally marks one of the stock’s sharpest single-day gains since its public debut, as Wall Street responded to improving order growth, accelerating gross transaction value and solid profitability metrics.

Revenue and Growth Outpace Expectations

For the fourth quarter, Instacart reported revenue of $992 million, up 12% from $883 million a year earlier and ahead of analyst estimates of $974 million. Net income reached $81 million, or 30 cents per share.

Gross transaction value, a key metric tracking the total dollar value of goods sold through the platform, climbed 14% year over year to $9.85 billion. That figure exceeded the $9.54 billion analysts had projected and represented the company’s strongest quarterly GTV growth rate in three years.

Total orders reached 89.5 million during the quarter, comfortably above expectations of 87.8 million, signaling continued consumer demand for grocery delivery despite easing pandemic-era tailwinds.

Adjusted EBITDA came in at $303 million, topping estimates of $292 million, reflecting disciplined cost management and improving operating leverage.

Upbeat First-Quarter Forecast

Looking ahead, Instacart projected first-quarter gross transaction value between $10.13 billion and $10.28 billion, well above the $9.97 billion consensus estimate. The company expects adjusted EBITDA between $280 million and $290 million, compared with forecasts of $277 million.

The guidance suggests continued momentum in both order volume and basket size, even as the broader e-commerce and food delivery sectors face pricing competition and macroeconomic uncertainty.

CEO Chris Rogers told shareholders that the company’s execution and focus on customer experience are driving sustained engagement across its consumer marketplace and enterprise offerings.

Enterprise Platform Expands Retail Footprint

A major contributor to the quarter’s performance was growth in Instacart’s enterprise platform, which provides white-label technology, fulfillment tools and digital infrastructure to grocery chains and retailers.

The company added 70 net new retailers to its enterprise ecosystem last year, expanding its footprint across regional and national grocers. Finance chief Emily Reuter noted that this business segment is becoming a strategic differentiator, helping retailers modernize their digital storefronts while boosting Instacart’s GTV.

Beyond domestic growth, the company continues to invest in infrastructure upgrades, selective international expansion and artificial intelligence tools designed to improve logistics efficiency and product discovery.

AI Innovation and Competitive Pressures

Like many food delivery and e-commerce platforms, Instacart is increasingly leaning into AI to sharpen its competitive edge. Recent initiatives include AI-powered tools for grocers to optimize pricing and inventory, as well as an integration with OpenAI’s ChatGPT to enhance search and shopping personalization.

However, not all AI experiments have landed smoothly. In December, the company faced criticism over limited pricing tests that displayed different item prices to customers. Instacart later halted the experiment, acknowledging it “missed the mark.”

Meanwhile, competition in grocery delivery continues to intensify. DoorDash and Uber Eats have both expanded aggressively into grocery, adding retail partnerships and rolling out AI-powered shopping tools. This week, Uber Eats introduced a feature allowing users to build grocery carts from text prompts or uploaded images.

Despite the crowded landscape, Instacart maintains it holds a leading position among digital-first grocery platforms, supported by long-standing retailer relationships and an established logistics network.

Legal Costs and Operating Expenses

Operating expenses rose year over year, partly due to higher general and administrative costs tied to non-recurring legal and regulatory matters. The company recorded a $60 million refund settlement with the Federal Trade Commission related to allegations of deceptive practices.

Even with these headwinds, Instacart preserved healthy margins and demonstrated resilience in a sector where profitability remains elusive for many competitors.

Market Outlook

The broader U.S. online grocery market, estimated to exceed $150 billion annually, continues to evolve as consumers blend in-store shopping with digital ordering. While growth rates have normalized from pandemic highs, convenience, time savings and subscription models remain durable drivers.

Instacart’s latest results suggest it is successfully transitioning from a high-growth pandemic beneficiary to a more mature, technology-driven retail infrastructure platform. For investors, the combination of revenue acceleration, expanding enterprise partnerships and disciplined profitability provides a clearer roadmap for sustained long-term growth.

With shares rallying sharply on the earnings beat and forward guidance, the company appears to have regained momentum at a time when execution and differentiation matter more than ever in the competitive grocery delivery market.