Serve Robotics (NASDAQ:SERV) Posts Earnings Results, Misses Expectations By $0.11 EPS

Serve Robotics (NASDAQ:SERV) announced its quarterly earnings data on Thursday. The company reported ($0.80) EPS for the quarter, missing analysts’ consensus estimates of ($0.69) by ($0.11), Zacks reports. Serve Robotics had a negative return on equity of 47.31% and a negative net margin of 2,639.98%.The company had revenue of $3.24 million for the quarter, compared to analyst estimates of $3.51 million.

Here are the key takeaways from Serve Robotics’ conference call:

• 2026 revenue guidance was cut sharply to $9 million-$10 million from $26 million, following a Q2 decline in delivery revenue and the removal of an expected second-half Uber volume ramp.
• Serve said it currently does not expect to renew its Uber agreement when it expires in early 2027 unless the operating model and integration materially improve, although discussions remain ongoing.
• The company highlighted growing diversification: DoorDash delivery volume increased nearly 50% sequentially, advertising generated nearly half of robotic food-delivery revenue, and hospital robotics added recurring revenue through seven contract extensions and two new hospital wins.
• Management is reducing 2026 capital expenditure guidance to approximately $15 million-$17 million and non-GAAP operating expense guidance to $140 million-$150 million, while preserving investment in autonomy and software; Serve ended Q2 with more than $240 million in cash and marketable securities.
• Serve plans upcoming initiatives including a new marketplace partnership, two market launches, the Beacon merchant-integration product, direct-demand capabilities, and autonomy upgrades intended to improve fleet utilization and unit economics.

Serve Robotics Price Performance

SERV stock traded down $0.57 during trading hours on Friday, reaching $5.11. 7,296,298 shares of the stock were exchanged, compared to its average volume of 4,816,495. The firm’s 50-day moving average is $6.32 and its 200-day moving average is $8.46. Serve Robotics has a 12 month low of $4.32 and a 12 month high of $18.64. The company has a market cap of $394.97 million, a price-to-earnings ratio of -2.53 and a beta of 1.34.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on SERV shares. Freedom Capital lowered Serve Robotics from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 13th. Guggenheim began coverage on shares of Serve Robotics in a research note on Monday, April 20th. They set a “buy” rating and a $13.00 price objective on the stock. LADENBURG THALM/SH SH boosted their price objective on shares of Serve Robotics from $15.00 to $16.60 and gave the company a “buy” rating in a report on Wednesday, May 13th. Weiss Ratings raised shares of Serve Robotics from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Tuesday, July 21st. Finally, Oppenheimer cut their target price on shares of Serve Robotics from $20.00 to $7.00 and set an “outperform” rating on the stock in a report on Friday. Six research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, Serve Robotics has an average rating of “Moderate Buy” and a consensus target price of $15.66.

Key Headlines Impacting Serve Robotics

Here are the key news stories impacting Serve Robotics this week:

• Positive Sentiment: Strong revenue growth and diversification: Second-quarter revenue rose 404% year over year to $3.24 million, with growth across fleet services and software. Serve also expanded beyond food delivery through partnerships in healthcare, grocery and laundry, while recurring revenue exceeded 50% of total revenue. Serve Robotics Announces Second Quarter 2026 Results
• Positive Sentiment: Liquidity remains strong: Serve ended June with approximately $240.4 million in cash and marketable securities, giving it flexibility to invest in its robot fleet, technology and commercial expansion. Management also reduced its 2026 non-GAAP operating-expense outlook to $140 million-$150 million from $160 million-$170 million.
• Neutral Sentiment: Growth opportunities remain speculative: Coverage highlighting Serve’s autonomous food-delivery strategy suggests potential long-term upside if robot utilization and partner demand improve, but the investment case remains dependent on scaling deployments profitably. Serve Robotics Is Crashing: Buy the Dip?
• Negative Sentiment: 2026 revenue guidance was sharply reduced: Serve now expects full-year revenue of $9 million-$10 million, far below the roughly $25.8 million analyst consensus. The cut reflects lower-than-expected Uber Eats delivery volumes and the removal of projected second-half demand.
• Negative Sentiment: Quarterly loss exceeded expectations: Serve reported a GAAP loss of $0.80 per share versus the consensus loss estimate of $0.69 and a $0.36 loss in the year-ago quarter. Revenue also fell short of estimates, while the company posted a $64.1 million net loss and $57.3 million in operating expenses. Serve Robotics Reports Q2 Loss, Lags Revenue Estimates
• Negative Sentiment: Analyst sentiment weakened: Cantor Fitzgerald downgraded SERV from “overweight” to “neutral,” adding near-term pressure following the earnings release.

Insider Transactions at Serve Robotics

In related news, Director David Michael Goldberg sold 10,600 shares of the stock in a transaction dated Tuesday, June 16th. The stock was sold at an average price of $7.20, for a total transaction of $76,320.00. Following the completion of the transaction, the director directly owned 35,125 shares in the company, valued at approximately $252,900. This trade represents a 23.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Touraj Parang sold 4,219 shares of Serve Robotics stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $7.24, for a total value of $30,545.56. Following the completion of the sale, the chief operating officer directly owned 1,298,244 shares in the company, valued at approximately $9,399,286.56. This represents a 0.32% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 32,200 shares of company stock valued at $232,704 over the last three months. Company insiders own 5.00% of the company’s stock.

Institutional Investors Weigh In On Serve Robotics

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. boosted its stake in shares of Serve Robotics by 43.1% during the 4th quarter. Invesco Ltd. now owns 35,433 shares of the company’s stock worth $368,000 after buying an additional 10,678 shares during the last quarter. Creek Drive Management Group LLC bought a new position in shares of Serve Robotics in the 4th quarter valued at about $4,912,000. Mercer Global Advisors Inc. ADV acquired a new stake in shares of Serve Robotics in the fourth quarter valued at about $106,000. VARCOV Co. bought a new stake in Serve Robotics during the fourth quarter worth about $1,751,000. Finally, Sphera Management Technology Funds Ltd acquired a new position in Serve Robotics during the fourth quarter valued at approximately $830,000.

About Serve Robotics

Serve Robotics develops and operates autonomous sidewalk delivery robots designed to transform last-mile logistics for restaurants, retailers and grocery brands. By combining proprietary hardware, sensor suites and dispatch software, the company enables on-demand deliveries of food, beverages and consumer goods while minimizing reliance on traditional vehicle fleets.

The core Serve robot integrates four-wheeled mobility, LiDAR and vision cameras with AI-driven navigation algorithms to detect obstacles, traverse urban sidewalks and interact safely with pedestrians.