Serve Robotics (NASDAQ:SERV) Issues Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Serve Robotics (NASDAQ:SERV) issued its quarterly earnings results on Thursday. The company reported ($0.68) EPS for the quarter, topping the consensus estimate of ($0.70) by $0.02, Zacks reports. The company had revenue of $2.83 million during the quarter, compared to analyst estimates of $1.63 million. Serve Robotics had a negative net margin of 2,315.80% and a negative return on equity of 55.34%.

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

• Serve reported third-quarter revenue of $2.8 million, up more than 300% year over year, and raised its 2026 revenue outlook to $12 million from $9 million–$10 million. The new forecast implies about $3 million of fourth-quarter revenue.
• Delivery operations showed growth and efficiency gains: daily deliveries through DoorDash and Grubhub more than tripled from the end of Q2 to the end of Q3, while robots became 13% faster and maintained a 99.9% delivery completion rate. Management said fleet margin improved by more than 100 percentage points sequentially, helped by about $1 million in quarterly cost savings.
• The company launched Serve Physical AI Services, offering connectivity, real-world data, and data-curation tools to other robotics companies; Bedrock Robotics is a launch customer. Management cited interest across industries including construction, mining, and defense, but the offering is new and its revenue opportunity remains early.
• Despite improving costs, gross margin remained deeply negative at -266%, with a $7.6 million gross loss and a $59.2 million GAAP net loss for the quarter. Serve ended Q3 with more than $198 million in cash and marketable securities, while forecasting about $150 million in full-year non-GAAP operating expenses.

Serve Robotics Stock Up 38.8%

Shares of NASDAQ SERV traded up $0.90 during trading on Friday, hitting $3.22. 9,685,525 shares of the company were exchanged, compared to its average volume of 3,180,078. The company has a fifty day moving average price of $3.99 and a 200-day moving average price of $7.07. Serve Robotics has a 12-month low of $2.26 and a 12-month high of $16.08.

Insider Buying and Selling

In related news, CFO Brian Read sold 9,700 shares of the firm’s stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $4.80, for a total transaction of $46,560.00. Following the completion of the sale, the chief financial officer directly owned 276,002 shares in the company, valued at approximately $1,324,809.60. This trade represents a 3.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Touraj Parang sold 37,993 shares of Serve Robotics stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $4.55, for a total transaction of $172,868.15. Following the transaction, the chief operating officer directly owned 1,260,251 shares in the company, valued at $5,734,142.05. This trade represents a 2.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders sold 124,220 shares of company stock worth $585,554. Insiders own 5.00% of the company’s stock.

Key Headlines Impacting Serve Robotics

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

• Positive Sentiment: Serve reported third-quarter revenue of about $2.83 million, more than 300% above the year-earlier period and well ahead of analyst estimates of $1.63 million. Its loss of $0.68 per share was also narrower than estimates of roughly $0.70–$0.77. Serve Robotics Q3 results
• Positive Sentiment: The company raised its 2026 revenue guidance to $12 million, signaling improved expectations for growth. It also said daily average deliveries tripled in Q3, with new delivery partners, and that it launched its first international city in Australia in October. 2026 revenue guidance
• Neutral Sentiment: Serve launched physical-AI services, opening technology used by its robot fleet to other companies developing robots. This could create a business beyond deliveries, though the financial contribution and adoption are not yet established. Serve Robotics launches new business
• Negative Sentiment: Despite beating estimates, the quarterly loss widened to $0.68 per share from $0.54 a year earlier. The company also continues to report substantial negative margins, underscoring that rapid revenue growth has not yet translated into profitability. Serve Robotics Q3 loss

Analysts Set New Price Targets

Several equities research analysts recently issued reports on the company. Weiss Ratings upgraded Serve Robotics from a “sell (e+)” rating to a “sell (d-)” rating in a report on Friday, October 30th. Zacks Research cut Serve Robotics from a “hold” rating to a “strong sell” rating in a report on Tuesday, October 13th. Oppenheimer restated an “outperform” rating on shares of Serve Robotics in a research report on Friday. Yorkville Ives initiated coverage on Serve Robotics in a research note on Monday, October 5th. They issued an “outperform” rating and a $8.00 price target on the stock. Finally, Cantor Fitzgerald lowered shares of Serve Robotics from an “overweight” rating to a “neutral” rating in a report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $13.80.

About Serve Robotics

Serve Robotics develops and operates autonomous, electric sidewalk delivery robots designed to transport goods over short distances. Its robots use cameras, sensors, artificial intelligence and remote human assistance to navigate sidewalks, cross streets and interact with customers while delivering items such as restaurant meals, groceries and other local orders.

The company’s services are primarily aimed at on-demand delivery platforms, restaurants and retailers. Serve has deployed its robots for commercial deliveries in the United States, including the Los Angeles area, and has worked with partners such as Uber Eats to support local delivery operations.