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Instacart Tops Q2 Estimates and Raises Q3 Targets as AI and Ads Drive Results

The company says stronger ad revenue, tech acquisitions and a new AI assistant are helping lift cash flow and profitability prospects.

Overview

  • Instacart reported Q2 results that beat estimates with gross transaction value up 14% to $10.35 billion, revenue of $1.043 billion and adjusted core profit of about $313 million.
  • The company issued Q3 guidance that is above analyst averages, projecting GTV of $10.30 billion to $10.55 billion and adjusted core profit of $320 million to $340 million.
  • Free cash flow jumped 156% year over year to $480 million largely because the company collected a large accounts receivable balance in the quarter.
  • Management pointed to faster-growing advertising revenue, which rose 16% to $297 million, plus recent tech buys and a North America rollout of an 'Agentic' AI assistant as drivers of better order quality and fulfillment efficiency.
  • These results arrive as grocery demand stays price-sensitive and seasonal headwinds loom for Q3, so Instacart plans to lean on inventory data, retailer partnerships and ad monetization to sustain growth and margin gains.