DoorDash (DASH) stock was up about 10% in Thursday’s pre-market trading, as investors cheered the food delivery company’s first-quarter results. While Q1 revenue fell short of estimates, the company impressed investors with better-than-expected earnings and solid order guidance for the second quarter. The company is seeing resilient demand for its delivery services despite intense competition and macro uncertainties.
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DoorDash Beats Q1 Earnings Expectations
DoorDash reported a 33% year-over-year growth in its Q1 2026 revenue to $4.04 billion, but lagged the Street’s consensus estimate of $4.15 billion. Also, total orders grew 27% to $933 million, but fell short of the consensus expectation of $954 million.
While the company’s Q1 2026 earnings per share (EPS) declined 4.5% year-over-year to $0.42, it surpassed analysts’ consensus estimate of $0.36.
For the second quarter, DoorDash expects marketplace gross order value (GOV) in the range of $32.4 billion to $33.4 billion. Analysts were expecting Q2 GOV of $32.43 billion. In Q1 2026, marketplace GOV increased 37% year-over-year to $31.6 billion.
DoorDash is making significant investments in its platform and adding new features and services while integrating its recent acquisitions. Some of the notable acquisitions made by the company include SevenRooms and Deliveroo. The company is expanding its global presence and improving its artificial intelligence (AI) features to remain competitive against rivals such as Uber Technologies’ (UBER) Uber Eats.
BofA Analyst Reacts to DoorDash’s Q1 Earnings
Following the Q1 print, Bank of America analyst Justin Post reiterated a Buy rating on DoorDash stock with a price target of $272. The 5-star analyst thinks that the post-earnings rally in DASH stock was driven by solid Q2 GOV guidance and reiteration of the full-year margin outlook despite challenges in the first half of the year.
Post sees the potential for positive re-rating as year-over-year margins are expected to turn positive in the second half of the year. Moreover, Wall Street expects improved product momentum in 2027.
Is DASH a Good Stock to Buy?
Currently, Wall Street has a Strong Buy consensus rating on DoorDash stock based on 22 Buys and seven Holds. The average DASH stock price target of $247.89 indicates 48% upside potential.
These ratings/price targets might be revised as more analysts react to the company’s Q1 print.
