Serve Robotics Inc. (SERV) Reports Q3 Loss, Tops Revenue Estimates

Core Insights - Serve Robotics Inc. reported a quarterly loss of $0.54 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.37, marking an earnings surprise of -45.95% [1] - The company generated revenues of $0.69 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 0.29% and showing significant growth from $0.22 million a year ago [2] - The stock has underperformed, losing approximately 23.5% since the beginning of the year, while the S&P 500 has gained 16.4% [3] Financial Performance - Over the last four quarters, Serve Robotics has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.37 on revenues of $1.57 million, and for the current fiscal year, it is -$1.30 on revenues of $3.34 million [7] Market Outlook - The company's earnings outlook is crucial for assessing future stock performance, with a favorable trend in estimate revisions noted prior to the earnings release [4][6] - The Zacks Rank for Serve Robotics is currently 2 (Buy), indicating expectations for the stock to outperform the market in the near future [6] Industry Context - The Computers - IT Services industry, to which Serve Robotics belongs, is currently in the top 25% of over 250 Zacks industries, suggesting a favorable environment for stocks in this sector [8]