Serve Robotics rises 38.8% after quarterly results show revenue surge and raised guidance

What happened

Serve Robotics (SERV) rose 38.8% on November 6, 2026, after it reported third-quarter results showing revenue growth of more than 300% and raised full-year 2026 revenue guidance to $12 million. The market value of the company was $225.4 million at the session close, and management said it tripled daily average deliveries in the quarter and launched service in its first international city in Australia, disclosures investors greeted positively.

How big was the move

The stock closed at $3.22 after it opened 13.4% above the previous close, part of a session that was 6.2 times a typical daily move for this stock. Trading volume was 2.9 times its 20-day average, and the move outperformed the Industrials sector median by 37.8 percentage points while the Industrials sector median rose 1.0% and the S&P 500 rose 0.3%. With a beta of 2.55, the stock tends to move more than the market, amplifying reactions to company news.

The technical picture

The stock was 7.2% above its 20-day moving average but 18.7% below its 50-day moving average and 53.9% below its 200-day moving average, with the 50-day average below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) was 49, in the neutral range between 30 and 70. Recent price action has been weak: the stock fell 27.6% over one month, fell 34.6% over three months and fell 72.4% over one year, leaving it 81.0 percentage points behind the S&P 500 for the year. The shares also sat 80.0% below the 52-week high, which underscores how far the stock has retreated before this rebound.

Fundamentals and valuation

For the four quarters through September 30, 2026, the company reported revenue of $9.9 million, which grew 411.0% from a year earlier and followed a quarter that showed growth of 426.4%. Diluted earnings per share for that period was $-2.59. Serve Robotics reported a balance sheet with net cash of $41.3 million and return on invested capital of 52.1%. Share count over one year increased by 48.7%.

Margins display unusually large percentage figures that reflect accounting or one-off items alongside the company’s scale: gross margin was 322.1% (a year earlier: 481.4%), operating margin was 2206.8% (a year earlier: 4424.2%), and free-cash-flow margin was 1784.8%. On valuation, the free-cash-flow yield was 78.7%. PromtFinance scores ranked the company’s Growth as 84 (Strong) while Value was 1 (Very weak) and Quality was 12 (Very weak), reflecting rapid top-line expansion amid weak traditional profit and quality metrics.

Taken together, the numbers portray a company with fast revenue expansion but unconventional margin profiles and an elevated share count. The growth figures help explain investor enthusiasm, yet the Value and Quality scores signal that traditional measures of profitability and balance-sheet strength remain weak.

Earnings and analyst expectations

Serve Robotics reported on November 5, 2026, earnings per share of $-0.68 against $-0.70 expected, 3.4% above estimates, and it has beaten estimates in one consecutive quarter. The average surprise over the last four reports was 1.8% below estimates, and the typical two-day reaction after recent reports saw the stock rose 0.1%. Analysts set a consensus price target of $7.00, which is 117.4% above the closing price, based on ratings from 23 analysts, with 70% rating the stock Buy. The company has scheduled its next report for November 11, 2026.

Market reaction appears to have been driven directly by the quarter and the raised guidance, and the trading session’s size and volume suggest investors were willing to reprice the shares on the new growth signals despite the long-running downtrend.

What to watch

• November 11, 2026: next scheduled earnings report
• Management's full-year 2026 revenue guidance of $12 million
• The company said it tripled daily average deliveries in Q3 and launched service in its first international city in Australia
• Consensus price target of $7.00, 117.4% above the closing price, from 23 analysts with 70% rating the stock Buy
• Net cash of $41.3 million and share count increased by 48.7% over one year