Grab Q1 2026 earnings surge to S$174 million, driver incentives rose

Grab Holdings’ earnings surged more than fourfold in the first quarter of 2026, as the company posted higher revenue across its on-demand and financial services businesses.

Grab reported earnings of US$136 million (S$174 million) for Q1 2026, up 466.7 per cent from US$24 million (S$30.6 million) in the same period a year earlier.

The increase was driven by higher revenue, as well as changes in the fair value of financial assets and liabilities, The Business Times (BT) reported.

Grab said revenue for Q1 2026 also rose 24 per cent year-on-year to US$955 million (S$1.2 billion), from US$773 million (S$936 million) a year earlier, supported by growth in its on-demand and financial services segments.

“Strong start” to 2026

Grab co-founder and group chief executive officer Anthony Tan said in the company’s press release that Grab had a “strong start to 2026”, despite the first quarter typically being its seasonally softest.

He added that Grab’s results showed the resilience of its platform, especially as Southeast Asia faced macroeconomic uncertainty from the fuel crisis brought about by the U.S. and Israeli military attack on Iran, and Iran's attacks on shipping through the Strait of Hormuz.

Looking ahead to the rest of the year, Tan mentioned leaning into AI to further personalise experiences for their users.

Grab chief financial officer Peter Oey said the company’s first-quarter performance reflected “consistent execution” and growing operating leverage across the platform.

Driver incentives rose due to festive demand and higher fuel costs

Grab’s total incentives stood at US$650 million (S$830 million) for Q1 2026.

According to Grab, on-demand incentives as a proportion of on-demand GMV rose by 46 basis points year-on-year to 10.5 per cent, due to higher partner incentives during festive demand and efforts to support driver-partner earnings amid higher fuel costs in the region.

“We expect this first quarter to be a peak in driver incentives,” Grab chief operating officer Alex Hungate said, according to a Grab earnings call transcript.

Hungate also said Grab has other ways to defend its margin trajectory, including through advertising services and monetisation of its financial services business.

Hungate noted, however, that if fuel pressures persist through 2026, some costs may eventually be passed on to consumers.

“But of course, we’ll do that very judiciously, because we want to maintain healthy demand for our driver-partners through this difficult time,” Hungate added.

Grab supports drivers amid higher fuel costs

Grab said active driver-partners grew 16 per cent year-on-year to reach another all-time high.

The company added that it had deployed targeted earnings support to maintain driver supply amid elevated fuel costs, while also accelerating the expansion of its electric vehicle ecosystem.

Grab was monitoring the fuel situation and would act if needed in the medium term, Hungate said during the earnings call.

“This fuel crisis has become an opportunity in the sense that it helps us to accelerate that EV transition,” he added.

The company said it continues to expect revenue of between US$4.04 billion (S$5.16 billion) and US$4.10 billion (S$5.24 billion), representing a year-on-year growth rate of 20 to 25 per cent.