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Carvana stock falls 15% as auto retailer's 2026 earnings guidance misses Wall Street's expectations

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📰 source: cnbc_topnews · 💼 business

carvana stock fell 15% in after-hours trading wednesday after the company issued 2026 earnings guidance of $2.7 billion to $3 billion, missing wall street expectations. analysts had forecast $3 billion to $3.2 billion (deutsche bank) and $4.45 billion (morgan stanley).

for the second quarter, carvana reported net income of $513 million, up $205 million from a year earlier, and revenue of $7.38 billion, beating estimates of $6.91 billion. vehicle sales rose 38% to 197,325 units. the company expects a flat second half of 2026, projecting $1.3 billion to $1.6 billion in adjusted earnings, still above last year's record $2.2 billion.

ceo ernie garcia said carvana remains on track to sell 3 million cars per year with a 13.5% adjusted ebitda margin by 2030-2035. adjusted margin in q2 was 10.4%, down 2 percentage points year-over-year as the company expands.

why it matters: guidance miss signals slower growth ahead despite strong q2 beat, raising questions about carvana's expansion pace.

source: cnbc_topnews
sentiment: -0.60 · impact: 0.50

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