Carvana (NYSE:CVNA) Posts Quarterly Earnings Results, Beats Estimates By $0.04 EPS

Carvana (NYSE:CVNA) issued its quarterly earnings results on Wednesday. The company reported $0.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.38 by $0.04, FiscalAI reports. The business had revenue of $7.38 billion for the quarter, compared to analyst estimates of $6.90 billion. Carvana had a return on equity of 41.46% and a net margin of 6.40%.The firm’s revenue for the quarter was up 52.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.51 earnings per share.

Here are the key takeaways from Carvana’s conference call:

• Record growth and profitability: Q2 retail units rose 38% year over year to 197,325, revenue increased 52% to $7.376 billion, and adjusted EBITDA reached a record $769 million. Net income was $513 million, while adjusted EBITDA exceeded a $3 billion annualized run rate for the first time.
• Strong regional inventory feedback loop: Carvana said regions with the largest production-capacity additions saw inventory growth of 57% and sales growth of 54%, reinforcing management’s view that greater selection, faster delivery, and more efficient marketing can compound demand. The company believes this supports its long-term goal of selling 3 million vehicles annually at a 13.5% adjusted EBITDA margin by 2030–2035.
• Inventory remains an execution constraint: Inventory growth lagged sales growth during the quarter, pressuring conversion and potentially forcing a trade-off between unit growth and profitability. Management said reconditioning costs have recovered and inventory growth began improving in mid-Q2, but new operational tools are still being rolled out and the company expects to invest more in advertising in Q3.
• Per-unit economics faced pressure: Non-GAAP retail GPU fell $105 and other GPU declined $192 year over year, primarily due to lapping tariff-related benefits, higher fuel and benchmark rates, and lower customer financing rates. Adjusted EBITDA margin decreased to 10.4% from 12.4%, although management cited approximately $300 per vehicle of underlying efficiency gains that partially offset these headwinds.
• Guidance and balance sheet strengthened: Carvana expects Q3 retail units to increase sequentially and projects full-year 2026 adjusted EBITDA of $2.7 billion–$3.0 billion, up from $2.24 billion in 2025. Net debt to trailing 12-month adjusted EBITDA improved to 1.0 times, while management emphasized that strong returns on operating assets favor continued investment in the company’s growth infrastructure rather than near-term capital returns.

Carvana Stock Down 11.3%

Shares of CVNA stock traded down $7.51 on Thursday, hitting $58.80. 16,319,860 shares of the stock were exchanged, compared to its average volume of 14,946,634. The company has a current ratio of 4.09, a quick ratio of 2.57 and a debt-to-equity ratio of 1.05. The firm has a market capitalization of $64.50 billion, a P/E ratio of 35.87, a price-to-earnings-growth ratio of 14.83 and a beta of 3.46. Carvana has a fifty-two week low of $54.46 and a fifty-two week high of $97.38. The business has a 50-day moving average of $67.03 and a 200 day moving average of $71.05.

Key Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Carvana reported record second-quarter results, including $7.38 billion in revenue, up 52.4% year over year, earnings of $0.42 per share, record retail unit sales, $513 million in net income and record adjusted EBITDA of $769 million. Revenue exceeded estimates, while EPS was at or above consensus depending on the estimate used. Carvana Announces Record Second Quarter 2026 Results
• Positive Sentiment: Management said software investments and artificial-intelligence tools are reducing customer-service costs and helping scale operations. The company also highlighted its 10th consecutive quarter of growth and profitability. Carvana Slashes Customer Service Costs Through AI Agent
• Positive Sentiment: Carvana forecast full-year earnings of $2.7 billion to $3.0 billion, implying $1.3 billion to $1.6 billion of adjusted earnings in the second half and signaling continued confidence in demand and execution. Carvana posts record quarterly profits, forecasts up to $3 billion in earnings this year
• Neutral Sentiment: Carvana expanded same-day delivery to the Fort Myers area, a move that could improve customer convenience and support local sales, although the near-term financial effect is unclear. Carvana Expands Same-Day Delivery to Fort Myers
• Negative Sentiment: The stock fell despite the quarterly beat because investors viewed the full-year outlook as insufficient relative to elevated Wall Street expectations. Reports also cited uncertainty around future growth and earnings assumptions. Carvana Stock Falls After Earnings as Guidance Leaves More Questions Than Answers
• Negative Sentiment: Citizens JMP and BTIG lowered their price targets to $83 and $87, respectively, while Needham and Morgan Stanley also reduced targets. Although the firms remained constructive—with “market outperform” or “buy” ratings—the cuts add pressure to the shares and suggest expectations have been reset. Carvana Reports Record Q2 Beat — Stock Falls Anyway

Analyst Ratings Changes

A number of research analysts have issued reports on the stock. Gordon Haskett upped their target price on shares of Carvana from $67.00 to $85.00 and gave the company a “hold” rating in a research report on Thursday, April 30th. Morgan Stanley set a $90.00 price target on shares of Carvana and gave the stock an “overweight” rating in a research note on Thursday. Jefferies Financial Group cut their price objective on shares of Carvana from $95.00 to $90.00 and set a “buy” rating on the stock in a report on Tuesday, July 14th. DA Davidson raised their price objective on shares of Carvana from $64.00 to $67.00 and gave the company a “neutral” rating in a research note on Friday, May 1st. Finally, Robert W. Baird set a $72.00 target price on shares of Carvana in a report on Thursday. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $89.10.

Insiders Place Their Bets

In related news, Director J Danforth Quayle sold 14,525 shares of the stock in a transaction on Wednesday, June 10th. The shares were sold at an average price of $70.00, for a total transaction of $1,016,750.00. Following the completion of the transaction, the director owned 214,960 shares in the company, valued at approximately $15,047,200. This represents a 6.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Stephen R. Palmer sold 5,000 shares of the firm’s stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $68.53, for a total transaction of $342,650.00. Following the completion of the transaction, the vice president directly owned 144,934 shares of the company’s stock, valued at approximately $9,932,327.02. This trade represents a 3.33% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 396,962 shares of company stock worth $28,525,088 in the last 90 days. Company insiders own 15.19% of the company’s stock.

Hedge Funds Weigh In On Carvana

A number of large investors have recently modified their holdings of CVNA. Royal Bank of Canada raised its stake in shares of Carvana by 40.8% during the 1st quarter. Royal Bank of Canada now owns 29,867 shares of the company’s stock worth $6,243,000 after purchasing an additional 8,654 shares in the last quarter. Geneos Wealth Management Inc. increased its holdings in Carvana by 251.4% during the first quarter. Geneos Wealth Management Inc. now owns 253 shares of the company’s stock worth $53,000 after buying an additional 181 shares during the last quarter. Cerity Partners LLC increased its holdings in Carvana by 28.8% during the second quarter. Cerity Partners LLC now owns 5,481 shares of the company’s stock worth $1,847,000 after buying an additional 1,226 shares during the last quarter. AXA S.A. raised its position in Carvana by 340.7% during the second quarter. AXA S.A. now owns 4,253 shares of the company’s stock worth $1,433,000 after acquiring an additional 3,288 shares in the last quarter. Finally, NewEdge Advisors LLC raised its position in Carvana by 9.1% during the second quarter. NewEdge Advisors LLC now owns 9,893 shares of the company’s stock worth $3,334,000 after acquiring an additional 825 shares in the last quarter. 56.71% of the stock is currently owned by institutional investors and hedge funds.

About Carvana

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.