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

What the report says

CNBC reported that Carvana shares dropped sharply in after-hours trading Wednesday after the online auto retailer issued full-year earnings guidance that came in below several Wall Street forecasts, despite stronger-than-expected second-quarter results. The company said it expects 2026 adjusted earnings of $2.7 billion to $3 billion, compared with analyst estimates cited by CNBC that included $3 billion to $3.2 billion from Deutsche Bank and $4.45 billion from Morgan Stanley.

According to CNBC, the stock initially fell more than 20% after the release, then recovered part of the decline and was trading about 10% lower before the company’s analyst call. Carvana reported second-quarter earnings per share of 42 cents, slightly above the 41 cents expected by analysts surveyed by LSEG, and revenue of $7.38 billion, above the $6.91 billion estimate.

The company’s quarterly figures included net income of $513 million, an increase of $205 million from the prior year, and vehicle sales of 197,325 units from April through June, up 38%. CNBC noted that Carvana’s total gross profit per unit, a closely watched metric for investors, declined by about 6% and was below some expectations. The company also reported record adjusted EBITDA of $769 million for the quarter and $1.4 billion for the first half.

Carvana said it expects retail unit sales to rise sequentially in the third quarter. CEO Ernie Garcia said in company materials that Carvana remains focused on long-term growth, including a target of selling 3 million cars annually and reaching a 13.5% adjusted EBITDA margin between 2030 and 2035. CNBC reported that Carvana is also expanding into new-vehicle sales through Stellantis franchised dealerships.