E-commerce used vehicle retailer Carvana CVNA reported earnings of 42 cents per share for the second quarter of 2026, in line with the Zacks Consensus Estimate. Earnings rose 61.5% year over year. Revenues of $7.37 billion increased 52.4% year over year and topped the consensus mark of $6.99 billion by 5.5%. The top-line beat reflected record retail volume and strong vehicle pricing.
Carvana Co. Price, Consensus and EPS Surprise
Carvana Co. price-consensus-eps-surprise-chart | Carvana Co. Quote
CVNA’s Retail Volume Reaches a Record
Retail vehicle sales increased 61.7% to $5.5 billion, supported by a 17.4% rise in revenue per retail unit to $27,908. Retail units sold advanced 37.7% to 197,325. Retail volumes have nearly doubled over the past two years and continued to outpace an industry that declined year over year. Wholesale sales and revenues grew 31.2% to $1.34 billion, while wholesale unit sales climbed 44.4% to 105,052.
CVNA currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Carvana’s Gross Profit Rises, GPU Declines
Total gross profit increased 30.1% to $1.38 billion. Retail vehicle gross profit rose 34.4% to $700 million, wholesale gross profit advanced 19.7% to $158 million and other gross profit grew 28.0% to $526 million.
However, total gross profit per unit fell $412 to $7,014, and non-GAAP GPU declined $455 to $7,125. On a sequential basis, total gross profit and non-GAAP GPU improved by $231 and $214, respectively.
CVNA’s Margins Reflect Growth Investments
Operating income increased to $680 million from $511 million, but adjusted EBITDA margin contracted to 10.4% from 12.4%. Adjusted EBITDA rose to $769 million from $601 million, showing strong dollar profit growth even as the margin narrowed.
Net income advanced 66.6% to $513 million. Selling, general and administrative expenses increased to $704 million from $551 million as advertising, logistics and other costs rose.
Carvana Expands Production Capacity
Inventory selection remains central to the company’s growth plan. Carvana integrated retail production capabilities at three additional ADESA sites during the quarter, bringing the total to 19, and began construction on its first full buildout at an ADESA location.
The current footprint provides fully built-out annual capacity for about 1.5 million retail units, with additional real estate available for expansion. The new full buildout is expected to begin producing vehicles in early 2027.
CVNA Builds Cash and Liquidity
Cash and cash equivalents totaled $2.63 billion as of June 30, 2026, up from $2.32 billion at year-end 2025. Committed liquidity resources were $4.67 billion, while total liquidity resources increased to $7 billion from $6.74 billion. For the first six months of 2026, net cash provided by operating activities rose to $345 million from $261 million.
Carvana Sets Full-Year EBITDA Outlook
For the third quarter, management expects retail units sold to increase sequentially from the second quarter. For full-year 2026, Carvana projects adjusted EBITDA of $2.7-$3 billion, compared with $2.24 billion in 2025. It also reiterated its long-term path toward selling 3 million vehicles annually and achieving a 13.5% adjusted EBITDA margin between 2030 and 2035.
Key Releases From the Auto Space
General Motors GM reported second-quarter 2026 adjusted earnings of $3.57 per share, up 41.3% year over year. The figure beat the Zacks Consensus Estimate of $3.13 by 14.06%. Revenues increased 1.9% to $48.03 billion and surpassed the consensus estimate of $46.56 billion by 3.15%. General Motors raised its full-year adjusted EBIT guidance to $14-$16 billion from $13.5-$15.5 billion. Adjusted earnings are now projected at $12-$14 per share, up from the prior range of $11.50-$13.50.
Tesla, Inc. TSLA reported second-quarter 2026 adjusted earnings of 33 cents per share, which declined 17.5% year over year. The figure missed the Zacks Consensus Estimate of 50 cents by 34%. Revenues advanced 25.5% to $28.24 billion and surpassed the consensus estimate of $25.81 billion by 9.41%. Tesla expects 2026 capital expenditures to exceed $25 billion and rise further over the next two to three years.
Ford F reported second-quarter 2026 adjusted earnings of 42 cents per share, beating the Zacks Consensus Estimate of 33 cents by 27.27%. Earnings rose 13.5% from 37 cents a year ago. Automotive revenues of $44.89 billion fell 4.4% year over year and missed the consensus mark of $45.72 billion by 1.81%. Ford’s consolidated second-quarter revenues came in at $48.3 billion, down 3.7% year over year. The company raised its full-year adjusted EBIT outlook to $10-$11 billion from $8.5-$10.5 billion.
Research Chief Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Carvana Co. (CVNA) : Free Stock Analysis Report
Ford Motor Company (F) : Free Stock Analysis Report
General Motors Company (GM) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.