Hertz Stock Plunges 23%, Wiping Out $185 Million, After Profit Falls And Costs Climb
The car-renter posted its best quarterly revenue in three years, but net income fell to $116 million and 2027 guidance came in wide.
Hertz, which rents cars under the Hertz, Dollar and Thrifty brands, saw its shares plunge 23.01% to $1.74 in Thursday trading, as of 2:11 p.m. ET, erasing $185 million in market value. The drop came on the day it reported third-quarter net income of $116 million, down from $184 million a year earlier, as higher collision and maintenance costs weighed on results.
Revenue up, profit down
Quarterly revenue of $2.6 billion grew 5.6% from a year earlier, the company reported. Adjusted EPS held at $0.14, while GAAP earnings sank.
Higher collision and maintenance spending weighed on profit, the company said, with direct operating expense per day up 6% from a year earlier. Adjusted corporate EBITDA, a profit measure that strips out certain items, was $233 million for the quarter, which the company said was its best in three years.
A wide range for 2027
On the earnings call, management projected 2027 adjusted corporate EBITDA of between $500 million and $800 million. It also said it expects to end 2026 with about $800 million in liquidity.
The stock was on pace in Thursday trading for its biggest one-day drop since June 24, when it fell 40.7%.
A stock already down 56%
Hertz shares were down about 56% year to date at Wednesday's close, badly trailing the S&P 500, which was up about 12% over the same span. The stock had still risen 28% over the previous month, yet sat 71% below its highest close of the past year, set on April 20.
Hertz rents cars and other vehicles to business and leisure travelers, insurance-replacement renters and ride share drivers. It also sells used cars and earns fees from franchisees. As of December 31, 2025, it operated from about 11,000 company-operated and franchisee locations in roughly 160 countries and jurisdictions.
Hertz's market value stood at $620 million in Thursday trading, after a 56% slide this year through Wednesday's close.
Sources
- Hertz Stock Hits a Speed Bump: Revenue Reaches Three-Year High, but EPS Misses Estimates — benzinga.com
- Las acciones de Hertz caen mientras los costos de colisión y mantenimiento afectan los resultados del tercer trimestre. — es.qz.com
- Hertz Global Holdings Q3 2026 Earnings Call Transcript — benzinga.com
- Hertz Global Holdings, Inc. (HTZ) Lags Q3 Earnings Estimates — Yahoo Finance
- Hertz (NASDAQ:HTZ) reports Q3 2026 in line with expectations but stock drops — Yahoo Finance
- The company's filing (Hertz Global Holdings) — SEC filing
- Compared to Estimates, Hertz Global (HTZ) Q3 Earnings: A Look at Key Metrics — Zacks Investment Research
- Matson (MATX) Tops Q3 Earnings and Revenue Estimates — Zacks Investment Research
- Hertz Global Holdings — Form 10-Q for the quarter ended 2026-09-30 (quarterly results) — SEC EDGAR
