CVNA Stock On Track For Worst Day In 6 Months After 2026 Guidance Disappoints — But Wall Street Deems Near-Term Profitability Pressure Temporary

• Full-year 2026 adjusted core profit guidance of $2.7 billion to $3 billion disappointed investors. 
• Citizens highlighted Carvana’s strong unit expansion and execution as evidence of durable structural growth, viewing any near-term EBITDA pressure as temporary.
• RBC Capital sees Carvana on a sometimes uneven but reliable path toward millions of annual units at above-market profitability.

Shares of Carvana Co. (CVNA) fell 11% on Thursday, extending losses from after-hours trading on Wednesday, following the online used-car retailer’s second-quarter results, where investors focused on the company’s full-year outlook rather than its strong operational performance.

The stock is now on track to clock its worst day since late January, if losses hold.

Outlook Overshadows Record Results

Carvana reported record second-quarter figures on Wednesday, with revenue climbing 52% year-over-year to $7.38 billion. Retail units sold reached 197,325, up nearly 38%, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at a record $769 million, equating to an industry-leading 10.4% margin. Gross profit per unit sold, however, came in at $7,014, down $412 year-over-year but up $231 sequentially.

Management noted that sequential growth is expected in retail sales in the third quarter.

However, the full-year 2026 adjusted core profit guidance of $2.7 billion to $3 billion disappointed. The midpoint sat below many Wall Street forecasts that had clustered near or above $3 billion, prompting the selloff even as quarterly metrics largely met or exceeded estimates.

Wall Street Weighs In

Several firms cut price targets on CVNA while reaffirming constructive ratings on Thursday, emphasizing that near-term softness does not alter the longer-term growth narrative.

Citizens reduced its target to $83 from $103 and maintained an Outperform rating. The firm highlighted Carvana’s robust unit expansion and execution as evidence of durable structural growth, viewing any near-term core profit pressure as temporary. Analysts there said they remain buyers, particularly on weakness.

Wells Fargo lowered its target to $80 from $85 while keeping an Overweight stance. Near-term hurdles persist, it said, yet market-share gains remain solid and the longer-term opportunity intact.

BTIG’s Marvin Fong cut his target to $87 from $97 and retained a Buy rating. Unit metrics and adjusted core profit edged ahead of consensus, he noted, but full-year guidance—while bracketing estimates—landed below expectations at the midpoint. In a cautious market, such an outlook is unlikely to be rewarded, Fong wrote.

RBC Capital adjusted its target to $82 from $85 and kept an Outperform rating. The quarter mixed solid unit growth against a gross profit per unit miss and a softer implied margin outlook. Still, the firm sees Carvana on a sometimes uneven but reliable path toward millions of annual units at above-market profitability, even as investor skepticism lingers.

How Did CVNA Retail Traders React?

On Stocktwits, retail sentiment around CVNA stock fell from ‘bullish’ to ‘bearish’ territory over the past 24 hours, while message volume improved from ‘normal’ to ‘extremely high’ levels. 

A Stocktwits user expressed optimism about Carvana’s business.

Another posed doubts that Carvana's high stock market value is sustainable if its growth and profits lean so much on lending to people who already have tight budgets.

CVNA stock has fallen 30% year-to-date. 

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