Hertz (HTZ) Stock Rockets 20% as Q2 Earnings Crush Analyst Expectations

Key Highlights

• HTZ shares jumped over 20% in premarket Friday trading, building on the previous day’s 29.49% rally
• Second-quarter revenue reached $2.4 billion, surpassing analyst projections of $2.28 billion
• Adjusted per-share loss of 11 cents outperformed expectations for a 24-cent deficit
• Daily revenue climbed 9% compared to last year, achieving the company’s best Q2 performance ever
• Chief Executive Gil West questioned the current stock price, citing strengthening business metrics

Shares of Hertz Global (HTZ) rallied more than 20% during Friday’s premarket session, reaching $2.42, after closing Thursday’s trading with a 29.49% surge. The sharp rise followed the car rental giant’s announcement of second-quarter financial results that exceeded analyst forecasts across key metrics.

Hertz Global Holdings, Inc., HTZ

The company reported quarterly revenue of $2.4 billion, representing a 10% increase from the same period last year and beating the analyst consensus estimate of $2.28 billion. Hertz posted an adjusted per-share loss of 11 cents, significantly better than the anticipated 24-cent loss.

Adjusted corporate EBITDA totaled $81 million, substantially exceeding both Oppenheimer’s $40 million projection and the broader Street consensus of $59 million. This figure represented a $63 million improvement compared to the prior-year quarter.

Daily Revenue Hits All-Time High

The company’s revenue per day metric jumped 9% year-over-year, establishing a new second-quarter record. Revenue per unit climbed 8% to reach $1,542, a figure that surpassed management’s long-term objectives.

Management attributed approximately 6 to 7 percentage points of the RPD improvement to commercial strategies, 2 to 3 points to overall industry pricing trends, and under half a point to the FIFA World Cup impact.

Fleet utilization rates strengthened by 80 basis points to 79%, despite a 300% year-over-year surge in recall volumes that impacted roughly 15,000 vehicles monthly. The company noted that vehicle recalls reduced first-half 2026 EBITDA by over $55 million.

At U.S. airport locations, rental revenue per day surged 12% compared to last year, contributing to a second consecutive quarter of double-digit global revenue expansion.

Executive Questions Market Valuation

Chief Executive Gil West addressed the company’s stock performance directly following the earnings release. He noted that Hertz’s market capitalization had declined to approximately one-third of its level just 90 days prior, despite enhanced liquidity positions and superior operating performance.

West characterized the current stock valuation as “tough to understand” and maintained it fails to capture the company’s strengthening operational fundamentals. Following the quarterly report, Oppenheimer maintained its Perform rating, while InvestingPro indicated the shares appear overvalued at present levels.

Despite this week’s dramatic rally, the stock remains down 60% for the year-to-date period.

The company closed the second quarter with $984 million in available liquidity following the completion of a $350 million exchangeable senior secured notes transaction. Hertz carries a total debt load of $20.6 billion.

Looking ahead to the third quarter, management issued guidance for adjusted corporate EBITDA between $275 million and $325 million, while anticipating positive per-share earnings. For the full 2026 fiscal year, the company projected EBITDA in the range of $225 million to $275 million, with year-end liquidity expected between $1 billion and $1.4 billion.

Leadership anticipates EBITDA improvement exceeding $500 million during 2026, following a $1.2 billion enhancement achieved in 2025.

Management reiterated its 2027 objective of achieving $1 billion in adjusted corporate EBITDA while projecting a return to full-year GAAP profitability coupled with positive free cash flow generation.

Additionally, Hertz disclosed that its ORO Mobility division, which operates through Uber’s platform across Atlanta, Los Angeles, San Francisco, and Northern New Jersey, is projected to produce over $600 million in revenue throughout 2026.

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