Carvana posts record revenue of $8.040 billion as sales grow 39%

Key Facts

Carvana reported record results on October 28 for the third quarter ended September 30, 2026, selling 217,385 retail units and generating revenue of $8.040 billion, up 39% and 42% year over year, respectively. The company said both figures were quarterly records, with sales expanding alongside revenue. Revenue exceeded analysts’ estimates of $7.67 billion, but adjusted EPS came in at $0.39, below the expected $0.44. After closing at $59.05 in the regular session, the stock rose 8.13% to $63.85 in extended trading following the results. The figures put strong business growth alongside a divergence between revenue and EPS, as well as pressure on gross profit per unit.

Net income was $483 million, with a 6.0% margin, while generally accepted accounting principles operating income was $714 million, with a margin of 8.9%. Adjusted earnings before interest, taxes, depreciation and amortization also reached a record $800 million, with a 10.0% margin. For comparison, net income in the third quarter of 2025 was about $263 million, with a 4.7% margin. In the same period last year, adjusted earnings before interest, taxes, depreciation and amortization were $637 million, with an 11.3% margin. Net income therefore rose year over year, while the adjusted earnings margin fell from the previous year, despite a record amount for the metric in the latest quarter.

Generally accepted accounting principles gross profit per retail unit fell to $6,997 in the third quarter, from $7,362 a year earlier. On a non-GAAP basis, the measure was $7,093, compared with $7,503 in the year-earlier period. Company data show that accounting-basis retail profit per unit was $3,556, up from $3,456 a year earlier. By contrast, other-business profit per unit fell to $2,733 from $3,040. The differing directions of these two components show how retail profit per unit rose while other-business profit declined, alongside a drop in total gross profit per unit.

Chief Executive Ernie Garcia said the company had doubled the number of customers it serves over the past two years. He added that Carvana offers customers twice the vehicle selection, along with faster delivery and lower interest rates on their loans. Garcia linked this to an expanding customer base as the company continues to focus on unit economics and making more value available to buyers. He said: "Over the past two years, we have doubled the number of customers we serve, while continuing to offer twice the selection, faster delivery and lower interest rates on their loans." The remarks provide context for the expansion in retail sales, which reached a quarterly record in the third quarter, without changing the year-over-year decline in gross profit per unit.

In a move following the results announcement, BTIG on October 29 cut its price target on Carvana to $82 from $87, while maintaining its Buy rating. The firm attributed the decision to a more challenging macroeconomic environment. The revision came after the stock closed at $59.05 in the regular session on October 28, then rose in extended trading following the results announcement. The change did not alter BTIG’s Buy rating, which it maintained, while lowering its price target from its previous estimate. The move highlights the continued assessment of the stock amid the economic environment, alongside the market’s immediate response to the quarterly figures.

Carvana expects retail units sold to increase sequentially in the fourth quarter, provided the environment remains stable. It also expects adjusted earnings before interest, taxes, depreciation and amortization for 2026 to come in at the high end of its previous range of $2.7 billion to $3.0 billion. The company did not announce a new range, but indicated that it expects to reach the high end of its prior estimate. Its statement ties these expectations to stable conditions, with the fourth quarter the next period in the trajectory of retail-unit growth. The announced annual range remains the reference the company gave for its outlook for the year.