What is Zacks Research’s Forecast for Carvana Q1 Earnings?

Carvana Co. (NYSE:CVNA) – Equities researchers at Zacks Research cut their Q1 2026 earnings per share (EPS) estimates for shares of Carvana in a report issued on Wednesday, March 4th. Zacks Research analyst Team now expects that the company will earn $1.26 per share for the quarter, down from their prior forecast of $1.96. The consensus estimate for Carvana’s current full-year earnings is $2.85 per share. Zacks Research also issued estimates for Carvana’s Q3 2026 earnings at $1.58 EPS, Q4 2026 earnings at $1.58 EPS, FY2026 earnings at $6.23 EPS, Q1 2027 earnings at $2.01 EPS, Q2 2027 earnings at $2.55 EPS and FY2027 earnings at $9.43 EPS.

Several other equities research analysts also recently weighed in on CVNA. JPMorgan Chase & Co. dropped their target price on shares of Carvana from $510.00 to $490.00 and set an “overweight” rating for the company in a research report on Thursday, February 19th. Wedbush decreased their price target on Carvana from $500.00 to $425.00 and set an “outperform” rating for the company in a research note on Thursday, February 19th. Needham & Company LLC reissued a “buy” rating and issued a $500.00 price objective on shares of Carvana in a report on Thursday, February 19th. Morgan Stanley restated an “overweight” rating on shares of Carvana in a research note on Thursday, January 8th. Finally, UBS Group set a $485.00 target price on Carvana in a report on Friday, February 20th. One investment analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $440.59.

Carvana Trading Down 4.1%

NYSE CVNA opened at $317.69 on Monday. The company has a market capitalization of $69.53 billion, a price-to-earnings ratio of 39.51 and a beta of 3.60. The company has a debt-to-equity ratio of 1.15, a current ratio of 4.31 and a quick ratio of 2.73. Carvana has a 12 month low of $148.25 and a 12 month high of $486.89. The company’s fifty day moving average price is $399.42 and its two-hundred day moving average price is $380.56.

Carvana (NYSE:CVNA) last released its quarterly earnings results on Wednesday, February 18th. The company reported $4.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.10 by $3.12. The business had revenue of $5.60 billion during the quarter, compared to the consensus estimate of $5.24 billion. Carvana had a net margin of 6.92% and a return on equity of 50.96%. The business’s quarterly revenue was up 58.0% compared to the same quarter last year. During the same quarter last year, the company earned $0.56 earnings per share.

Hedge Funds Weigh In On Carvana

Several institutional investors have recently modified their holdings of CVNA. Vanguard Group Inc. lifted its position in Carvana by 24.7% in the 4th quarter. Vanguard Group Inc. now owns 16,783,101 shares of the company’s stock valued at $7,082,804,000 after purchasing an additional 3,328,115 shares during the last quarter. State Street Corp grew its position in Carvana by 93.7% in the 4th quarter. State Street Corp now owns 5,714,779 shares of the company’s stock worth $2,411,751,000 after purchasing an additional 2,764,759 shares during the last quarter. Capital Research Global Investors increased its stake in shares of Carvana by 42.9% in the fourth quarter. Capital Research Global Investors now owns 5,700,953 shares of the company’s stock valued at $2,405,959,000 after purchasing an additional 1,711,144 shares during the period. Price T Rowe Associates Inc. MD increased its stake in shares of Carvana by 8.6% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 17,726,838 shares of the company’s stock valued at $7,481,081,000 after purchasing an additional 1,407,762 shares during the period. Finally, Geode Capital Management LLC raised its holdings in shares of Carvana by 55.4% during the fourth quarter. Geode Capital Management LLC now owns 3,880,711 shares of the company’s stock valued at $1,632,763,000 after buying an additional 1,382,852 shares during the last quarter. Institutional investors own 56.71% of the company’s stock.

Insiders Place Their Bets

In related news, VP Stephen R. Palmer sold 1,000 shares of the business’s stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $393.04, for a total transaction of $393,040.00. Following the completion of the transaction, the vice president owned 37,192 shares in the company, valued at $14,617,943.68. The trade was a 2.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Thomas Taira sold 1,047 shares of the company’s stock in a transaction on Monday, February 9th. The stock was sold at an average price of $398.54, for a total value of $417,271.38. Following the transaction, the insider owned 66,625 shares of the company’s stock, valued at approximately $26,552,727.50. The trade was a 1.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 129,721 shares of company stock worth $58,264,697. 16.36% of the stock is currently owned by insiders.

More Carvana News

Here are the key news stories impacting Carvana this week:

• Positive Sentiment: Zacks says Carvana has a clear path to a 13.5% adjusted EBITDA margin over time as fixed‑cost leverage and operational efficiencies scale (Q4 dipped to 9.1%). Will Carvana’s Fixed Cost Leverage Drive Its EBITDA Margin?
• Positive Sentiment: Zacks highlights Carvana’s push toward vertical integration (in‑house reconditioning, logistics, financing) as a structural margin tailwind and notes strong customer referrals that could support market‑share gains. Will Vertical Integration Strengthen Carvana’s Prospects?
• Positive Sentiment: Wholesale used‑vehicle prices (Manheim index) rose year‑over‑year in February, which can support retail pricing and gross profit per unit as the spring selling season begins. Used vehicle prices jump ahead of spring selling season optimism
• Neutral Sentiment: Industry and analyst sentiment remains generally constructive: Carvana has a consensus rating around “Moderate Buy,” reflecting mixed analyst views on near‑term execution vs. long‑term opportunity. Carvana Receives Consensus Rating
• Negative Sentiment: Retail GPU fell in Q4 (roughly a $255 decline), and rising reconditioning and logistics costs pressured margins; management says automation/scale should help, but near‑term recovery is uncertain. Carvana’s GPU Declines in Q4: What Will Drive Improvement?
• Negative Sentiment: Several analysts have trimmed near‑term estimates and price targets (e.g., Citi cut its PT), and headlines flag a “rough start” to 2026—these revisions are weighing on sentiment and the stock. Carvana Stock Continues to Slide As Analysts Lower Price Targets
• Negative Sentiment: Zacks Research issued mixed estimate changes: small raises for some later periods but meaningful cuts to near‑term quarters (Q2 2026, Q3 2027), underscoring uncertainty over short‑term profitability.

Carvana Company Profile

Carvana Co is an online-only retailer of used vehicles that operates a consumer-facing e-commerce platform for buying and selling cars. The company markets and sells inspected, reconditioned pre-owned vehicles through its website, where shoppers can browse inventory, view detailed 360-degree photos and vehicle history reports, finance purchases, and arrange delivery or pickup. Carvana’s model is built around a digital end-to-end car buying experience that aims to simplify vehicle transactions compared with traditional dealerships.

Its products and services include direct retail sales of used cars, trade-in and purchase offers for consumer vehicles, vehicle financing and related protection products, and a seven-day return policy that allows customers to test a vehicle in everyday use.