Abstract
Hertz Global Holdings, Inc. will report its quarterly results on February 26, 2026 Pre-Market.
Market Forecast
For the current quarter, total revenue is projected at $2.00 billion with a year-over-year decline of 5.48%, adjusted EPS is forecast at -$0.52 with a year-over-year increase of 27.40%, and EBIT is estimated at $30.51 million with an implied year-over-year increase of 172.11%. A formal guidance range for gross profit margin and net profit margin was not disclosed, but consensus points to softer revenue against improving profitability metrics. The core vehicle rental business remains the centerpiece, while variable operating leasing and Topic 606 adjustments are smaller contributors; the most promising segment is the vehicle rental unit, expected to benefit from ongoing fleet mix normalization and pricing discipline even as revenue growth moderates.
Last Quarter Review
In the previous quarter, Hertz Global Holdings, Inc. posted revenue of $2.48 billion, a gross profit margin of 24.21%, GAAP net profit attributable to the parent company of $184.00 million with a quarter-on-quarter growth rate of 162.59%, a net profit margin of 7.43%, and adjusted EPS of $0.12 with a year-over-year increase of 117.65%. A notable highlight was the stronger-than-expected revenue performance, exceeding the $2.40 billion estimate by $78.03 million, while the main business mix was dominated by vehicle rental at $2.23 billion, followed by variable operating leasing at $170.00 million and Topic 606 adjustments at $76.00 million.
Current Quarter Outlook
Core Vehicle Rental
Vehicle rental remains the company’s principal revenue engine and the most visible driver for near-term stock performance. The top line is projected to soften to $2.00 billion from $2.48 billion last quarter, with the year-over-year decline of 5.48% reflecting lingering demand normalization after a strong travel recovery phase and a recalibration of pricing to align with competitive dynamics. Despite the lower revenue outlook, prior-quarter margin levels near 24.21% suggest capacity to defend gross profitability through better asset utilization, tighter fleet rotation, and reduced depreciation per unit as the fleet composition shifts. Investor focus will be on management’s commentary regarding fleet size, average daily rate, and utilization; incremental signs of stabilization across airport and local markets could support a more balanced revenue trajectory into the next quarter.
Variable Operating Leasing
The variable operating leasing business is smaller in scale but important for asset flexibility and demand smoothing. Last quarter’s $170.00 million contribution underscores how this segment can absorb volatility in rental demand by repositioning vehicles under different contract structures and terms. If management continues to optimize lease durations and improve return profiles, this segment can serve as a margin buffer during periods of softer rental volumes. The revenue share is not expected to expand materially in the current quarter, yet operational improvements—such as streamlined remarketing and enhanced residual value management—may help limit downside pressures on consolidated profitability.
Factors Most Impacting the Stock This Quarter
The first factor is the revenue cadence and pricing resilience, with a forecast decline to $2.00 billion testing investor confidence in demand durability across leisure and corporate channels. The second factor is margin quality, where last quarter’s 24.21% gross profit margin and 7.43% net profit margin set a baseline; any commentary pointing to reduced vehicle depreciation, improved utilization, or lower maintenance costs could signal sustained profitability despite softer sales. The third factor is earnings leverage, with EBIT projected at $30.51 million and adjusted EPS at -$0.52; investors will examine whether cost actions and fleet optimization can bridge the gap to positive EPS in subsequent quarters, aided by a more favorable mix and normalization of operating expenses.
Analyst Opinions
Market views collected over the recent period indicate a mixed stance, with a cautious tilt driven by the revenue decline forecast and an expected adjusted EPS loss for the quarter. Several institutional previews emphasize that the projected $2.00 billion in revenue, down 5.48% year over year, aligns with a phase of demand normalization and fleet mix recalibration; the anticipated -$0.52 EPS suggests ongoing transitional costs as pricing and utilization settle. The constructive side of the consensus points to improving EBIT growth trends—172.11% year-over-year—and the last quarter’s stronger-than-expected revenue performance with stable gross margin, suggesting operational momentum that could translate into margin support even as sales moderate. The balance of opinions leans toward a watchful, neutral-to-cautious posture, with emphasis on management’s commentary around fleet optimization, average daily rates, and utilization metrics as catalysts for sentiment re-rating in the coming quarters.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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