Carvana stock falls 15% as auto retailer's 2026 earnings guidance misses Wall Street's expectations

Carvana shares plunged 15% in after-hours trading Wednesday after the online auto retailer issued 2026 earnings guidance that fell short of Wall Street expectations. The company projected full-year earnings between $2.7 billion and $3 billion, disappointing analysts despite reporting record quarterly results for Q2.

The sharp selloff highlights investor sensitivity to forward guidance even as Carvana posted what it characterized as record second-quarter performance. The gap between the company's 2026 outlook and analyst estimates triggered immediate selling pressure, erasing gains that had accumulated on the strength of the quarterly beat.

Carvana's guidance miss raises questions about the sustainability of its recent momentum in a competitive used-car market. The company has been working to regain investor confidence after a tumultuous period that saw its stock collapse from pandemic-era highs before staging a partial recovery.