Carvana Co. (NYSE:CVNA) reported first quarter financial results that topped Wall Street expectations on both revenue and earnings, supported by strong growth in retail vehicle sales and record profitability.
The company posted earnings per share of $1.69, ahead of analyst estimates of $1.52.
Revenue rose 52% year over year to $6.43 billion, also exceeding expectations of $6.08 billion.
Carvana sold 187,393 retail units during the quarter, up 40% year over year and marking a new quarterly record.
Net income reached a record $405 million, with a net income margin of 6.3%.
Adjusted EBITDA also set a record at $672 million, representing a 10.4% margin. GAAP operating income totaled $581 million.
“We are proud to be changing the way people buy and sell cars and look forward to continuing to raise the bar for our customers as we grow and improve from here,” Carvana CEO Ernie Garcia said in a statement.
Despite the stronger-than-expected results, shares were down about 4% in early trading, reflecting a “sell the news” reaction. The stock had climbed roughly 27% in April ahead of the earnings release.
Looking ahead, Carvana said it expects sequential increases in retail units sold and Adjusted EBITDA in the second quarter of 2026, which would result in additional all-time records for both metrics, assuming stable market conditions.
Jefferies analysts wrote that the quarter “ticked all the boxes,” highlighting over 40% retail unit growth for a sixth straight quarter as reinforcing confidence in Carvana’s market share gains.
The firm noted results came in above expectations, with upside driven by stronger retail unit growth and retail gross profit per unit. It also pointed to improving sequential retail GPU trends as helping ease concerns around long-term margin durability.
Jefferies added that sequential unit growth guidance for the second quarter suggests elevated growth momentum continues, helping counter prior concerns about a potential slowdown.
The firm described Carvana as one of the more attractive secular growth stories in consumer internet and reiterated a Buy rating, citing continued share gains in the used car market and long-term scale advantages.