Avis Budget Stock Skids as Its Earnings Disappoint and Demand Fell -- Barrons.com

By Anita Hamilton

Shares of car rental giant Avis sank nearly 13% in after-hours trading as both revenue and earnings per share for the second quarter came in well below analyst estimates. The company blamed shifting booking trends and weaker demand in its largest market for the shortfall.

Earnings on a generally-accepted accounting basis were 98 cents a share versus the $1.92 analysts had expected. Revenue came in at $2.998 billion, versus the $3.097 billion expected.

"The second quarter demonstrated how we are operating the business differently: as booking trends shifted, we moved quickly to resize fleet, protect utilization and returns, and deliver Adjusted EBITDA in line with our initial expectations," said Brian Choi, Avis Budget Group CEO.

"We remain focused on disciplined execution, stronger customer experiences, and building a business that can perform across different demand environments," Choi added.

The company reported 43.907 million rental days overall, 2% less than in the same period last year. On average, it brings in $67.84 per vehicle for every rental day, about the same as last year.

Both revenue and rental days in the Americas, Avis' largest market, fell by 2%. The company blamed weakened demand for the lower revenue, which fell to $2.288 billion in the Americas, down from $2.332 billion a year ago.

One area where Avis beat expectations was for its adjusted earnings before interest, taxes, depreciation, and amortization. Avis reported $286 million versus analyst estimates for $254 million among those polled by FactSet.

Its fleet costs also fell by 3% to $302 million. Avis credited a "a seasonally stronger used-car market and elevated disposition activity."

Shares fell to $145.00 after closing the regular session up 1.6% at $166.32.

Write to Anita Hamilton at anita.hamilton@barrons.com

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July 28, 2026 17:46 ET (21:46 GMT)