Carvana reports record revenue and profitability amid stock fluctuations

Carvana Co. reported its tenth consecutive quarter of record profitability and revenue. In the second quarter of fiscal year 2026, the company saw retail units increase by 38% to 197,325 and revenue rise by 52% to $7.38 billion.

Despite these growth figures, the company's stock experienced a 6.7% decline during mid-day trading on Monday, trading as low as $60.70. Analysts have provided varying outlooks; while some firms like Needham & Company LLC maintained a 'buy' rating with a $120.00 target, others like BNP Paribas Exane lowered their price target to $69.00.

Operational reports indicate that Carvana's growth is currently limited by inventory and reconditioning capacity rather than consumer demand. Management is reportedly working to expand capacity to resolve these bottlenecks.