Carvana Stock Jumps 9%: Record $8.04 Billion Quarter, 217,385 Cars Sold

Carvana stock jumped about 9% in after-hours trading on Wednesday, October 28, 2026, after the online used-car retailer reported record third-quarter revenue of $8.04 billion, up 42% year over year, and sold 217,385 retail vehicles — its first quarter ever above 200,000. The revenue beat mattered more to traders than a small per-share profit miss.

What happened

Carvana reported results for the quarter ended September 30, 2026, after the closing bell. Revenue rose 42% to a record $8.04 billion, ahead of the roughly $7.67 billion to $7.71 billion analysts expected. Retail units sold climbed 39% to 217,385, up from 155,941 a year earlier, and also ahead of analyst estimates near 211,000.

Profitability set records too, with one caveat. The company highlighted net income of $483 million, a net income margin of 6.0%, up from 4.7% a year earlier, and record adjusted EBITDA of $800 million. Per-share profit, however, came in at $0.39, below the $0.44 that analysts polled by FactSet had expected. In other words, Carvana sold far more cars than expected, but each share earned a little less than Wall Street had pencilled in.

Why it's blowing up

Scale is the story. Chief executive Ernie Garcia said Carvana has doubled the number of customers it serves in just two years, with eight straight quarters of growth in roughly the same 40% range — in an industry management described as approximately flat in the quarter. That contrast is why the stock reacted so strongly: the growth is coming from market-share gains, not from a rising tide lifting every car dealer.

The setting made the move bigger. Carvana shares were down about 30% so far this year heading into the print and slipped slightly in regular trading on Wednesday, so expectations were not euphoric. A clean revenue beat, a first-ever 200,000-plus unit quarter and a stronger profit outlook gave buyers who had stayed on the sidelines a concrete reason to come back in after hours — reports put the early extended-trading gain at about 8% to 9%.

Key facts

Revenue: $8.04 billion, up 42% year over year, beating consensus near $7.67 billion to $7.71 billion.

Retail units: 217,385 sold, up 39% year over year — the first quarter in company history above 200,000.

Profit: Net income highlighted at $483 million with a 6.0% margin; adjusted EBITDA hit a record $800 million, though its margin eased to 10.0% from 11.3% a year earlier. Earnings per share of $0.39 missed the $0.44 FactSet consensus.

Unit economics: Total gross profit per retail unit was $6,997, ahead of analyst estimates around $6,876, even as the adjusted EBITDA margin narrowed — a mix shift toward higher-priced vehicles and lower loan rates for customers was cited on the call.

Outlook: For the fourth quarter, Carvana expects a sequential increase in retail units sold, and it now expects full-year 2026 adjusted EBITDA at the higher end of its previously communicated $2.7 billion to $3.0 billion range, assuming the environment stays stable.

The change buried in the report

Carvana also announced a reporting shift that will change how future quarters look. Starting with its fourth-quarter earnings call, the company does not plan to provide quarterly or annual financial outlooks, focusing instead on longer-term goals. In 2027 it plans to move from non-GAAP reporting toward GAAP measures such as operating income and net income, and it recast its long-term ambition as selling 3 million retail units a year at a 12.5% operating margin sometime between 2030 and 2035. Finance chief Mark Jenkins called the change a natural step as the company becomes more profitable on a GAAP basis.

What's next

The next test is the holiday quarter: can unit sales rise again sequentially, as guided, without margins slipping further? Investors will also watch whether the after-hours gain holds in Thursday's regular session, after a year in which the stock had fallen sharply despite rapid growth. This report does not settle the valuation debate — it simply shows a retailer still taking share at a pace its industry is not matching. That is information, not a recommendation to buy, sell or hold any security.

Sources

The Wall Street Journal — Carvana profit climbs as vehicle sales rise nearly 40%
Barron's — Carvana reaches a sales milestone, earnings come in short
Carvana — Record third quarter 2026 results announcement
Zacks — Carvana Q3 earnings versus estimates, key metrics
The Dealership Guy — Carvana tops 200,000 units for the first time

FAQ

Why did Carvana stock jump after hours?

Revenue of $8.04 billion beat expectations near $7.7 billion, retail sales hit a record 217,385 vehicles, and management guided full-year adjusted EBITDA to the higher end of its range.

Did Carvana beat earnings estimates?

On revenue, yes. On per-share profit, no — earnings of $0.39 a share missed the $0.44 FactSet consensus, even as net income and adjusted EBITDA set records.

How many cars did Carvana sell in Q3 2026?

It sold 217,385 retail units, up 39% year over year and its first quarter ever above 200,000, plus 111,119 wholesale units.

What did Carvana guide for Q4 and the full year?

It expects retail units to increase sequentially in Q4 and full-year 2026 adjusted EBITDA at the higher end of its $2.7 billion to $3.0 billion range, if conditions stay stable.