Earnings beat and partnerships put Hertz Global Holdings (HTZ) in focus

Hertz Global Holdings (HTZ) is back on investors’ radar after first quarter earnings revenue came in ahead of expectations, paired with reduced net losses and a cluster of new partnership announcements.

For the quarter ended March 31, 2026, Hertz reported sales of US$2,004 million compared with US$1,813 million a year earlier. The company recorded a net loss of US$333 million, narrower than the US$443 million loss in the prior year period.

Basic and diluted loss per share from continuing operations were both US$1.06, compared with US$1.44 a year ago. Management attributed the quarter to commercial execution and structural improvements within the business.

Hertz’s share price has reflected mixed sentiment, with a 1-day share price return of 2.61% after the earnings and partnership news, set against a 7-day share price return that is down 8.95%, a 30-day share price return that is down 10.74%, a 90-day share price return of 15.23% and a year to date share price return of 13.03%. The 1-year total shareholder return is 0.85% and the 3-year total shareholder return is down 63.91%, suggesting recent momentum is improving from a weak longer term base.

If Hertz’s recent moves have you thinking about where else growth and risk are shifting in transport and mobility, it could be worth scanning 20 top founder-led companies

With revenue ahead of expectations, losses narrowing and a string of new partnerships across Aeroplan, Uber, eBay and The Home Depot, is Hertz’s low share price signaling an undervalued turnaround, or are markets already pricing in future growth?

Most Popular Narrative: 74.2% Undervalued

Hertz closed at $5.90, while the most followed narrative on the stock assigns a fair value of $22.85, framing the current price as deeply discounted.

Hertz is no longer a recovery trade. It is an execution story shaped by discipline, pricing, and operational control. As travel behavior becomes more intentional and cost-aware, rental cars regain relevance as a flexible, practical solution.

The narrative, according to yiannisz, leans heavily on how future revenue, margins and cash generation might reset once fleet discipline and pricing fully flow through. Want to see which long term profitability assumptions and valuation multiples sit behind that $22.85 figure, and how they connect to a discount rate that reflects Hertz’s risk profile.

Result: Fair Value of $22.85 (UNDERVALUED)

However, investors still need to weigh risks such as ongoing net losses and debt sensitivity, especially if travel demand or used vehicle pricing weakens from here.

Another angle on value: DCF sends a very different signal

While the user narrative points to a fair value of $22.85, our DCF model points in the opposite direction, with an estimated future cash flow value of $0 against a share price of $5.90. That gap suggests investors need to think hard about which assumptions they trust most.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Hertz Global Holdings for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 46 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

The split between risks and rewards in this story is clear, so consider acting promptly, review the data for yourself, and weigh up the 1 key reward and 4 important warning signs with 1 key reward and 4 important warning signs

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.