Hertz Global Holdings (HTZ) opened 2026 with Q1 revenue of US$2.0 billion and a basic EPS loss of US$1.06, as net income excluding extra items came in at a loss of US$333 million. Over the last six reported quarters, revenue has moved between US$1.8 billion and US$2.5 billion while basic EPS has swung from a loss of US$1.56 in Q4 2024 to a profit of US$0.59 in Q3 2025 and back to a loss of US$1.06 in the latest quarter. This underscores how quickly earnings can flip for this business. Analysts are pointing to potential earnings growth and a path back to profitability, so the key question for you is how much of this volatility is already reflected in margins and what that could mean for the company’s trajectory.

See our full analysis for Hertz Global Holdings.

With the latest numbers on the table, the next step is to see how they line up with the widely followed bull and bear narratives around Hertz, and where those storylines might need a rethink.

Losses Persist On Trailing US$8.7b In Revenue

• On a trailing twelve month basis to Q1 2026, Hertz generated about US$8.7b of revenue and still recorded a net loss of US$637 million, with basic EPS at a loss of US$2.04.
• Consensus narrative expects profit margins to move from a loss of 8.8% today to 5.0% in three years, yet the current US$637 million loss and six out of the last six quarters in the red show that the business is still some distance from that outcome, which challenges how quickly the balanced view expects margins to reset.
  • Over those six quarters, net income excluding extra items ranged from a loss of US$479 million to a profit of US$184 million, so profitability has been brief compared with the frequency of losses.
  • Analysts looking for earnings of US$465.4 million by around 2029 are starting from a base where trailing losses have grown at about 30.4% per year over five years, so the turnaround implied is very large relative to recent history.

Low 0.2x P/S Versus Loss Trend

• The stock trades on a P/S of about 0.2x, compared with 1.3x for the US transportation industry and a peer average of 5.3x, while trailing twelve month net income is still a loss of US$637 million.
• Bulls argue that this low multiple underrates future earnings power, yet the combination of modest forecast revenue growth of 3.5% per year and current unprofitability means the discount could also be reflecting business risk rather than just an overlooked opportunity.
  • Even the more optimistic forecasts call for earnings to move from a loss of US$747 million today to US$649.1 million of profit by around 2029, which assumes a swing of roughly US$1.4b in earnings against a relatively modest revenue growth profile.
  • With analysts expecting a P/E of 3.9x on US$465.4 million of earnings to support a US$4.43 analyst price target, the current share price of US$6.17 already sits above that target, so anyone leaning on the bullish narrative needs to be comfortable that the market will support very low P/E ratios on future earnings.

Have a closer look at how bullish investors are framing that potential earnings swing and what would need to go right for it to play out 🐂 Hertz Global Holdings Bull Case.

Short Cash Runway And Negative Equity

• Risk data flags less than one year of cash runway and negative shareholders' equity, on top of trailing twelve month losses of US$637 million, which together point to meaningful reliance on future financing or improved cash generation.
• Bears highlight that high leverage and balance sheet strain could weigh on long term value, and the combination of negative equity, a short cash runway and a volatile share price over the past three months supports that cautious view rather than contradicting it.
  • The company is still unprofitable on a trailing basis and has seen losses grow at roughly 30.4% per year over five years, so balance sheet repair is starting from a weak earnings base.
  • Analysts who project strong earnings growth and profitability within three years are effectively assuming that these balance sheet pressures can be handled along the way, which is not yet evident in the reported numbers.

Skeptical investors often start with the balance sheet, and Hertz's short runway and negative equity give plenty of material for that cautious case 🐻 Hertz Global Holdings Bear Case.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Hertz Global Holdings on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With both concerns and reasons for optimism on the table, it helps to see the full context before forming a view. If you want to quickly balance the potential upside against the key pressures that others are watching, start by reviewing the 2 key rewards and 3 important warning signs.

See What Else Is Out There

Hertz is still contending with recurring losses, negative equity and a short cash runway, so its balance sheet leaves little margin for error.

If that level of pressure feels uncomfortable, you can quickly compare it with companies screened for stronger financial footing by checking the solid balance sheet and fundamentals stocks screener (45 results) today.

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.