Hertz Global Holdings shares jumped 12.4% today to about US$2.27, a sharp move for a stock that has been sliding over the past three months. That reaction came as Hertz posted a return to quarterly profit, with Q2 basic earnings per share of US$0.20 and net income of US$64 million on US$2.4b of revenue.

The headline this quarter is simple. A deeply troubled rental car operator that has been losing money over the past year just reported a profitable quarter and topped its own recent guidance. The rest of the earnings will indicate how durable that shift appears.

Impressed by Hertz Global Holdings swinging back to profit, but unsure how sustainable a turnaround like this can be? Check out list of solid balance sheet and fundamentals stocks (49 results) to compare Hertz with companies that pair stronger balance sheets with consistent fundamentals.

Q2 2026 Earnings Summary

• Revenue Q2 2026 vs Q2 2025: US$2,396 million vs. US$2,185 million (up 9.6%)
• Net Income Q2 2026 vs Q2 2025: profit of US$64 million vs. loss of US$294 million (swing to profit)
• Basic EPS Q2 2026 vs Q2 2025: US$0.20 vs. a loss of US$0.95 per share (swing to profit)
• Trailing Twelve Month Net Income to Q2 2026 vs Q2 2025: loss of US$279 million vs. loss of US$2,548 million (smaller loss)

Tired of scrolling through walls of earnings figures and balance sheet line items for Hertz Global Holdings? Get a clear visual view of the company’s valuation story in the full company report for Hertz Global Holdings.

Hertz bull case gets proof points, with caveats

Bulls argue Hertz can turn a younger fleet, better pricing tools and digital partnerships into structurally higher earnings. Q2 offers some real progress. Revenue grew 10% year on year on a 1% smaller fleet, so Hertz earned more from fewer cars. RPD rose 9% and RPU climbed 8%, helped by 200 consecutive days of higher RPD and 12% growth at U.S. airports. Net DPU held around the US$300 target despite weaker gains on sale, which supports the idea that depreciation is now more controlled. Adjusted corporate EBITDA of US$81 million topped guidance and came even with heavy recall headwinds. Liquidity sits around US$1b, roughly in line with guidance. The company still needs scale to reach the US$1b EBITDA ambition for 2027, but the core bullish claim that better execution can offset mobility headwinds now has concrete operational evidence.

Hertz bear case still live despite profit swing

Bears focus on structural demand risk, high leverage, capital structure complexity and fragile used car economics. Q2 does not fully disprove that view. Hertz needed a US$350 million exchangeable note and prior US$400 million capital raise to keep liquidity at roughly US$1b. That supports the concern that the balance sheet is tight. Legal overhang from securities class actions and scrutiny of the capital raise keeps reputational and headline risk elevated. Recall volume was up about 300% year on year, removing roughly US$55 million of revenue and US$30 million of EBITDA in a single quarter. That shows how exposed earnings remain to operational shocks. Gains on sale were pressured by weaker wholesale conditions and less favourable channels, which echoes worries about residual values. The stock is still heavily shorted and highly volatile, so the squeeze driven 12% price jump does not yet refute the longer term bear narrative.

Track how Hertz Global Holdings’ operational progress compares with institutional expectations by checking whether recent profit, fleet efficiency and pricing gains align with analyst sentiment. See the consensus price target analysis for Hertz Global Holdings.

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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.