Avis Budget Group Q3 2026: EPS Missing Expectations Despite a Revenue Beat

Avis Budget Group reported diluted earnings per share of $5.15 for the third quarter of 2026, falling 38% short of the $8.31 consensus estimate. Net income dropped 49% year over year to $183 million, a decline that reflects both soft travel demand and the absence of a one-time benefit that padded the year-ago quarter.

The prior-year quarter included $109 million of legal-matters income that did not repeat in Q3 2026. That alone creates a difficult comparison on the bottom line. The current quarter also absorbed restructuring, transaction, cloud computing and other costs, all folded into the GAAP result.

Revenue of $3.44 billion came in above the $3.41 billion consensus, beating expectations, though it still fell 2.4% from a year earlier. Total rental days and the average rental fleet both declined as soft travel demand weighed on volume, and adjusted EBITDA slipped 8%. On the positive side, total company vehicle utilization reached 74.0%, which CEO Brian Choi described as the best Americas utilization figure in twenty years.

The Americas segment generated $2.55 billion in revenue, down 3% year over year, while the International segment contributed $884 million, down 2%. Per-unit fleet costs rose excluding foreign exchange, with the Americas segment seeing a steeper increase.

Looking beyond the quarter, a $650 million cash payment received October 5 under the Pentwater Capital Management settlement will be recognized in the fourth quarter, not Q3. The company also delivered a redemption notice on November 2 to repay the remaining $350 million of its 5.750% Senior Notes due 2027 before year end. No numeric guidance was provided for the quarters ahead.