Why is Hertz stock crashing today?

Hertz Global Holdings' stock took a sharp dive of 23.2% on Thursday, closing at $1.74 per share. This sharp decline came after the company released its third-quarter 2026 financial results, which significantly underwhelmed Wall Street's earnings expectations. The company reported adjusted earnings per share of $0.14, much lower than the analysts' consensus estimate of $0.25, a gap of nearly 44%.

Despite a 6% year-over-year revenue increase to $2.62 billion, the company's adjusted Corporate EBITDA of $233 million and GAAP net income of $116 million both fell short of expectations. Morgan Stanley, among other Wall Street firms, responded to the disappointing results by reducing its price target on Hertz shares to $2.50 from $3, maintaining an "Equal Weight" rating.

The broader market also contributed to the stock's decline, with the Nasdaq falling more than 5%, the S&P 500 dropping 4.0%, and the Dow Jones Industrial Average declining 3.2%. The combination of a disappointing earnings miss, a lower analyst price target, a high short interest in the stock, and a risk-averse market sentiment led to Hertz shares hitting their lowest levels in months.