Why Hertz (HTZ) Is Up 23.9% After Swinging to Profit in Q3 2025 Earnings Report

• Hertz Global Holdings recently reported its third quarter 2025 earnings, revealing US$2.48 billion in sales and a return to positive net income of US$184 million after a substantial loss a year earlier.
• This marks a significant turnaround for the company, with a narrowing net loss over the nine-month period reflecting improved cost controls and operational performance.
• We'll explore how Hertz's swing to quarterly profitability influences the company's outlook amid ongoing industry shifts and competitive pressures.

These 12 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.

Hertz Global Holdings Investment Narrative Recap

To have confidence in Hertz Global Holdings as a shareholder, you must believe in the company's ability to sustain improved operational performance and navigate competitive pressures in car rentals, even as secular trends challenge the core business. The company’s sharp turnaround to profitability in the third quarter signals management’s success in cutting costs and improving margins, but with ongoing pricing pressures in the industry, the stability of these results remains a central concern and catalyst investors are watching in the short term.

Among the recent announcements, the expansion of the Hertz Rent2Buy® program to over 100 cities stands out as most relevant. This initiative complements the turnaround in quarterly profitability by offering new retail channels to sell fleet vehicles and possibly stabilize revenue, especially as the business responds to changing consumer buying patterns and seeks to strengthen resilience during periods of market volatility.

However, without sustained pricing improvements or faster top-line growth, financial flexibility could be tested if...

Read the full narrative on Hertz Global Holdings (it's free!)

Hertz Global Holdings' narrative projects $8.8 billion in revenue and $424.8 million in earnings by 2028. This requires a -0.8% yearly revenue decline and a $2.9 billion increase in earnings from current earnings of -$2.5 billion.

Uncover how Hertz Global Holdings' forecasts yield a $4.39 fair value, a 29% downside to its current price.

Exploring Other Perspectives

Six different fair value estimates from the Simply Wall St Community range widely from US$4.39 to US$11,155, reflecting major differences in outlook for Hertz Global Holdings. As you assess these viewpoints, remember that ongoing cost controls and fleet strategies continue to drive the debate on whether recent profitability can hold up against industry risks.

Explore 6 other fair value estimates on Hertz Global Holdings - why the stock might be worth 29% less than the current price!

Build Your Own Hertz Global Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Hertz Global Holdings research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Hertz Global Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Hertz Global Holdings' overall financial health at a glance.

Curious About Other Options?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality.
• Find companies with promising cash flow potential yet trading below their fair value.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com