Carvana (Carvana (CVNA)) just delivered a second-quarter earnings report that, on paper, looks like a home run. Revenue of $7.38 billion blew past the $6.91 billion analysts were expecting, and earnings of 42 cents per share topped the 36-cent consensus. The company sold 197,325 vehicles in the quarter, up 38% from a year ago, pushing total revenue up 52%.

CEO Ernie Garcia sounded characteristically upbeat. "Q2 2026 was Carvana's 10th consecutive quarter of industry-leading growth and profitability, and it was made possible by the foundations we laid in the 10 years prior," he said. "We built an experience customers love, our model gets better as we get bigger, and our execution is the key driver of our progress from here."

So why did the stock get hammered? After hours, Carvana shares were down about 15.6%, trading around $56. The sell-off might be a classic case of "buy the rumor, sell the news" — Carvana stock had rallied sharply into earnings, and even a beat wasn't enough to keep the momentum going. Or maybe traders were focused on the guidance: Carvana expects retail units to increase in Q3 versus Q2, but full-year adjusted EBITDA guidance of $2.7 billion to $3 billion didn't blow anyone away. Q2 adjusted EBITDA came in at $769 million.

The company also reiterated its ambitious long-term targets, saying in a shareholder letter: "We remain firmly on the path to selling three million cars per year and to achieving 13.5% Adjusted EBITDA margin by 2030 to 2035." That's a lot of cars — nearly 10 times current quarterly volume — but Carvana has been hitting its milestones so far.

Management will discuss the quarter on an earnings call at 5:30 p.m. ET. Investors will be listening closely for clues on whether the after-hours dip is a buying opportunity or a warning sign.