United Rentals Shares Rise 9% Despite Q4 EPS Miss and 10% Dividend Hike
United Rentals reported Q4 adjusted EPS of $11.09 (6.8% below estimates) and revenues of $4.21 billion (1.1% short), while revenues grew 2.8% year-over-year and the board raised its quarterly dividend 10% to $1.97. Shares have risen 9% since the report, with 2026 revenue guidance of $16.8–17.3 billion.
1. Stock Reaction and Dividend Boost
United Rentals shares have climbed about 9% since the late-January earnings release, outperforming broader benchmarks as investors welcomed the company’s 2.8% year-over-year revenue growth and 10% dividend increase despite EPS and revenue misses.
2. Q4 Financial Performance
The company reported adjusted EPS of $11.09, missing consensus by 6.8%, and quarterly revenues of $4.21 billion, 1.1% below estimates but up 2.8% from the prior year. Equipment rental revenues rose 4.6% to $3.58 billion with fleet productivity up 0.5%, while used equipment sales declined 14.6% to $386 million, driving gross margin down 240 basis points to 37.6%.
3. 2026 Guidance and Outlook
For 2026, United Rentals forecasts revenues of $16.8–17.3 billion and adjusted EBITDA of $7.575–7.825 billion, with net rental capital expenditures of $2.85–3.25 billion. The company expects $5.3–6.1 billion in net operating cash flow and $2.15–2.45 billion in free cash flow, while downward estimate revisions have contributed to a VGM Score of D and a hold stance.