United Rentals Reports Disappointing Earnings, Stock Drops
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy URI?
Source: Fool
United Rentals' stock rose by 5.07% as it crossed above the 5-day SMA, despite the broader market decline with the Nasdaq-100 down 0.97%.
The company reported disappointing earnings, with fourth-quarter revenue of $4.21 billion falling short of analyst expectations of $4.24 billion, leading to a decline in market confidence. The net income also decreased by 5%, and the adjusted earnings per share fell from $11.59 to $11.09. Despite a strong performance in the specialty equipment leasing segment, investor dissatisfaction with revenue growth and profit improvement has resulted in downward pressure on the stock. Additionally, Bank of America cut the price target from $1,050 to $1,020 while maintaining a buy rating, further dampening sentiment.
The implications of these results suggest that while there are areas of growth, particularly in specialty leasing, the overall performance has not met expectations, which could lead to continued volatility in the stock price as investors reassess their outlook.
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Analyst Views on URI
Wall Street analysts forecast URI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for URI is 1004 USD with a low forecast of 600.00 USD and a high forecast of 1150 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
12 Buy
1 Hold
1 Sell
Strong Buy
Current: 847.770
Low
600.00
Averages
1004
High
1150
Current: 847.770
Low
600.00
Averages
1004
High
1150
About URI
United Rentals, Inc. is an equipment rental company. The Company's segments include General Rentals and Specialty. General Rentals segment includes the rental of construction, aerial and industrial equipment, general tools and light equipment, and related services and activities. General Rentals segment has four geographic divisions - Central, Northeast, Southeast and West - and operates throughout the United States and Canada. Specialty segment rents products (and provides setup and other services on such rented equipment), including trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work; fluid solutions equipment primarily used for fluid containment, transfer and treatment, and mobile storage equipment and modular office space. It has an integrated network of around 1,591 rental locations in North America, 39 in Europe, 37 in Australia and 19 in New Zealand.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Continuous Innovation Capability: United Rentals is using Snowflake Cortex Code to accelerate the development and maintenance of additional AI agents, ensuring improved quality and reliability from prototype to deployment, thus laying a solid foundation for future AI applications.
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- Market Reaction: Despite the growth in United Rentals' specialty equipment leasing segment, investors were dissatisfied with the lack of revenue growth and profit improvement, leading to downward pressure on the stock and reflecting concerns about future performance.
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- Subscription Model Challenges: Tesla's introduction of a $100 monthly subscription for full self-driving raises potential revenue but faces challenges in consumer acceptance, especially as other manufacturers offer more standard features without additional costs.
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