A month has gone by since the last earnings report for United Rentals (URI Quick QuoteURI - Free Report) . Shares have lost about 5.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is United Rentals due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for United Rentals, Inc. before we dive into how investors and analysts have reacted as of late.

United Rentals Q1 Earnings & Revenues Beat on Strong Rental Demand

United Rentals reported solid first-quarter 2026 results, with adjusted earnings per share (EPS) and total revenues beating the Zacks Consensus Estimate and growing year over year.

Solid execution across its general rentals and specialty businesses helped drive record first-quarter results, while fleet productivity increased 2.3% from the year-ago period.

United Rentals’ Q1 Earnings & Revenues

URI posted adjusted earnings per share of $9.71 for the first quarter, up 9.6% year over year and beat the Zacks Consensus Estimate of $9.01 by 7.8%.

Total revenue rose 7.2% year over year to $3.99 billion and topped the consensus mark of $3.87 billion by 2.9%. 

A closer look at the top line shows that equipment rentals remained the dominant contributor in the quarter. Equipment rentals revenue totaled $3.42 billion (up 8.7% year over year), supported by continued demand across construction and industrial end markets. Average original equipment at cost increased 5.7% year over year.

Non-rental lines were mixed but additive to the overall revenue base. Sales of rental equipment were $350 million (down 7.2% year over year), while sales of new equipment were $84 million, up 20% from the year-ago quarter. Contractor supplies sales contributed $40 million and service and other revenues added $92 million, reflecting URI’s broader “one-stop shop” positioning around jobsite solutions.

United Rentals Sees Divergent Margin Trends by Segment

Segment results highlighted both momentum and mix-related pressure points.

In the General Rentals segment, equipment rentals revenue increased 6.2% year over year to $2.23 billion, and equipment rentals gross margin expanded 150 basis points (bps) to 33.8%.

Specialty continued to outgrow the core, with equipment rentals revenue up 13.8% to $1.19 billion. However, specialty equipment rentals gross margin declined 170 bps to 41.4%, with the company citing higher depreciation expense, increased delivery costs and revenue mix changes tied to growth in lower-margin ancillary revenues.

United Rentals Margin Profile Improves Modestly

At the consolidated level, profitability expanded slightly year over year. Gross profit was $1.47 billion, implying a gross margin of 36.9% versus 36.5% in the year-ago quarter.

Operating income totaled $869 million, producing an operating margin of 21.8% compared with 21.6% a year earlier. The quarter included a $45 million restructuring charge versus $1 million in the first quarter of 2025, tied to the consolidation of certain functions and other cost reduction measures. Selling, general and administrative expenses were $441 million, essentially flat year over year, suggesting cost discipline amid a higher revenue base.

URI also delivered adjusted EBITDA of $1.76 billion, translating to a 44.1% margin for the quarter, which was up 80 bps year over year.

United Rentals Balance Sheet Supported Returns

URI’s balance sheet and liquidity profile remained a core support for shareholder returns and fleet investment. As of March 31, 2026, total liquidity was $3.38 billion, including $156 million of cash and cash equivalents, while the net leverage ratio was 1.9.

Net cash provided by operating activities totaled $1.51 billion (up from $1.43 billion from the year-ago period), and free cash flow was $1.05 billion (down from $1.08 billion a year ago). URI continued investing in the fleet, including gross payments for purchases of rental equipment of $767 million and gross rental capital expenditures of $874 million.

Capital returns were meaningful alongside that reinvestment. The company returned $500 million to shareholders during the quarter, consisting of $375 million in share repurchases and $125 million in dividends paid. URI also declared a quarterly dividend of $1.97 per share, payable May 27, 2026, to stockholders of record on May 13.

URI Guidance Rose Across Key 2026 Targets

Management raised full-year fiscal 2026 targets, lifting expectations across several major line items versus the prior outlook. For total revenue, URI now expects $16.9-$17.4 billion, up from the prior range of $16.8-$17.3 billion.

The company also increased its adjusted EBITDA outlook to $7.625-$7.875 billion from $7.575-$7.825 billion expected earlier. On the investment front, URI lifted its net rental capital expenditures after gross purchases target to $2.95-$3.35 billion, after gross purchases of $4.4-$4.8 billion. The prior view called for net rental capital expenditures of $2.85-$3.25 billion, after gross purchases of $4.3-$4.7 billion.

Cash generation expectations moved higher as well. URI now forecasts net cash provided by operating activities of $5.4-$6.2 billion, up from $5.3-$6.1 billion. The company maintained its free cash flow outlook excluding restructuring-related payments at $2.15-$2.45 billion, unchanged from the prior outlook.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, United Rentals has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, United Rentals has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.