Aaron's (NYSE:PRG) Releases Q2 2026 Earnings Guidance

Key Points

• Aaron's issued Q2 2026 guidance of $1.05 EPS and $700–725M revenue, both below consensus ($1.08 EPS; $725.7M revenue), and the stock traded down about 4.4% on the update.
• In its most recent quarter the company reported $0.74 EPS, beating estimates by $0.14, but revenue of $525.36M missed expectations and was down 5.2% year-over-year; management set FY2026 guidance of $4.00–4.45 EPS.
• Aaron's raised its quarterly dividend to $0.14 (annualized $0.56), implying a 1.9% yield and a payout ratio of roughly 15.6%.

Aaron's (NYSE:PRG - Get Free Report) issued an update on its second quarter 2026 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 1.050-1.050 for the period, compared to the consensus estimate of 1.080. The company issued revenue guidance of $700.0 million-$725.0 million, compared to the consensus revenue estimate of $725.7 million.

Aaron's Trading Down 4.4%

NYSE:PRG opened at $28.92 on Wednesday. The company has a fifty day moving average of $31.26 and a 200 day moving average of $30.89. Aaron's has a 52 week low of $25.58 and a 52 week high of $41.14. The company has a quick ratio of 2.32, a current ratio of 4.71 and a debt-to-equity ratio of 0.80. The firm has a market capitalization of $1.14 billion, a P/E ratio of 8.03 and a beta of 1.81.

Aaron's (NYSE:PRG - Get Free Report) last issued its quarterly earnings data on Wednesday, February 18th. The company reported $0.74 EPS for the quarter, topping the consensus estimate of $0.60 by $0.14. Aaron's had a net margin of 5.97% and a return on equity of 20.99%. The business had revenue of $525.36 million during the quarter, compared to analyst estimates of $581.82 million. During the same period in the prior year, the business earned $0.80 EPS. The company's revenue for the quarter was down 5.2% on a year-over-year basis. Aaron's has set its Q1 2026 guidance at 0.700-0.900 EPS and its FY 2026 guidance at 4.000-4.450 EPS. On average, research analysts predict that Aaron's will post 4.21 earnings per share for the current year.

Aaron's Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Thursday, March 12th were issued a $0.14 dividend. This is a boost from Aaron's's previous quarterly dividend of $0.13. The ex-dividend date was Thursday, March 12th. This represents a $0.56 annualized dividend and a yield of 1.9%. Aaron's's dividend payout ratio (DPR) is currently 15.56%.

Analysts Set New Price Targets

Several brokerages have commented on PRG. Wall Street Zen upgraded shares of Aaron's from a "hold" rating to a "buy" rating in a report on Saturday, February 21st. TD Cowen upped their price objective on shares of Aaron's from $42.00 to $43.00 and gave the stock a "buy" rating in a report on Wednesday, March 11th. Weiss Ratings restated a "hold (c)" rating on shares of Aaron's in a report on Thursday, January 22nd. Finally, Zacks Research lowered shares of Aaron's from a "strong-buy" rating to a "hold" rating in a research note on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $41.33.

Institutional Investors Weigh In On Aaron's

Institutional investors have recently made changes to their positions in the company. Quarry LP grew its holdings in shares of Aaron's by 82.8% during the fourth quarter. Quarry LP now owns 1,117 shares of the company's stock valued at $33,000 after buying an additional 506 shares during the last quarter. Federation des caisses Desjardins du Quebec purchased a new stake in shares of Aaron's during the fourth quarter valued at approximately $44,000. WealthCollab LLC grew its holdings in shares of Aaron's by 61.9% during the second quarter. WealthCollab LLC now owns 2,092 shares of the company's stock valued at $61,000 after buying an additional 800 shares during the last quarter. Aquatic Capital Management LLC purchased a new stake in shares of Aaron's during the third quarter valued at approximately $204,000. Finally, iSAM Funds UK Ltd purchased a new stake in shares of Aaron's during the third quarter valued at approximately $209,000. Hedge funds and other institutional investors own 97.92% of the company's stock.

Aaron's Company Profile

PROG Holdings, Inc NYSE: PRG, formerly known as Aaron's, is a North American provider of lease-to-own and consumer finance solutions. The company operates through two primary segments: Aaron's Business Solutions and Progressive Financial Services. Through Aaron's Business Solutions, PROG offers customers access to furniture, electronics, home appliances and technology products via lease ownership arrangements, serving both individual consumers and small businesses.

The Progressive Financial Services segment provides lease-purchase and retail point-of-sale financing programs to customers with limited credit histories.

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