Copart 2026 Q1 Earnings Continued Growth with 11.4% Net Income Increase

Copart (CPRT) reported fiscal 2026 Q1 earnings on Nov 24, 2025, with total revenue rising 0.7% to $1.16 billion, reflecting resilience in its core services and vehicle sales. The company’s earnings growth and sustained profitability underscore its operational strength.

Revenue

Total revenue for Copart’s 2026 Q1 reached $1.16 billion, driven by robust performance in service revenues and vehicle sales. Service revenues, the company’s primary income stream, accounted for $991.85 million, while vehicle sales contributed $163.19 million. This distribution highlights the company’s balanced approach to monetizing its auction and remarketing platforms across global markets.

Earnings/Net Income

Copart’s EPS surged 10.5% to $0.42 in 2026 Q1, outpacing the $0.38 recorded in the prior year. Net income also expanded by 11.4% to $402.21 million, reflecting improved gross margins and efficient cost management. The EPS and net income growth indicate strong performance amid competitive market conditions.

Price Action

The stock price of Copart has dropped 4.21% during the latest trading day, has dropped 5.86% during the most recent full trading week, and has tumbled 12.89% month-to-date.

Post-Earnings Price Action Review

The strategy of buying CPRT when revenues miss and holding for 30 days resulted in a 25.99% return, significantly underperforming the benchmark return of 85.38%. The strategy’s Sharpe ratio was 0.19, indicating modest risk-adjusted returns, while the maximum drawdown was 0%, suggesting the strategy avoided losses during the backtest period.

Additional News

In late November 2025, Baird cut its price target for Copart to $52 from $55, maintaining an Outperform rating despite persistent insurance headwinds. Separately, Copart released its Q3 2025 earnings, reporting a 4.9% increase in gross profit to $537 million and a 11.5% rise in net income to $404 million. Meanwhile, analysts highlighted a growing investment opportunity in AI and energy infrastructure, with one firm promoting a “$250 trillion AI hype” narrative tied to energy and robotics advancements.

CEO Commentary

(No direct quotes available; data-driven summary based on official results.)

Guidance

(No forward-looking guidance provided in the earnings report.)

Conclusion

Copart’s 2026 Q1 results demonstrate resilience in revenue and earnings, supported by strong service and vehicle sales. However, post-earnings stock performance remains volatile, reflecting broader market skepticism. Investors should monitor the company’s strategic initiatives and industry dynamics for potential catalysts.