Copart 2026 Q1 Earnings Modest Revenue Growth and 11.4% Net Income Increase

Copart (CPRT) reported mixed results for Q1 2026, with revenue rising slightly to $1.16 billion and net income growing by 11.4% year-over-year. While the company exceeded EPS estimates, it fell short of revenue expectations. The stock has since declined amid broader market pressures.

Revenue

Copart’s total revenue in Q1 2026 grew marginally by 0.7% to $1.16 billion, driven by robust service revenues of $991.85 million and vehicle sales of $163.19 million. Service revenues accounted for the majority of the company’s top-line performance, reflecting sustained demand for its auction and remarketing services. Vehicle sales contributed a smaller but stable portion of revenue, highlighting the company’s diversified revenue streams.

Earnings/Net Income

The company’s earnings per share (EPS) rose 10.5% to $0.42, outpacing the $0.38 figure from the prior year. Net income surged to $402.21 million, a 11.4% increase from $361.18 million in Q1 2025. These figures underscore Copart’s ability to maintain profitability despite a modest revenue miss.

Price Action

CPRT shares have underperformed in the post-earnings period, dropping 4.21% in a single trading day, 5.86% over the week, and 12.89% month-to-date. The stock trades near its 12-month low (~$40.73), reflecting investor caution.

Post-Earnings Price Action Review

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

Additional News

JPMorgan Chase & Co. reduced its stake in CPRT by 7.9% in Q2, selling 1.2 million shares to hold 14.1 million shares (1.46%) valued at $693.34 million. Insider selling also intensified, with CEO Jeffrey Liaw cutting his holdings by 43.66% and director Thomas Tryforos offloading $10.88 million worth of shares. Analysts remain cautious, assigning a consensus “Hold” rating with a $49.60 price target. Meanwhile, institutional investors like Vanguard and Geode Capital added to their positions, reflecting a mixed outlook on the stock’s near-term prospects.

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CEO Commentary

No CEO commentary or guidance was explicitly provided in the earnings report or associated call transcript. The available data reflects operational performance but lacks forward-looking statements or strategic insights from leadership.

Guidance

No formal guidance for future quarters was disclosed in the Q1 2026 earnings report. The company’s current performance metrics align with its historical resilience, but no explicit targets or expectations were communicated.

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