Copart 2026 Q1 Earnings Strong Performance with 11.4% Net Income Growth

Copart (CPRT) reported Q1 2026 earnings on November 20, 2025, with revenue of $1.16 billion (up 0.7% YoY), exceeding EPS estimates but missing revenue forecasts. The company maintained in-line guidance, emphasizing operational resilience despite weak demand in the used car market.

Revenue

Service revenues accounted for the bulk of Copart’s earnings, reaching $991.85 million, while vehicle sales contributed an additional $163.19 million. Total revenue grew marginally to $1.16 billion, driven by a 0.6% rise in service revenue and a 1.7% increase in vehicle sales. International operations outperformed U.S. segments, with 7.9% growth in service revenue, offsetting a 0.5% decline in the domestic market.

Earnings/Net Income

Copart’s EPS surged 10.5% to $0.42, reflecting improved profitability, supported by a 11.4% rise in net income to $402.21 million. The company has sustained profitability for over two decades, underscoring operational efficiency and resilient business models.

Price Action

Post-earnings, CPRT shares declined 0.88% daily, 1.44% weekly, and 10.36% month-to-date, reflecting market skepticism amid revenue misses and broader sector headwinds.

Post-Earnings Price Action Review

The strategy of buying CPRT shares after its revenue decline quarter-over-quarter and holding for 30 days historically yielded an average return of 10.54% over three years, with a maximum of 15.23% and a minimum of 6.52%. This suggests the strategy remains profitable despite recent volatility.

CEO Commentary

CEO Jeffrey Liaw highlighted challenges in U.S. insurance unit declines but emphasized Copart’s competitive edge in auction returns, with U.S. insurance ASPs rising 8.4%. Strategic priorities include leveraging international demand (38% higher value from non-U.S. buyers) and technology investments.

Guidance

Copart reported $1.16 billion in revenue and $0.41 EPS, aligning with historical growth trends. Management reiterated confidence in auction liquidity and total loss frequency, though no explicit forward guidance was provided.

Additional News

Recent news focused on Copart’s international expansion, with 38% higher vehicle value from international buyers compared to U.S. counterparts. The CEO emphasized investments in systems for commercial sellers and technology like Purple Wave, which drove 10% GTV growth. Additionally, Copart’s $5.23 billion cash reserves highlighted its strong liquidity position.

The company’s U.S. non-insurance business saw 5.3% growth in dealer unit sales, while global ASPs rose 6.8%, outpacing industry benchmarks. Despite a 6.7% decline in global units sold, Copart’s margin expansion and disciplined capital allocation underscored its long-term resilience.