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Copart (CPRT) Stock Revenue Holds Up As Profitability Tightens

Simply Wall St · 1d ago

Copart stock inched up 0.5% to about $27 after the latest numbers, a muted move for a business that just reported a clear earnings squeeze. Quarterly net income fell to $327.4m and basic earnings per share slipped to $0.35, even as revenue held around $1.2b. That is the tension investors are wrestling with today. Short term pressure on profitability is now colliding with a longer term story built on high trailing margins and a P/E below many peers, which puts the focus squarely on how durable this auction engine really is.

Is Copart a modestly valued cash engine, or is the current P/E still reflecting too much optimism after this margin squeeze? Compare the latest earnings, cash flow assumptions, and market multiples inside the valuation analysis for Copart.

Q4 2026 Copart Earnings Summary

  • Revenue (Q4 2026 vs Q4 2025): US$1,152.4m vs. US$1,125.1m (up about 2.4%)
  • Net Income (Excl. Extra Items, Q4 2026 vs Q4 2025): US$327.4m vs. US$396.4m (down about 17.4%)
  • Basic EPS (Q4 2026 vs Q4 2025): US$0.35 vs. US$0.41 (declined around 14%)
  • Trailing Net Margin (Last 12 Months vs Prior Year): 31.8% vs. 33.4% (compression of about 1.6 percentage points)

Prefer clean visuals instead of another wall of earnings tables and footnotes? See Copart's full picture, including how its valuation, margins and cash generation line up in context through our company report for Copart.

NasdaqGS:CPRT Trailing 12-Month Earnings & Revenue History as at Oct 2026
NasdaqGS:CPRT Trailing 12-Month Earnings & Revenue History as at Oct 2026

Copart Bull Story Meets Mixed Execution Milestones

Bulls argue Copart is building a high throughput, tech heavy, end to end auction platform that can widen margins and broaden supply beyond insurers. The latest quarter partially backs that up. International units rose 10% and revenue in those regions climbed 11.7%, which lines up with the push to scale outside the U.S. Non insurance channels also did their job, with dealer units up 5.8% and BluCar volumes up about 20% in Q4, showing real traction in newer supply streams.

The margin piece of the bullish script looks less convincing for now. Operating income fell 10.6% and net income declined 17.4% even with average selling prices moving higher. Management conceded that operating expense per car increased 12.7% and is now targeting cost per unit as a priority, so the promised efficiency uplift is still more goal than fact.

See whether Copart's international traction and non insurance volume gains are translating into higher or lower optimism on Wall Street by checking the consensus price target analysis for Copart.

Copart Bears Get Ammo On Profitability And Mix

The harshest Copart bear story says the salvage engine is losing insurance volume, overbuilding capacity and leaning too hard on more cyclical non insurance channels. This quarter does not knock that argument down. Global units sold declined 2.9% and global insurance units fell 4.2%, with domestic insurance volumes down 7.5% after a lost customer. That is exactly the contract and share loss risk critics focus on. Revenue still edged higher as average selling prices improved, yet operating income dropped 10.6% and net income fell 17.4%, a clear sign that fixed costs and higher operating expense per car are biting.

Non insurance recovery helps at the margin, with dealer units up 5.8% and BluCar volumes rising around 20%, but that support comes from more cyclical demand. For a bear framing the story around softer insurance flows and underused capacity, this print largely hits their checklist.

Analyze whether Copart's cash generation, balance sheet strength, and short term margin squeeze still add up to a comfortable liquidity cushion or a brewing stress point by running the full financial health analysis of Copart stock.

Stay Ahead With Copart And Your Portfolio

Margin compression and shifting unit mix can make timing a position in Copart tricky, so register for free with Simply Wall St and add it to your Watchlist to track price against fair value and wait for conditions that match your playbook. After you commit capital, keep your decisions clear by managing everything through the Portfolio Command Center, which highlights only the most important developments and fundamentals across your holdings. For broader context on what other investors are seeing in Copart and similar opportunities, tap into the Community and compare perspectives before you act. Spot potential catalysts and emerging risks early, stay informed, and give yourself a better chance of staying ahead of the market.

Seeking Alternatives Beyond Copart?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.