Copart Inc. reported first‑quarter fiscal 2026 results that showed revenue of $1.155 billion, a 0.7% year‑over‑year increase, but a miss against the consensus estimate of $1.18 billion. Gross profit rose to $537 million, up 4.9% from the prior year, while net income attributable to the company reached $403.7 million, an 11.5% increase. Earnings per share were $0.41, beating the analyst expectation of $0.40 by $0.01, or 2.5%.
The revenue shortfall was driven by a 6.7% decline in global unit sales and a 17% drop in U.S. inventory, which reduced the volume of vehicles available for auction. Copart offset some of the volume loss with higher average selling prices, but the overall effect was a modest top‑line miss. The company’s international segment, however, grew 5% year‑over‑year, outpacing the U.S. market and helping to cushion the revenue impact.
The EPS beat was largely a result of disciplined cost management and margin expansion. Copart’s gross margin improved to 46.5%, supported by higher ASPs and a shift toward higher‑margin service offerings. International operations, which have a higher mix of premium services, contributed significantly to the margin lift, while the U.S. segment maintained stable costs despite lower volume.
Management highlighted the resilience of the insurance market and emphasized continued investment in technology, including AI‑driven auction enhancements, and international expansion. CEO Jeffrey Liaw noted that the company remains focused on capturing growth in overseas markets, while CFO Leah Stearns underscored investments in capacity and technology to support long‑term profitability.
Investor reaction was mixed. The revenue miss prompted a slight after‑hours decline, as market participants weighed the impact of lower unit volumes against the EPS beat. Analysts noted that while profitability remained strong, the revenue shortfall and volume decline raised concerns about near‑term demand in the used‑vehicle market.
Copart reiterated its commitment to margin expansion and international growth, signaling confidence in its long‑term strategy. The company’s robust cash position of $5.2 billion and strong liquidity provide a solid foundation for continued investment in technology and capacity, positioning Copart to navigate the current market headwinds while pursuing growth opportunities.
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