Copart Q1 Earnings Surpass Expectations, Revenues Increase Y/Y

Copart, Inc. CPRT reported first-quarter fiscal 2026 (ended Oct. 31, 2025) adjusted earnings per share of 41 cents, which beat the Zacks Consensus Estimate of 40 cents. The bottom line increased 10.8% year over year. The online auto auction leader generated revenues of $1.16 billion, missing the Zacks Consensus Estimate of $1.19 billion. The top line, however, rose 0.7% from the year-ago reported figure.

Copart, Inc. Price, Consensus and EPS Surprise

Copart, Inc. price-consensus-eps-surprise-chart | Copart, Inc. Quote

Key Tidbits of CPRT’s Q1 Results

Copart’s fiscal first-quarter service revenues were $991.8 million, which increased from $986.3 million recorded in the year-ago period. However, the figure missed the Zacks Consensus Estimate of $1.02 billion. Service revenues accounted for 85.9% of total revenues.

Vehicle sales totaled $163.2 million in the quarter, which rose from the prior-year quarter’s $160.5 million and topped the Zacks Consensus Estimate of $149 million.

While facility operations expenses declined 4.5% year over year to $427.2 million, the cost of vehicle sales rose 2.4% to $141.5 million. Facility depreciation and amortization came in at $47.4 million, down 0.2% year over year. Facility stock-based compensation increased 6.1% to $1.94 million.

Gross profit was up 4.9% year over year to $537 million. General and administrative expenses rose 1.4% from the prior-year quarter to $92.3 million. Total operating expenses fell 2.2% to $724.3 million.

Operating income rose to $430.7 million from $406.4 million recorded in the year-ago quarter. Net income also grew 11.4% year over year to $402.2 million.

Copart had cash, cash equivalents and restricted cash of $5.2 billion as of Oct. 31, 2025, compared with $2.78 billion as of July 31, 2025.

Net cash from operating activities and capex during the first three months of fiscal 2026 totaled $535.2 million and $108 million, respectively.

Copart’s Zacks Rank & Key Picks

CPRT carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are General Motors Company GM, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 4 cents and 11 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 9.4% and 48.2%, respectively. EPS estimates for 2025 and 2026 have improved 9 cents and 11 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 11 cents and 25 cents, respectively, in the past 30 days. 

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research