Copart Delivers Strong Q1 Fiscal 2026 Earnings, Outpaces Profit Expectations Despite Revenue Miss

Copart Inc. (CPRT) has demonstrated solid profitability in its fiscal first quarter ended October 31, 2025, with adjusted earnings per share reaching 41 cents—edging past the consensus forecast of 40 cents. The bottom-line performance reflected an impressive 10.8% year-over-year expansion. However, the online auto auction platform’s top-line results proved more modest, with revenues totaling $1.16 billion versus the consensus projection of $1.19 billion, though this still marked a marginal 0.7% increase compared to the prior-year period.

Breaking Down Copart’s Q1 Performance Metrics

The company’s service revenues came in at $991.8 million, representing growth from $986.3 million in the same quarter last year but falling slightly below the $1.02 billion estimate. Service operations comprised 85.9% of total company revenues. In the vehicle sales segment, Copart moved $163.2 million worth of inventory, up from $160.5 million previously and outperforming the $149 million projection.

On the expense side, management demonstrated operational discipline. Facility operations costs contracted 4.5% year over year to $427.2 million, while vehicle sales costs rose modestly by 2.4% to $141.5 million. Depreciation and amortization expenses at facilities remained essentially flat at $47.4 million, while stock-based compensation climbed 6.1% to $1.94 million.

Profitability and Cash Position Highlights

Gross profit climbed 4.9% to $537 million on a year-over-year basis. General and administrative expenses increased marginally by 1.4% to $92.3 million. The combined operating expense base fell 2.2% to $724.3 million, translating to operating income of $430.7 million versus $406.4 million in the prior-year quarter. Net income jumped 11.4% to $402.2 million.

The company’s balance sheet strengthened considerably, with cash and restricted cash reaching $5.2 billion as of October 31, 2025, compared with $2.78 billion three months prior. Operating cash generation and capital expenditure during the quarter totaled $535.2 million and $108 million respectively.

Market Rating and Sector Context

CPRT carries a Zacks Rank of #3 (Hold) designation. Within the automotive sector, stronger-ranked alternatives include General Motors Company (GM), OPENLANE Inc. (KAR), and Garrett Motion Inc. (GTX), each holding a Zacks Rank #1 (Strong Buy) rating.

GM’s consensus earnings estimates have improved by 4 cents for 2025 and 11 cents for 2026 over the past week. KAR’s consensus forecasts imply 9.4% sales growth and 48.2% earnings growth for 2025, with EPS estimates raised 9 cents and 11 cents respectively for 2025 and 2026 during the past month. GTX’s projections suggest 2.6% sales expansion and 16.7% earnings growth for 2025, with EPS estimates increased 11 cents and 25 cents for 2025 and 2026 respectively in recent weeks.