$CPRT · COPART INC
Copart reported Q4 FY2026 results for the period ended July 31, 2026. Total revenue rose 2.4% YoY to $1.15B, but net income attributable to Copart fell 17.4% to $327.4M ($0.35 diluted EPS vs. $0.41 last year). Gross profit declined 5.5% as facility operations costs (+7.7%) and cost of vehicle sales (+11.4%) outpaced revenue growth. Full-year FY2026 revenue was nearly flat at $4.67B (+0.4%) with net income down 4.4% to $1.48B. The company deployed $1.63B in share repurchases during the year.
- Q4 net income attributable to Copart fell 17.4% YoY to $327.4M, with diluted EPS dropping 14.6% to $0.35.
- Q4 gross profit declined 5.5% YoY to $481.4M as facility operations costs jumped 7.7% and cost of vehicle sales rose 11.4%.
- Full-year FY2026 revenue was essentially flat at $4.67B (+0.4%), while net income fell 4.4% to $1.48B.
- Copart repurchased $1.63B of common stock during FY2026, reducing diluted share count by 4.7% in Q4.
- Cash and equivalents dropped $872.6M YoY to $1.91B, driven by the buyback and $337.4M in capex.
Stock fell 4.35% from filing-time price to $30.75 in the regular session, with the after-hours session now underway. The broad-based margin compression — operating income down 10.6% in Q4 on just 2.4% revenue growth — is driving the negative reaction despite the aggressive buyback.
Copart's Q4 reveals a rare earnings contraction for a compounder: revenue barely growing while costs accelerate, raising questions about the growth narrative that supports its premium valuation.
Copart's flat full-year service revenue (+0.0% YoY) contrasts with the growth trajectory expected of a dominant vehicle auction platform. International service revenue grew 15.5% in Q4, partially offsetting U.S. stagnation.
Facility operations costs grew 7.7% in Q4, outpacing revenue growth of 2.4%, signaling margin pressure that could persist. Other income swung from +$16.0M to -$3.8M, adding volatility below the operating line.
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