The stock rose about 5 percent today, its second straight gain in a week where it has climbed about 10 percent to reach a new recent high. We think this is mostly about the stock winning back ground after a sharp drop in July, as there was no new company news today to explain such a big move.
Our view
Copart owns the land it uses to store wrecked cars, which is a physical advantage that is almost impossible for rivals to copy. If you have been thinking about buying it, this is a fair price to pay for a very high-quality business.
Barclays lowered its target price for the stock from $32 to $26 while keeping an underweight rating, which means they expect it to perform worse than other stocks in the market. This new target is about 10 percent lower than where the stock currently trades.
The move comes as the company faces a period of slower growth. While the business still holds a strong position in the salvage market, analysts are weighing whether the current price fairly reflects the slower pace of expansion compared to previous years.
Jane Pocock will take over as President starting August 1, 2026. She previously led the company's business in the UK and Ireland, where she oversaw a period of growth and expanded the number of salvage yards the company operates in those regions.
This promotion is a signal that the company is leaning into its international expansion. Replicating its US model in foreign markets is a key part of how the business plans to grow, and putting a leader with a successful international track record into the President role suggests that strategy remains a top priority.
Analysts recently lowered their expectations for the company following a flurry of legal investigations and negative stock performance in late July. Most analysts remain positive with 11 of 21 rating it a buy, and the average target suggests 25% upside.
Average target$39.67+25%vs $31.61 today
TodayAvg price
Low $26High $48
Buy21 analysts
1Bearish
9Neutral
11Bullish
FirmRatingPrice TargetDate
Barclays
Underweight
$32→$26
7/21/2026
Jefferies
Buy
$47→$45
5/22/2026
Robert W. Baird
Outperform
$52→$48
2/20/2026
Robert W. Baird
Outperform
$55→$52
11/21/2025
Barclays
Underweight
$32→$33
11/21/2025
Barclays
Underweight
$32
11/11/2025
HSBC
Buy
$62
9/4/2025
Jefferies
Buy
$63
5/17/2024
J.P. Morgan
—
$132
1/13/2023
Stephens
Equal Weight
$74
11/18/2022
Raymond James
—
$110
4/13/2022
Copart earnings
Management has a very consistent habit of clearing the bars set for them, beating analyst profit targets in six of the last eight quarters.
Earnings history
EstimateBeatMiss
Copart past earnings results
Expected
Actual
Surprise
EPS
$0.41
$0.43
+5.8%
Revenue
$1.19B
$1.24B
+3.5%
Key highlights
International revenue accelerating: Service revenue from international markets grew 18% to $160.6 million, which is significantly faster than the domestic U.S. segment where service revenue fell slightly to $895.5 million. This shows the company is successfully replicating its car auction model in countries like the UK and Germany to diversify away from its home market.
Operating margins stay healthy: The company kept its operating margin, the percentage of revenue left after paying for its daily business costs, at 37.5% for the quarter. This performance is roughly the same as last year and shows management is keeping a tight lid on costs even as they expand into new regions.
Massive share buyback program: Copart spent $1.63 billion to buy back its own stock over the last nine months, which is a major shift compared to spending zero on buybacks in the same period last year. This move reduced the total number of shares by 3.6%, making each remaining share own a larger piece of the company's total profits.
Strong volume levels continue: The company sold more than 4 million units over the last twelve months, maintaining its scale as the primary marketplace for salvaged and used vehicles. Consistent volume is vital because it attracts more buyers to the auction platform, which helps the company command better pricing for the insurance firms that sell cars through them.
Investing in physical capacity: Management spent $258.6 million on land and equipment so far this fiscal year to support its global network of over 250 locations. While this is less than the $481.3 million spent by this time last year, the company continues to prioritize owning its yards to ensure it has the space to handle vehicles during high-demand periods like major storms.
Our take: A very efficient quarter that highlights Copart's grip on the salvage market. While U.S. growth was muted, the 18% jump in international service revenue and a massive $1.63 billion buyback show management is finding productive ways to use its cash. It reinforces the case for a steady, well-managed compounder.
Copart’s next earnings date
Q4 2026
SEP
3
Expectation
EPS
$0.39
Revenue
$1.14B
Metrics we are tracking
Metric
Expectations
Status
Unit Volume Growth
Growing total vehicles sold by at least 5% annually
4 million units in the last year
International Service Revenue
Growing at double the rate of the US segment
18% YoY growth in Q3 FY2026
Total Loss Frequency
Industry-wide rates staying above 18% of all accidents
