Copart, Inc. (NASDAQ:CPRT) is a leading provider of online vehicle auction and remarketing services. The company operates in the Zacks Auction and Valuation Services industry, facilitating the sale of vehicles primarily through its virtual auction platform. Copart's competitors include companies like KAR Auction Services and IAA, Inc.
On November 21, 2025, John Babcock from Barclays set a price target of $33 for Copart, which was notably lower than its trading price of $41.02 at the time. This suggests a potential downside of approximately -19.55% from the target. Despite this, Copart's recent Q1 2026 earnings report highlights strong financial performance.
Copart reported a revenue of $1.16 billion for Q1 2026, marking a slight year-over-year increase. Excluding catastrophic events, revenue growth was 2.9%. The company's gross profit rose by 4.9% to $537 million, improving the gross margin by 184 basis points to 46.5%. This indicates efficient cost management and strong operational performance.
The company achieved record-high average selling prices for US insurance carriers, with global insurance ASPs increasing by 6.8% and US insurance ASPs by 8.4%. Auction liquidity improved as international buyers purchased vehicles valued 38% higher than those bought by US buyers. Copart's US Non-Insurance business also saw a 5.3% increase in dealer unit sales.
Despite a 6.7% decrease in global units sold, Copart continues to invest in technology and infrastructure. The company's Purple Wave platform experienced a gross transaction value growth of over 10%, outperforming the broader industry. Copart's Q1 2026 earnings per share of $0.41 exceeded the Zacks Consensus Estimate, marking a +2.50% earnings surprise.
