Copart (CPRT) Q3 2026 earnings summary

Executive summary

• Consolidated revenue for Q3 FY26 grew 2.1% year-over-year to $1.24 billion, driven by higher average selling prices (ASPs) despite a modest decline in unit volumes.

• Gross profit rose 3.7% to $572.6 million, while net income was $402.4 million, down 1.0% year-over-year.

• Diluted EPS for the quarter increased 2.4% to $0.43, aided by ongoing share repurchases.

• Global insurance unit sales declined 2.7%, or 1.9% excluding prior-year catastrophic volumes; U.S. insurance unit volume fell 4.2%.

• International buyer participation remains robust, now representing over one-third of U.S. auction volume and nearly half of auction proceeds.

Financial highlights

• Global gross profit rose 3.7% to $572.6 million, with gross margin up 71 basis points to 46.3%.

• Operating income increased 2.8% to $464.3 million; net income was $402.4 million.

• EPS grew 2.4% to $0.43, with nine-month diluted EPS at $1.20, up 1.7% year-over-year.

• U.S. segment revenue was flat (-0.4%), with insurance ASPs up 4.1% and non-insurance ASPs up 3.7%.

• International revenue grew 14.1% (7.9% ex-FX) to $234.2 million, with insurance ASPs up 8.4% and non-insurance ASPs up 16.7%.

Outlook and guidance

• Management expects long-term growth in insurance business to continue, driven by rising total loss frequency and expanding non-insurance seller base.

• International expansion and increasing auction liquidity are seen as key growth levers for the next five years.

• Consumer retrenchment in insurance coverage is viewed as cyclical and likely to reverse over time.