Copart (CPRT) quarter year Copart Financial Results Summary

Copart, Inc. (CPRT) Q4 2026: Revenue Growth, Profit Decline — Disappointing Quarter for Shareholders

Copart, Inc. (NASDAQ: CPRT) reported its financial results for the fourth quarter of fiscal 2026, revealing a mixed performance. The company achieved revenue of $1.2 billion, which represents an increase of $27.3 million, or 2.4%, compared to the same period last year. However, this growth in revenue was overshadowed by declines in gross profit and net income. Gross profit fell to $481.4 million, a decrease of $28.3 million, or (5.5%), while net income attributable to Copart decreased to $327.4 million, down $68.9 million, or (17.4%) year-over-year. Fully diluted earnings per share (EPS) also declined to $0.35, down from $0.41, reflecting a decrease of (14.6%).

This quarter can be characterized as disappointing for shareholders. While revenue growth is typically a positive indicator, the significant declines in both gross profit and net income suggest underlying challenges that could impact future performance. The drop in net income and EPS indicates that the company is facing pressures that are affecting its profitability, which is a critical concern for investors.

Key Financial Metrics:

• Revenue: $1.2 billion, up $27.3 million or +2.4% YoY
• Gross Profit: $481.4 million, down $28.3 million or (5.5%) YoY
• Net Income: $327.4 million, down $68.9 million or (17.4%) YoY
• Fully Diluted EPS: $0.35, down from $0.41 or (14.6%) YoY

For the full fiscal year ended July 31, 2026, Copart reported revenue of $4.7 billion, an increase of $19.3 million, or 0.4%. However, gross profit decreased by $15.8 million, or (0.8%), and net income fell by $68.2 million, or (4.4%). The fully diluted EPS for the year was $1.55, down from $1.59, reflecting a decrease of (2.5%).

Annual Financial Metrics:

• Annual Revenue: $4.7 billion, up $19.3 million or +0.4% YoY
• Annual Gross Profit: $2.1 billion, down $15.8 million or (0.8%) YoY
• Annual Net Income: $1.5 billion, down $68.2 million or (4.4%) YoY
• Annual Fully Diluted EPS: $1.55, down from $1.59 or (2.5%) YoY

Additional Notes:

• There were no announcements regarding dividends or share buybacks in this report, which could have provided additional support to shareholder value.
• The decline in cash and cash equivalents to $1.9 billion from $2.8 billion year-over-year raises concerns about liquidity and operational flexibility.

Analyst View:

The mixed results indicate that while Copart is managing to grow its top line, the erosion of profitability is a significant red flag. Investors should be cautious as the company navigates these challenges. The decline in net income and EPS suggests that cost pressures or operational inefficiencies may be at play, which could hinder future growth prospects.

Forward Catalyst:

Looking ahead, investors should monitor Copart's ability to stabilize its gross profit margins and net income in the upcoming quarters. The upcoming conference call scheduled for September 10, 2026, will be crucial for gaining insights into management's strategies for addressing these challenges and any potential guidance for future performance. Additionally, any updates on operational efficiencies or market conditions affecting vehicle auctions will be key indicators to watch.

Note: The following tables represent amounts in thousands.

Copart, Inc. Consolidated Statements of Income	(In thousands, except per share amounts)	(Unaudited)
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Copart, Inc. Consolidated Balance Sheets	(In thousands)	(Unaudited)
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