Online vehicle auction company Copart (NASDAQ: CPRT) reported Q2 CY2026 results beating Wall Street’s revenue expectations, with sales up 2.4% year on year to $1.15 billion. Its GAAP profit of $0.35 per share was 8.7% below analysts’ consensus estimates.
Is now the time to buy Copart? Find out by accessing our full research report, it’s free.
Copart (CPRT) Q2 CY2026 Highlights:
- Revenue: $1.15 billion vs analyst estimates of $1.14 billion (2.4% year-on-year growth, 1% beat)
- EPS (GAAP): $0.35 vs analyst expectations of $0.38 (8.7% miss)
- Operating Margin: 32%, down from 36.7% in the same quarter last year
- Free Cash Flow Margin: 24.2%, down from 31.2% in the same quarter last year
- Market Capitalization: $29.65 billion
Company Overview
Starting as a single salvage yard in California in 1982, Copart (NASDAQ: CPRT) operates an online auction platform that connects sellers of damaged and salvage vehicles with buyers ranging from dismantlers and rebuilders to used car dealers and exporters.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $4.67 billion in revenue over the past 12 months, Copart is one of the larger companies in the business services industry and benefits from a well-known brand that influences purchasing decisions.
As you can see below, Copart’s 11.6% annualized revenue growth over the last five years was excellent. This is a great starting point for our analysis because it shows Copart’s demand was higher than many business services companies.
We at StockStory place the most emphasis on long-term growth, but within business services, a half-decade historical view may miss recent innovations or disruptive industry trends. Copart’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.9% over the last two years was well below its five-year trend. 
We can better understand the company’s revenue dynamics by analyzing its most important segments, Service
and Vehicle Sales, which are 84.1% and 15.9% of revenue. Over the last two years, Copart’s Service
revenue (processing and selling cars) averaged 4.5% year-on-year growth while its Vehicle Sales revenue averaged 1.9% growth. 
This quarter, Copart reported modest year-on-year revenue growth of 2.4% but beat Wall Street’s estimates by 1%.
Looking ahead, sell-side analysts expect revenue to grow 4.6% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not catalyze better top-line performance yet. At least the company is tracking well in other measures of financial health.
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Adjusted Operating Margin
Copart has been a well-oiled machine over the last five years. It demonstrated elite profitability for a business services business, boasting an average adjusted operating margin of 37.2%.
Analyzing the trend in its profitability, Copart’s adjusted operating margin decreased by 3.9 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability.
In Q2, Copart generated an adjusted operating margin profit margin of 32%, down 4.7 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth — for example, a company could inflate its sales through excessive spending on advertising and promotions.
Copart’s solid 9.7% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.
For Copart, its two-year annual EPS growth of 5.2% was lower than its five-year trend. This wasn’t great, but at least the company was successful in other measures of financial health.
In Q2, Copart reported EPS of $0.35, down from $0.40 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Copart’s full-year EPS to grow 7% from $1.55 to $1.65.
Key Takeaways from Copart’s Q2 Results
It was good to see Copart narrowly top analysts’ revenue expectations this quarter. On the other hand, its EPS missed. Results were better than feared as the stock traded up 9.5% to $33.57 immediately after reporting.
So do we think Copart is an attractive buy at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
