Copart, Inc. (NASDAQ: CPRT) introduced monetary outcomes for its second fiscal quarter ended January 31, 2026, revealing a interval of contraction throughout a number of key profitability metrics. The worldwide car public sale chief reported that whereas it maintained a powerful liquidity place, it confronted headwinds in income and working earnings in comparison with the identical interval within the earlier 12 months.
Monetary Efficiency Overview
For the quarter, Copart generated complete income of $1.12 billion, representing a 3.6% lower from the prior 12 months. Internet earnings attributable to the corporate fell 9.5% to $350.7 million, whereas diluted earnings per share (EPS) settled at $0.36, down from $0.40 within the second quarter of fiscal 2025.
The next desk summarizes the important thing year-over-year monetary comparisons for the quarter:
| Metric (In 1000’s, besides EPS) | Q2 FY2026 | Q2 FY2025 | % Change |
| Complete Income | $1,121,674 | $1,163,316 | (3.6)% |
| Service Revenues | $952,051 | $991,281 | (4.0)% |
| Automobile Gross sales | $169,623 | $172,035 | (1.4)% |
| Gross Revenue | $492,812 | $525,553 | (6.2)% |
| Working Revenue | $388,710 | $426,211 | (8.8)% |
| Internet Revenue (Attributable to Copart) | $350,732 | $387,400 | (9.5)% |
| Diluted EPS | $0.36 | $0.40 | (10.0)% |
Operational Evaluation and Phase Information
The decline in working earnings was primarily pushed by a contraction in service revenues, which fell by $39.2 million year-over-year. Working bills noticed a slight discount of 0.6% as the corporate managed facility operations prices, which dropped 2.7% to $427.5 million. Nevertheless, basic and administrative (G&A) bills rose 3.2% to $89.4 million, putting further stress on margins.
Phase information signifies a divergent pattern between home and worldwide markets:
United States: Working earnings fell 9.2% to $341.5 million as service revenues within the U.S. decreased by 5.6%.
Worldwide: Whereas worldwide service revenues grew 7.7% to $132.6 million, worldwide working earnings declined 6.1% to $47.2 million, largely as a result of greater G&A and operational prices in these areas.
Six-Month Cumulative Outcomes
Regardless of the quarterly dip, Copart’s efficiency for the primary half of fiscal 2026 remained secure. For the six months ended January 31, 2026, internet earnings attributable to Copart rose 0.7% to $754.4 million, and diluted EPS remained flat at $0.77 in comparison with the prior 12 months. This resilience was supported by a 19.9% improve in curiosity earnings, which reached $103.5 million for the half-year interval.
Steadiness Sheet and Strategic Development Drivers
Copart concluded the quarter with a strong steadiness sheet, reporting $5.1 billion in money, money equivalents, and restricted money, a big improve from the $2.8 billion reported on the finish of the earlier fiscal 12 months. Complete belongings grew to $10.6 billion.
The corporate continues to leverage its world scale, connecting consignors to roughly 1 million members in over 185 nations. With operations at greater than 250 areas throughout 11 nations, Copart offered over 4 million models within the final 12 months. Through the first half of fiscal 2026, the corporate demonstrated its dedication to shareholder worth by repurchasing $218.2 million of its frequent inventory.
Market Context
As a worldwide chief in on-line car auctions, Copart’s efficiency is commonly considered as a bellwether for the broader car remarketing trade. The present outcomes counsel a interval of adjustment as the corporate navigates shifting volumes within the insurance coverage and seller sectors, although its huge money reserve supplies important flexibility for future infrastructure funding and strategic acquisitions.
Causes to Move on CPRT
- Income contraction: Complete income declined 3.6% 12 months over 12 months to $1.12 billion in Q2 FY2026.
- Service income stress: Service revenues, the corporate’s major income stream, fell 4.0% 12 months over 12 months, driving a lot of the general top-line decline.
- Profitability deterioration: Gross revenue declined 6.2% 12 months over 12 months. Working earnings decreased 8.8%. Internet earnings attributable to the corporate fell 9.5%.
- Earnings decline: Diluted EPS decreased 10% 12 months over 12 months to $0.36.
- U.S. section weak point: U.S. working earnings declined 9.2%, with home service revenues down 5.6%.
- Worldwide margin stress: Regardless of 7.7% development in worldwide service revenues, worldwide working earnings fell 6.1% as a result of greater basic and administrative and operational prices.
- Rising G&A bills: Normal and administrative bills elevated 3.2% 12 months over 12 months, including stress to margins.
- Dependence on curiosity earnings for stability: First-half internet earnings development was supported partly by a 19.9% improve in curiosity earnings, indicating core working momentum was restricted.
- Trade quantity changes: Outcomes replicate shifting volumes within the insurance coverage and seller sectors, suggesting near-term demand variability within the car remarketing market.
- Close to-term earnings volatility: The quarter displays broad-based declines throughout key profitability metrics regardless of a powerful liquidity place.
