Copart Q1 Earnings Surpass Expectations, Revenues Increase Y/Y

Core Insights - Copart, Inc. (CPRT) reported adjusted earnings per share of 41 cents for Q1 fiscal 2026, surpassing the Zacks Consensus Estimate of 40 cents, with a year-over-year increase of 10.8% [1][7] - The company generated revenues of $1.16 billion, slightly missing the Zacks Consensus Estimate of $1.19 billion, but reflecting a 0.7% increase from the previous year [1][7] Revenue Breakdown - Service revenues for the quarter were $991.8 million, up from $986.3 million year-over-year, but below the Zacks Consensus Estimate of $1.02 billion, accounting for 85.9% of total revenues [2] - Vehicle sales reached $163.2 million, an increase from $160.5 million in the prior-year quarter, exceeding the Zacks Consensus Estimate of $149 million [2] Expense and Profit Analysis - Facility operations expenses decreased by 4.5% year-over-year to $427.2 million, while the cost of vehicle sales rose by 2.4% to $141.5 million [3] - Gross profit increased by 4.9% year-over-year to $537 million, with general and administrative expenses rising by 1.4% to $92.3 million [3] - Total operating expenses fell by 2.2% to $724.3 million, leading to an operating income rise to $430.7 million from $406.4 million year-over-year [3][4] Net Income and Cash Position - Net income grew by 11.4% year-over-year to $402.2 million [4] - As of October 31, 2025, Copart had cash, cash equivalents, and restricted cash totaling $5.2 billion, a significant increase from $2.78 billion as of July 31, 2025 [4] Market Position - Copart currently holds a Zacks Rank 3 (Hold) [5] - Competitors with better rankings include General Motors Company (GM), OPENLANE, Inc. (KAR), and Garrett Motion Inc. (GTX), all rated Zacks Rank 1 (Strong Buy) [5]