Copart Q4 2026: Revenue Beat Masked by a 17% Profit Drop
As seen on the 24/7 Wall St. homepage on September 10, 2026.
Revenue edged past estimates but earnings missed expectations, and the reason is cost creep: net income dropped 17.4% on flat top-line growth. That margin story matters as RB Global rebuilds in salvage auctions.
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Copart's fiscal fourth quarter ended July 31, 2026 on an uneven note: revenue edged past consensus, but GAAP diluted EPS of $0.35 missed expectations.
The profit erosion was broad-based, with rising facility operations and vehicle sales costs compressing margins even as the top line grew. Net income fell 17.4% to $327.4 million.
Two items below the operating line made things worse: other income swung to a net expense, and net interest income declined after the company repurchased $1.63 billion of common stock during fiscal year 2026, shrinking the cash pile generating that interest.
For the full fiscal year, revenue was roughly flat and GAAP EPS missed estimates. The cost creep ran through the entire year, with annual operating cash flow declining 10.85% to $1.6 billion.
RB Global is actively rebuilding in salvage auctions, the same market where Copart's service revenues, its largest segment, grew only 1.4% in the quarter. With general and administrative expenses rising 16.6%, investors will want to monitor whether the cost structure stabilizes or continues to outpace revenue growth.
Mentioned: CPRT