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.
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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