01—Abstract
Summary
Summary of the 8-K filed May 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Copart, Inc. (NASDAQ: CPRT) reported third quarter fiscal 2026 results for the three months ended April 30, 2026, showing modest top-line growth.
Total service revenues and vehicle sales rose 2.1% to $1.24 billiona, gross profit increased 3.7% to $572.6 million, and operating income grew 2.8% to $464.3 million. However, net income attributable to Copart fell 1.0% to $402.4 million, driven by a sharp drop in other income (down $9.5 million, largely from a swing in other expense) and lower interest income, which declined 9.3% as cash deployed into buybacks and lower held-to-maturity balances reduced earnings on investments. Diluted EPS rose 2.4% to $0.43 from $0.42, helped by a 3.6% reduction in diluted weighted average shares to 942.8 million.
For the nine months ended April 30, 2026, revenue was essentially flat at $3.51 billionb (down 0.2%), gross profit rose 0.8% to $1.60 billion, and net income attributable to Copart was $1.16 billion, up 0.1%. Diluted EPS of $1.20 compared with $1.18 a year earlier, an increase of 1.7%. Growth was concentrated in the International segment, where operating income rose 10% to $176.8 million on revenue growth of 7.4%, while U.S. operating income declined 1.5% to $1.11 billion amid U.S. service revenue softness.
Balance sheet and cash flow activity was dominated by capital return. Copart repurchased $1.63 billionc of common stock in the first nine months, and common shares outstanding fell meaningfully, while operating cash flow declined to $1.25 billion from $1.36 billion.
Capital expenditures dropped sharply to $258.6 milliond from $481.3 million, and cash and equivalents rose to $3.35 billion. Investors should weigh the EPS support from buybacks against largely stagnant underlying net income and softening U.S. trends.
02—Key points
Key Highlights
- Q3 FY2026 total service revenues and vehicle sales of $1.237 billion, up 2.1% year over year; nine-month revenue of $3.514 billion, down 0.2%.
- Q3 gross profit of $572.6 million, up 3.7%; operating income of $464.3 million, up 2.8%.
- Q3 net income attributable to Copart of $402.4 million, down 1.0%, as other income fell 26.2% and interest income declined 9.3%.
- Diluted EPS of $0.43 in Q3 (up 2.4%) and $1.20 for nine months (up 1.7%), supported by a 3.6% reduction in Q3 diluted share count.
- Share repurchases of $1.63 billion in the first nine months of FY2026 versus none in the prior-year period, a major driver of capital allocation.
- U.S. nine-month operating income declined 1.5% to $1.11 billion, while International operating income rose 10% to $176.8 million.
- Operating cash flow fell to $1.25 billion from $1.36 billion for the nine months, while capex dropped to $259 million from $481 million.
03—Questions
Frequently Asked Questions
Did Copart's core profitability improve in the third quarter?
Partially. Revenue rose 2.1%, gross profit rose 3.7%, and operating income rose 2.8%, indicating improved operating performance. However, net income attributable to Copart declined 1.0% because non-operating income fell, including lower interest income and a swing to other expense.
Why did EPS grow when net income declined?
Diluted share count fell 3.6% year over year to 942.8 million shares, largely due to share repurchases. Lower share count raised per-share earnings even though absolute net income slipped slightly, making buybacks the main driver of the 2.4% EPS increase.
How is the U.S. business performing compared with International?
The U.S. segment is under pressure: nine-month U.S. operating income fell 1.5% and U.S. service revenues declined 2.2%. The International segment is the growth engine, with nine-month operating income up 10% and revenues up 7.4%, driven by a 13% rise in International service revenues.
How much cash did Copart return to shareholders, and what does its liquidity look like?
Copart repurchased $1.63 billion of stock in the first nine months of FY2026. Despite this, cash, cash equivalents, and restricted cash rose to $3.35 billion at April 30, 2026, because the company liquidated $2.0 billion of held-to-maturity securities, and total stockholders' equity declined to $8.77 billion.
What should investors watch going forward?
Investors should monitor whether U.S. service revenue stabilizes, whether International growth continues, the pace of buybacks relative to cash generation (operating cash flow fell 8% for the nine months), and the impact of lower interest income as cash balances are redeployed. The filing does not include FY2026 guidance, so forward expectations should be taken from the earnings call.
04—Continue