8-K: Copart Reports Q4 FY26 Results: Revenue Up, Profit Down

Copart, Inc. announced its fourth quarter and full year fiscal 2026 financial results, reporting an increase in revenue but a decrease in gross profit and net income compared to the prior year.

Summary

• For the fourth quarter of fiscal year 2026 (ended July 31, 2026), Copart reported total revenue of $1.152 billion, a 2.4% increase from the prior year.
• Gross profit for the quarter decreased by 5.5% to $481.4 million.
• Net income attributable to Copart, Inc. for the quarter fell by 17.4% to $327.4 million.
• Fully diluted earnings per share (EPS) for the quarter decreased by 14.6% to $0.35.
• For the full fiscal year 2026, total revenue was $4.666 billion, a 0.4% increase.
• Full-year gross profit decreased by 0.8% to $2.084 billion.
• Full-year net income attributable to Copart, Inc. decreased by 4.4% to $1.484 billion.
• Full-year diluted EPS declined by 2.5% to $1.55.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative sentiment due to declining net income and EPS, despite revenue growth. The decrease in gross profit and operating income further contributes to this assessment.

Positives

• Total revenue for the fourth quarter increased by 2.4% to $1.152 billion.
• Total revenue for the full fiscal year 2026 increased by 0.4% to $4.666 billion.
• Vehicle sales revenue saw an increase of 8.3% in the fourth quarter and 2.7% for the full year.
• Service revenues saw a slight increase of 1.4% in the fourth quarter and 0.0% for the full year.
• The company operates globally with over 250 locations in 11 countries and sold over 4 million units in the last year.

Negatives

• Gross profit for the fourth quarter decreased by 5.5% to $481.4 million.
• Net income attributable to Copart, Inc. for the fourth quarter decreased by 17.4% to $327.4 million.
• Fully diluted EPS for the fourth quarter decreased by 14.6% to $0.35.
• Gross profit for the full fiscal year 2026 decreased by 0.8% to $2.084 billion.
• Net income attributable to Copart, Inc. for the full fiscal year 2026 decreased by 4.4% to $1.484 billion.
• Fully diluted EPS for the full fiscal year 2026 decreased by 2.5% to $1.55.
• Operating income for the fourth quarter decreased by 10.6% to $368.9 million.
• Operating income for the full fiscal year 2026 decreased by 2.6% to $1.653 billion.

Risks

• The filing contains a cautionary note about forward-looking statements, indicating that actual results could differ materially due to substantial risks and uncertainties.
• Investors are encouraged to review the Management's Discussion and Analysis and other risk factors identified in Copart's SEC filings (10-K, 10-Q, 8-K).

Future Outlook

The filing does not contain specific forward-looking guidance but includes a cautionary note regarding the inherent risks and uncertainties in forward-looking statements, suggesting that actual results may differ materially.

Industry Context

StockSavvy.ai notes that Copart operates in the vehicle remarketing industry, a sector sensitive to economic conditions, insurance claim volumes, and vehicle depreciation rates. The reported revenue growth, albeit modest, indicates continued demand for its services, while the decline in profitability suggests potential pressures on margins, possibly due to increased operating costs or competitive dynamics within the industry.

Stakeholder Impact

• Shareholders may be concerned by the decline in net income and EPS, despite revenue growth, which could impact stock valuation and dividend potential.
• The company's global operations and significant unit sales suggest a broad impact on various stakeholders including insurance companies, financial institutions, dealers, and the general public who utilize Copart's services.

Next Steps

• Copart will conduct a conference call on September 10, 2026, at 5:30 p.m. Eastern Time to discuss the financial results for the fourth quarter of fiscal year 2026.

Key Dates

Recommendation

While revenue shows modest growth, the significant decline in net income and EPS for both the quarter and the full year indicates profitability challenges. The decrease in gross profit suggests margin pressures. Given these mixed results, a 'hold' recommendation is appropriate pending further clarity on the drivers of the profit decline and future performance trends.

Keywords

vehicle auctions, online auctions, financial results, revenue, net income, earnings per share, fiscal year 2026, automotive remarketing