Copart beat Wall Street's revenue expectations in Q2 CY2026, with sales up 2.4% year on year to $1.15 billion, while non-GAAP profit of $0.35 per share came in 8.5% below analysts' consensus estimates. Revenue topped analyst estimates of $1.14 billion, a 1% beat, but adjusted EPS fell short of the expected $0.38, and operating margin slipped to 32% from 36.7% a year earlier. Management attributed the revenue outperformance to strength in international operations and higher average selling prices, with global insurance average selling prices up 3.1% year over year, domestic insurance ASPs up 3.7% and international ASPs up 3.3%. CEO A. Jayson Adair said the company is doubling down on technology, including AI-driven buyer matching, and noted that investments in new products and services raised operating expenses, with operating expenses per car up 12.7%. Copart also announced it will acquire ACV Auctions, a large digital automotive marketplace, which will operate as an independent subsidiary and is expected to be accretive in the first full year after closing, combining Copart's physical scale and logistics with ACV's digital marketplace.
Copart IncCopart beat Q2 revenue estimates but missed EPS with operating margin slipping to 32% from 36.7%, and announced the ACV Auctions acquisition.
ACV Auctions Inc.Copart announced it will acquire ACV Auctions, which will operate as an independent subsidiary and be accretive in the first full year after closing.
