Copart Q2 Revenue Beats Estimates, Profit Misses
Copart beat Q2 revenue estimates with sales of $1.15 billion, but GAAP EPS missed consensus due to a sharp decline in operating and free cash flow margins. While the stock rallied on the top-line beat, GN stocks/nasdaq points to slowing long-term revenue growth trends and significant margin compression compared to historical averages.
GN stocks/nasdaq reports that Copart shares surged following the release, highlighting a five-year average adjusted operating margin of 37.2% despite the recent year-over-year drop to 32%. The outlet also notes that the company’s two-year revenue growth has decelerated to 4.9%, a significant slowdown from its five-year trend of 11.6%.
Source: GN stocks/nasdaqGN stocks/nasdaq reports that Copart shares are surging following the announcement, highlighting that the company's operating margin has contracted to 32% from 36.7% in the prior year period. The outlet also notes that free cash flow margin has dropped to 24.2%, reflecting broader efficiency challenges despite the top-line beat.
Source: GN stocks/nasdaqCopart reported Q2 CY2026 revenue of $1.15 billion, exceeding expectations, while GAAP EPS fell short of consensus due to margin compression.
Source: GN stocks/nasdaq
