Key Takeaways for Copart Stock as of June 2026
- Analysts rate Copart stock 7 buys/outperforms, 5 holds, and 1 underperform, with a mean price target of $41, implying around 35% upside from the current price of $31.
- TIKR’s mid-case model values Copart at around $46 by July 2030, implying around 51% total return, or roughly 11% annualized over the next four years.
- Copart stock is undervalued at current levels, with normalized EPS of $0.43 in Q3 FY26 beating consensus by $0.02 while gross margins expanded to 46%, a dynamic the Street’s forward estimates fail to fully credit.
- U.S. insurance average selling prices rose 4.1% year-over-year to a seasonally adjusted all-time quarterly record in Q3 FY26, demonstrating pricing power that offsets near-term volume pressure.
Copart Stock Beats Q3 EPS Estimates as ASP Growth Hits a Seasonal All-Time Record
Copart (CPRT), the world’s largest online vehicle auction platform for salvage and total-loss vehicles, reported fiscal Q3 2026 revenue of $1.24 billion, up 2.1% year-over-year, beating the $1.20 billion consensus.
Earnings per diluted share came in at $0.43, up 2.4% and $0.02 ahead of the $0.41 estimate, supported by Copart’s ongoing buyback program, which retired over 43.4 million shares for more than $1.6 billion fiscal year-to-date.
The headline revenue growth masked a more important development in the margin line. Global gross profit grew 3.7% to $572.6 million, lifting gross margins 71 basis points to 46.3%.
EBITDA grew 3.4% in the quarter, faster than revenue, confirming that operating leverage is expanding even as unit volumes decline.
Volume was the headwind. Global unit volumes fell 2.4%, with U.S. insurance unit volumes declining 4.2%, reflecting softer claims frequency as consumers pulled back on coverage in response to rising auto insurance premiums. CEO Jeff Liaw addressed the dynamic on the Q3 earnings call, framing the pattern as cyclical, not structural: “Long-term historical data indicates that this consumer retrenchment phenomenon regarding insurance coverage is cyclical and likely counter inflationary.”
Total loss frequency for Q1 calendar 2026 nonetheless reached 23.6%, up almost 5 percentage points over four years, sustaining the structural tailwind that offsets near-term claims softness.
What offset the volume pressure in Q3 was ASP expansion. Average selling prices rose 4.6% globally, and U.S. insurance ASPs specifically grew 4.1%, reaching a seasonally adjusted all-time record for a third quarter. International buyers now represent more than one-third of volume sold at U.S. auctions and nearly half of auction proceeds, giving Copart’s pricing a structural floor no single regional disruption can remove.
Internationally, the growth story was unambiguous. International revenue rose 14% to $234.2 million, with service revenues up 18%, international gross profit up 22%, and international operating income reaching $73.8 million at a 32% margin. The U.K., Germany, and Canada led the gains.
Copart ended the quarter with $5.5 billion in liquidity and zero debt.
Copart Stock Carries 7 Buy Ratings Against a Mean Target of $41
Analysts rate Copart stock a consensus buy, with 7 buys or outperforms, 5 holds, and 1 underperform.
The mean 12-month price target sits at $41, implying around 35% upside from the June 26 close of $31, with the Street’s target range running from $32 on the low end to $55 on the high end.
Wall Street Expects Copart Stock’s EBITDA to Recover Through Fiscal 2027 After a Flat Near-Term Quarter
Copart posted EBITDA of $520 million in Q3 FY26, up 3% year-over-year, with EBITDA margins expanding to 42%. The Street models that rate of improvement slowing sharply in the near term.
Consensus EBITDA for Q4 FY26 sits at around $470 million, roughly flat year-over-year, and the estimate for Q1 FY27 runs around $490 million, implying around 4% growth. The Street prices in a volume-driven plateau before margin recovery resumes.
From Q2 FY27 onward, consensus EBITDA estimates step back toward growth, with estimates of around $560 million and $520 million in Q3 and Q4 FY27 respectively, implying year-over-year growth of around 10% and 12%.
The unresolved condition the Street is waiting on: does U.S. insurance unit volume return to flat or positive growth before the forward EBITDA estimates require upward revision?
TIKR’s $46 Target on Copart Stock Holds If Margin Expansion Sustains the Volume Recovery
TIKR’s mid-case model values Copart at around $46 by July 2030, implying around 51% total return from the current price of around $31, or roughly 11% annualized over four years.
That return profile sits above typical large-cap marketplace expectations, reflecting the structural quality Copart has already demonstrated.
The target is reachable on the Q3 dynamics already in the books: ASP growth at an all-time quarterly record, international gross profit up 22%, and $5.5 billion in liquidity providing the balance sheet to sustain buybacks and land investment through the volume trough.
Should You Invest in Copart, Inc.?
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