Snapshot

Copart’s market capitalisation was $25.2 billion as of September 28, 2026. Revenue was $4.7 billion, operating income was $1.7 billion, net income was $1.5 billion, and diluted EPS was $1.55 in FY2026. Free cash flow was $1.3 billion in FY2026.

In Q4 FY2026, revenue was $1.2 billion, gross profit was $481.4 million, operating income was $368.9 million, and net income was $326.8 million. Diluted EPS was $0.35 and free cash flow was $280.2 million in Q4 FY2026. Gross margin was 41.8% and operating margin was 32.0% in Q4 FY2026.

Growth

Revenue was $4.7 billion in FY2026, with growth of 0.41% in FY2026 against FY2025. Revenue compound annual growth was 6.44% in FY2023–FY2026 and 11.6% in FY2021–FY2026. Diluted EPS was $1.55 in FY2026, with growth of −2.52% in FY2026 against FY2025; its compound annual growth was 6.59% in FY2023–FY2026 and 9.71% in FY2021–FY2026.

Free cash flow was $1.3 billion in FY2026 and grew 1.45% in FY2026 against FY2025. Free cash flow compound annual growth was 13.2% in FY2023–FY2026 and 19.5% in FY2021–FY2026. In Q4 FY2026, revenue was $1.2 billion, diluted EPS was $0.35, and free cash flow was $280.2 million. Revenue increased 2.43%, while diluted EPS decreased −14.6% and free cash flow decreased −25.7%, in Q4 FY2026 against Q4 FY2025.

Profitability

Gross margin was 44.7%, operating margin was 35.4%, pre-tax margin was 39.3%, and net margin was 31.7% in FY2026. Over FY2021–FY2026, gross margin changed −5.2 percentage points, operating margin changed −6.8 percentage points, pre-tax margin changed −2.3 percentage points, and net margin changed −3.1 percentage points.

Return on equity was 16.2%, return on assets was 14.8%, and return on invested capital was 22.4% in FY2026. Return on equity was 26.7%, return on assets was 22.1%, and return on invested capital was 26.3% in FY2022. In Q4 FY2026, gross margin was 41.8% and operating margin was 32.0%. Industry median profitability measures are not reported.

Balance sheet

Cash and short-term investments were $4.5 billion, while net debt was −$4.5 billion, in FY2026. Shareholders’ equity was $9.1 billion and working capital was $4.9 billion in FY2026. Book value per share was $9.58 in FY2026.

At Q4 FY2026, the current ratio was 7.9× and debt to equity was 0.0×. Net debt was −$4.5 billion in Q4 FY2026, compared with −$4.2 billion in Q3 FY2026 and −$4.8 billion in Q4 FY2025. Shareholders’ equity was lower than the $9.2 billion reported in FY2025, while cash and short-term investments were lower than the $4.8 billion reported in FY2025.

Cash flow & capital return

Operating cash flow was $1.6 billion in FY2026, down −10.8% in FY2026 against FY2025. Capital expenditure was $324.8 million in FY2026, compared with $538.4 million in FY2025. Free cash flow was $1.3 billion in FY2026, up 1.45% in FY2026 against FY2025, and represented 86.4% of net income in FY2026.

Net share repurchases were $1.6 billion in FY2026, compared with −$57.4 million in FY2025. Weighted average shares were 949.6 million shares in FY2026, and the share count changed 0.49% over FY2021–FY2026. Dividends paid were $235,000.00 in FY2018; a later dividends-paid figure is not reported. Management attributes FY2026 financing cash outflows primarily to common-stock repurchases.

Valuation

The P/E was 17.4× as of September 28, 2026, below the five-year median of 28.2× and the ten-year median of 30.6× as of September 28, 2026. The P/E was below the industry median of 23.5× as of September 28, 2026.

The P/S was 5.4× and the P/B was 2.8× as of September 28, 2026. The P/S was below its five-year median of 9.4× and ten-year median of 9.1×, but above the industry median of 1.0×, as of September 28, 2026. The P/B was below its five-year median of 6.6× and ten-year median of 6.9×, while above the industry median of 2.3×, as of September 28, 2026. EV/Sales was 4.5× as of September 28, 2026, below its five-year median of 8.4× and ten-year median of 8.6×, but above the industry median of 1.5×.

What changed since last quarter

Revenue was $1.2 billion in Q4 FY2026, down −6.84% against Q3 FY2026 and up 2.43% against Q4 FY2025. Diluted EPS was $0.35 in Q4 FY2026, down −18.6% against Q3 FY2026 and −14.6% against Q4 FY2025. Free cash flow was $280.2 million in Q4 FY2026, down −45.0% against Q3 FY2026 and −25.7% against Q4 FY2025.

Gross margin was 41.8% in Q4 FY2026, down −4.5 percentage points against Q3 FY2026 and −3.5 percentage points against Q4 FY2025. Operating margin was 32.0% in Q4 FY2026, down −5.5 percentage points against Q3 FY2026 and −4.7 percentage points against Q4 FY2025. Management did not identify quarter-specific reasons for these changes. For FY2026, management attributed lower U.S. service revenue partly to one-time hurricane-related revenue in FY2025 and lower volume, while citing higher international revenue per car and volume for international growth.

Open questions

• What factors drove the lower Q4 FY2026 margins relative to Q3 FY2026 and Q4 FY2025?
• How much of the FY2026 change in U.S. service revenue reflected volume versus revenue per car?
• What was the duration and expected recurrence of the FY2025 hurricane-related revenue and costs?
• How will investments in held-to-maturity securities affect the use of cash and liquidity?

Sources

• Form 10-K filed September 29, 2026 — management’s discussion and analysis