Why Copart Stock Dropped Today
The Motley Fool
by newsfeedback@fool.com (Rich Smith)February 20, 2026
AI-Generated Deep Dive Summary
Copart stock dropped 4.5% by midday Friday after missing Wall Street’s expectations for its fiscal Q2 2026 earnings. The company reported earning $0.36 per share on $1.12 billion in revenue, slightly below the projected $0.39 per share and $1.15 billion in sales forecasted by analysts. This underperformance contributed to the stock’s decline, though it remained relatively stable compared to broader market trends.
Copart, a leading online auction platform for used and salvage vehicles, has faced challenges in recent quarters as demand for recycled parts and wrecked cars remains uneven. While revenue came in close to expectations, the company’s net margins were squeezed due to higher operational costs and supply chain disruptions. These factors weighed on investor confidence, particularly among those closely tracking the automotive industry.
The earnings miss highlights broader economic concerns impacting the used car market. With interest rates rising, consumers are showing more caution when it comes to purchasing vehicles, including used and salvage cars. This trend could continue to pressure Copart’s revenue growth in the near term, as higher borrowing costs make it harder for buyers to justify spending on less-than-perfect vehicles.
For investors, this development underscores the importance of staying attuned to macroeconomic factors influencing even niche sectors like automotive recycling. While Copart remains a key player in its industry, the company’s ability to adapt to shifting market dynamics will be critical in determining its long-term performance.
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Originally published on The Motley Fool on 2/20/2026