Copart Inc (NASDAQ:CPRT) stock fell 2.57% (As on November 21, 11:52:55 AM UTC-4, Source: Google Finance) after the company reported first quarter revenue that missed analyst expectations, despite posting better-than-expected earnings. Net income attributable to Copart rose 11.5% to $403.7 million compared to the same quarter last year. The company’s gross profit increased 4.9% to $537 million, while operating income grew 6% to $430.7 million. Gross margin improved 184 basis points to 46.5%. The company’s service revenues, which make up the bulk of total revenue, increased marginally by 0.6% to $991.8 million. Vehicle sales revenue rose 1.7% to $163.2 million compared to the same period last year. Copart’s international segment showed stronger growth than its U.S. operations, with international service revenues increasing 7.9% YoY to $136.3 million, while U.S. service revenues slightly decreased by 0.5% to $855.5 million. The company ended the quarter with $5.23 billion in cash, cash equivalents, and restricted cash, a significant increase from $2.78 billion at the end of July 2025.

Moreover, for the first quarter, total global units sold decreased 6.7% with fee units decreasing 6.3%. During the prior year period, Copart responded to several catastrophic events around the world from Hurricanes Helene and Milton to catastrophic flooding in the Middle East, Germany, and Brazil. Normalizing for the impact of these cat events, the global units sold decreased 4.6%. Global insurance units declined 8.1%, or 5.6% adjusted for cat. Global non-insurance units declined 1.5%. As of the end of the quarter, these trends were the main driver of the U.S. inventory decline of just over 17% from the year-ago period. While U.S. assignments declined 9.5%, or low single-digit comp excluding CAT. The company also continues to invest in Purple Wave, the online equipment auction platform. U.S. segment operating margin was 39.4%, reflecting a nearly 200 basis point increase from the prior year period. Gross profit for the International segment grew 13%, and operating income was $56 million, a 27.5% operating margin, which continues to expand even as the company invest in yard capacity, technology, and logistics infrastructure to support the long-term international growth.

CPRT in the first quarter of FY26 has reported the adjusted earnings per share of 41 cents, beating the analysts’ estimates for the adjusted earnings per share of 40 cents. The company had reported the adjusted revenue growth of 11.7 percent to $1.16 billion in the first quarter of FY26, missing the analysts’ estimates for revenue of $1.18 billion.