Is Copart profitable in 2026?

Yes. Copart posted net income of $402.4 million in fiscal Q3 2026 (ended April 30, 2026) on revenue of $1.237 billion, and nine-month FY2026 net income was about $1.2 billion, continuing a long streak of profitability with no debt on the balance sheet.

Who is Copart's biggest competitor?

IAA (Insurance Auto Auctions), now part of RB Global (formerly Ritchie Bros.), is Copart's only direct head-to-head rival in salvage vehicle auctions, a rivalry that has held steady as a duopoly for over three decades through 2026, per industry analysis dated March 19, 2026.

Why did Copart's stock drop in 2026?

Copart shares fell 8.02% to $28.10 on June 29, 2026 after CEO Jeff Liaw announced he would step down effective July 31, 2026, with founder-era CEO Jay Adair returning. Shares hit a 52-week low of $26.85 on July 21, 2026, well below the $64.38 all-time high.

Could AI replace Copart's business?

Unlikely to replace the core marketplace. Copart itself deploys LLM tools for insurer decision-support (disclosed September 2025), and AI-native rivals like Self Inspection ($10M raised July 16, 2026) only target the ancillary vehicle-inspection slice, not Copart's 280+ yard network, insurer contracts, or 1 million buyer base.

Copart is publicly traded on NASDAQ under CPRT with no controlling parent; institutional investors held about 85.78% of shares as of mid-2026, per MarketBeat data dated July 21, 2026. Market capitalization was roughly $25.1 billion as of July 22, 2026.

Is Copart losing market share to competitors in 2026?

No clear evidence of competitive share loss. Softer US insurance-unit volumes (down 4.2% in Q3 FY2026, ended April 30, 2026) reflect fewer insured claims industry-wide, not gains by IAA/RB Global; Copart still holds an estimated 35 to 50% of US salvage auction volume per March 2026 analysis.

E-commerce and marketplaces · United States

Copart

copart.com ↗

Copart runs online salvage-car auctions through 280+ physical yards in 11+ countries.

Hard to displace

Assessed 22 July 2026 · Evidence as of 22 July 2026

Strong structural protection; the business model survives ai pressure.

On the recordSince 22 July 2026 · Checkable from Aug-Sept 2026 · Every call on the record Checkpoint: Q4 FY2026 earnings, first full quarter under returning CEO Jay Adair

The call

Copart's yards, titles, and insurer contracts keep the business intact while the stock and volume dip get sorted out, with no AI or rival yet able to move a wrecked car without them.

Copart runs salvage auctions, buying damaged cars from insurance companies and selling them to buyers worldwide through 280+ physical yards across 11 countries. It is hard to replace because it has locked-in contracts with major insurers for years, operates in each state's regulated title system, and built a network of roughly 1 million regular buyers, making IAA (its only real rival for 30+ years) the only serious challenger. A smartphone inspection app called Self Inspection could nibble at the edges by letting appraisers check cars remotely, but that targets only the small assessment side, not the core auction marketplace itself. What matters most: whether CEO Jay Adair, who returned July 31, 2026, pushes the company into new growth areas like AI-driven claims handling and international expansion, or plays it safe and harvests cash. The company printed $1.55 billion in profit on $4.65 billion revenue with no debt, so it has room to move either way.

Why

AI pressure: Self Inspection (AI phone-based vehicle-condition assessment startup). AI inspection apps could grab the appraisal step, but they still need Copart's yards, titles, and buyers to sell the car. Could AI do the core job? Unlikely.

Bigger players: IAA (now part of RB Global / Ritchie Bros.). Only real head-to-head rival for 30+ years, still stuck at number two, no sign of taking US share from Copart. Could a giant copy it? No, they are blocked.

What protects it. Owning the physical yards, state title paperwork, and long insurer contracts that a phone app or new entrant cannot replicate fast.

What would change this call

Copart's Q4 FY2026 earnings report (Aug-Sept 2026) under returning CEO Jay Adair. Shows whether Adair pushes international/AI growth or manages for cash.
US insurance total-loss volume trend over next two quarterly reports after Q3 FY2026's 4.2% drop. Reveals whether the salvage-volume decline is cyclical or structural.
Whether Self Inspection or similar AI-inspection startups sign deals with top-3 US insurers. Would indicate the appraisal/yard-services slice is being disintermediated.

Key numbers

Net income $1.55B on $4.65B revenue (FY2025)
US insurance unit volume down 4.2% (Q3 FY2026)
Stock at 52-week low $26.85, down from $64.38 high (2026-07-22)

Named risks

CEO transition uncertainty after Liaw's June 29, 2026 exit and Adair's return. Severity: high
Investor litigation from Pomerantz LLP and Bragar Eagel & Squire opened July 21-22, 2026. Severity: medium
US insurance claims/total-loss unit volume softness, down 4.2% in Q3 FY2026. Severity: medium
AI-native inspection startups like Self Inspection nibbling ancillary appraisal revenue. Severity: low
Conflicting headcount data across sources suggesting workforce growth has plateaued. Severity: low

Rivals, as read in July 2026

Rival	Direction	Evidence
IAA / RB Global	contesting	Stable duopoly for 3+ decades as of March 2026; no evidence of share shift either way
Self Inspection (AI startup)	gaining on	Raised $10M led by Sandberg July 16, 2026, targeting AI vehicle-condition assessment niche
Manheim (Cox Automotive)	contesting	Dominant in dealer wholesale clean-title remarketing, structurally separate from salvage channel
KAR Global/ADESA	contesting	Focused on dealer whole-car remarketing, less salvage-focused per March 2026 analysis

Questions people ask

Is Copart profitable in 2026?: Yes. Copart posted net income of $402.4 million in fiscal Q3 2026 (ended April 30, 2026) on revenue of $1.237 billion, and nine-month FY2026 net income was about $1.2 billion, continuing a long streak of profitability with no debt on the balance sheet.
Who is Copart's biggest competitor?: IAA (Insurance Auto Auctions), now part of RB Global (formerly Ritchie Bros.), is Copart's only direct head-to-head rival in salvage vehicle auctions, a rivalry that has held steady as a duopoly for over three decades through 2026, per industry analysis dated March 19, 2026.
Why did Copart's stock drop in 2026?: Copart shares fell 8.02% to $28.10 on June 29, 2026 after CEO Jeff Liaw announced he would step down effective July 31, 2026, with founder-era CEO Jay Adair returning. Shares hit a 52-week low of $26.85 on July 21, 2026, well below the $64.38 all-time high.
Could AI replace Copart's business?: Unlikely to replace the core marketplace. Copart itself deploys LLM tools for insurer decision-support (disclosed September 2025), and AI-native rivals like Self Inspection ($10M raised July 16, 2026) only target the ancillary vehicle-inspection slice, not Copart's 280+ yard network, insurer contracts, or 1 million buyer base.
Who owns Copart?: Copart is publicly traded on NASDAQ under CPRT with no controlling parent; institutional investors held about 85.78% of shares as of mid-2026, per MarketBeat data dated July 21, 2026. Market capitalization was roughly $25.1 billion as of July 22, 2026.
Is Copart losing market share to competitors in 2026?: No clear evidence of competitive share loss. Softer US insurance-unit volumes (down 4.2% in Q3 FY2026, ended April 30, 2026) reflect fewer insured claims industry-wide, not gains by IAA/RB Global; Copart still holds an estimated 35 to 50% of US salvage auction volume per March 2026 analysis.

Timeline

2026-07-21Stock hits 52-week low $26.85; law firms open investor investigations into CEO transition
2026-07-16AI inspection startup Self Inspection raises $10M led by Sheryl Sandberg
2026-07-06New CEO Jay Adair holds investor call outlining leadership priorities
2026-06-29CEO Jeff Liaw to step down July 31; Jay Adair returns as CEO; stock falls 8.02%
2026-05-25Q3 FY2026 earnings call; US total-loss frequency hit 23.6%, insurance units down 4.2%
2026-04-30Fiscal Q3 2026 ends: revenue $1.237B, net income $402.4M, liquidity $5.5B
2025-09-01Copart discloses LLM-based decision-support and customer-support tools on Q4 FY2025 call
2025-07-31FY2025 ends: revenue ~$4.65B, net income ~$1.55B
1994-03-17Copart IPO on NASDAQ at $12 per share

Revision history

22 July 2026

First assessed. Hard to displace. The text above is fixed as of this date and is not edited afterwards.

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