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Earnings Report: Why Copart Crashed 11% After Earnings | Q2 2026

Copart's Q2 2026 earnings report revealed a significant 11% stock price drop due to a 3.6% revenue decline and a 10% decrease in diluted EPS. While US service revenue contracted, international revenue grew, though at the cost of lower operating income. The company's cash pile nearly doubled to $5.1 billion, primarily from liquidating securities, raising questions about management's strategy amidst potential fear or greed-driven actions.

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Copart's stock dropped 11% after reporting a 3.6% revenue decline and a 10% EPS decrease, indicating a significant contraction in its core US business.

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