CarGurus Posts $0.58 EPS, 15% Revenue Growth and $175M Buybacks
CarGurus reported Q1 2026 EPS of $0.58, beating estimates and revenues of $243.6 million, up 15% year-over-year. The company remains debt-free and repurchased $175 million of shares this quarter as RBC Capital raised its price target to $35 on continued Outperform rating.
1. Strong Q1 Financial Results
CarGurus delivered Q1 2026 earnings of $0.58 per share, surpassing consensus by $0.02, driven by robust demand across its online automotive marketplace. Revenue climbed to $243.56 million, marking a 15% increase from $225.16 million a year ago and representing the fourth consecutive quarter of upside surprises.
2. Shareholder Returns and Financial Position
The company maintains a debt-free balance sheet and allocated $175 million to share repurchases during the quarter, bringing cumulative buybacks to 29% of shares outstanding since December 2022. This aggressive capital return underscores management’s commitment to enhancing shareholder value.
3. Analyst Rating and Price Target
RBC Capital reiterated its Outperform rating on CarGurus and lifted the price target to $35, up from $34, reflecting confidence in the company’s growth trajectory and strong fundamentals. At the time of the upgrade, the stock traded at $33.16, implying potential upside for investors.