CarGurus (NASDAQ:CARG) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

CarGurus (NASDAQ:CARG) announced its earnings results on Thursday. The company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02, FiscalAI reports. The company had revenue of $243.56 million for the quarter, compared to analyst estimates of $243.12 million. CarGurus had a return on equity of 48.98% and a net margin of 15.57%.The firm’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same period in the prior year, the company posted $0.46 EPS. CarGurus updated its Q2 2026 guidance to 0.570-0.640 EPS.

Here are the key takeaways from CarGurus’ conference call:

• Q1 revenue grew 15% YoY to $244 million and adjusted EBITDA rose 17% to $80 million with a 33% EBITDA margin; management reiterated 2026 revenue growth guidance of 10–13%.
• Dealer-facing AI products are driving adoption and engagement — PriceVantage reached several hundred paying dealers with top users seeing a 117% faster turn time and 47% higher VDP views, Shopper Signals engaged over 8,000 dealers since its April launch, and Discover leads grew 52% QoQ.
• International momentum was strong, with U.K. and Canada revenue up 39% YoY, which management says is driving share gains in those markets.
• The company repurchased about $175 million in Q1 under a $250 million program (leaving $72 million in cash) and expects full‑year adjusted EBITDA margins to compress ~1.5–2.5 percentage points as it increases product, tech and AI investments.

CarGurus Stock Performance

Shares of NASDAQ:CARG traded down $3.42 during midday trading on Friday, hitting $34.74. The company’s stock had a trading volume of 1,907,451 shares, compared to its average volume of 988,883. The business’s 50 day simple moving average is $34.59 and its 200 day simple moving average is $34.63. The company has a market cap of $3.31 billion, a P/E ratio of 22.86, a price-to-earnings-growth ratio of 1.42 and a beta of 1.28. CarGurus has a 12-month low of $26.39 and a 12-month high of $39.42.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on CARG. UBS Group lifted their target price on shares of CarGurus from $33.00 to $37.00 and gave the stock a “neutral” rating in a research note on Friday. Wall Street Zen lowered shares of CarGurus from a “buy” rating to a “hold” rating in a report on Sunday, February 15th. DA Davidson dropped their price objective on shares of CarGurus from $37.50 to $33.50 and set a “neutral” rating on the stock in a report on Friday, February 20th. Oppenheimer dropped their price objective on shares of CarGurus from $40.00 to $38.00 and set an “outperform” rating on the stock in a report on Tuesday, February 24th. Finally, Needham & Company LLC increased their target price on CarGurus from $37.00 to $43.00 and gave the company a “buy” rating in a research report on Friday. Five analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $38.14.

CarGurus News Summary

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: CarGurus reported Q1 2026 EPS of $0.58, topping estimates, while revenue of $243.6 million was also slightly above expectations and up 8.2% year over year. Q1 Earnings Report and Conference Call
• Positive Sentiment: The company said Q1 adjusted EBITDA came in above the high end of guidance, and it repurchased $175 million of stock during the quarter, signaling strong cash generation and capital return. CarGurus Announces First Quarter 2026 Results
• Positive Sentiment: Needham raised its price target on CarGurus from $37 to $43 and kept a Buy rating, while JPMorgan also lifted its target from $36 to $38, reinforcing optimism around the stock. Analyst price target updates
• Neutral Sentiment: CarGurus’ Q2 guidance calls for EPS of $0.57 to $0.64 and revenue of $247 million to $252 million, which is broadly in line with Street expectations and suggests steady near-term growth. Q1 Results and Guidance
• Negative Sentiment: Despite the earnings beat, some market commentary noted the stock sold off after the report, suggesting investors may be focusing on guidance and valuation rather than just the headline beat. Market reaction article

Insider Buying and Selling at CarGurus

In other news, CMO Dafna Sarnoff sold 5,445 shares of the firm’s stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total value of $179,902.80. Following the transaction, the chief marketing officer directly owned 134,369 shares of the company’s stock, valued at approximately $4,439,551.76. This trade represents a 3.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Matthew Todd Quinn sold 4,341 shares of the firm’s stock in a transaction dated Thursday, April 2nd. The stock was sold at an average price of $33.04, for a total transaction of $143,426.64. Following the completion of the transaction, the chief technology officer directly owned 246,098 shares in the company, valued at approximately $8,131,077.92. This represents a 1.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 12,852 shares of company stock valued at $431,053. Corporate insiders own 16.99% of the company’s stock.

Institutional Trading of CarGurus

Several large investors have recently added to or reduced their stakes in CARG. HighTower Advisors LLC raised its position in shares of CarGurus by 7.8% during the 4th quarter. HighTower Advisors LLC now owns 7,094 shares of the company’s stock valued at $272,000 after buying an additional 514 shares during the period. Illinois Municipal Retirement Fund raised its position in shares of CarGurus by 1.6% during the 4th quarter. Illinois Municipal Retirement Fund now owns 43,583 shares of the company’s stock valued at $1,671,000 after buying an additional 679 shares during the period. Parkside Financial Bank & Trust raised its position in shares of CarGurus by 48.0% during the 4th quarter. Parkside Financial Bank & Trust now owns 3,018 shares of the company’s stock valued at $116,000 after buying an additional 979 shares during the period. Zacks Investment Management increased its position in shares of CarGurus by 3.6% during the 3rd quarter. Zacks Investment Management now owns 35,239 shares of the company’s stock worth $1,312,000 after purchasing an additional 1,220 shares during the last quarter. Finally, Brown Brothers Harriman & Co. acquired a new stake in shares of CarGurus during the 3rd quarter worth about $46,000. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

About CarGurus

CarGurus, Inc operates an online automotive marketplace designed to connect buyers and sellers of new and used vehicles. Through its proprietary search engine and data-driven pricing tools, the platform enables consumers to compare listings, assess fair market values and locate local dealers offering competitive deals. CarGurus also provides detailed vehicle history reports, dealer reviews and financing options to streamline the car-shopping process for both private parties and franchised dealerships.

The company’s core product offerings include Instant Market Value (IMV), which leverages pricing algorithms to help buyers identify over- or under-priced vehicles, as well as dealer subscription services that grant automotive retailers access to lead generation tools, targeted advertising and dynamic pricing insights.