CarGurus (NASDAQ:CARG) Releases Q2 2026 Earnings Guidance

CarGurus (NASDAQ:CARG) issued an update on its second quarter 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 0.570-0.640 for the period, compared to the consensus EPS estimate of 0.580. The company issued revenue guidance of $247.0 million-$252.0 million, compared to the consensus revenue estimate of $249.2 million. CarGurus also updated its FY 2026 guidance to EPS.

CarGurus Trading Down 8.1%

Shares of NASDAQ:CARG traded down $3.11 on Friday, reaching $35.06. 887,402 shares of the company were exchanged, compared to its average volume of 1,208,807. CarGurus has a 1-year low of $26.39 and a 1-year high of $39.42. The firm has a market cap of $3.34 billion, a price-to-earnings ratio of 22.62, a price-to-earnings-growth ratio of 1.40 and a beta of 1.28. The company has a 50-day moving average of $34.59 and a 200-day moving average of $34.63.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.58 earnings per share for the quarter, topping analysts’ consensus estimates of $0.56 by $0.02. CarGurus had a net margin of 16.60% and a return on equity of 47.50%. The business had revenue of $243.56 million for the quarter, compared to analysts’ expectations of $243.12 million. During the same period in the prior year, the company posted $0.46 EPS. The business’s revenue for the quarter was up 8.2% on a year-over-year basis. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. As a group, analysts forecast that CarGurus will post 2.06 earnings per share for the current year.

Analyst Ratings Changes

CARG has been the topic of a number of recent analyst reports. Needham & Company LLC upped their price target on shares of CarGurus from $37.00 to $43.00 and gave the stock a “buy” rating in a research note on Friday. BTIG Research lowered their price target on shares of CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a research note on Friday, February 20th. Wall Street Zen cut shares of CarGurus from a “buy” rating to a “hold” rating in a research note on Sunday, February 15th. UBS Group reissued a “neutral” rating and issued a $37.00 price objective on shares of CarGurus in a research note on Friday. Finally, DA Davidson lowered their price objective on shares of CarGurus from $37.50 to $33.50 and set a “neutral” rating on the stock in a research note on Friday, February 20th. Five investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $38.14.

Insider Activity

In other CarGurus news, CTO Matthew Todd Quinn sold 4,341 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 transaction of $143,426.64. Following the sale, the chief technology officer directly owned 246,098 shares of the company’s stock, valued at $8,131,077.92. This trade represents a 1.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jennifer Ladd Hanson sold 2,499 shares of the stock in a transaction dated Tuesday, March 31st. The stock was sold at an average price of $35.61, for a total transaction of $88,989.39. Following the transaction, the insider owned 98,191 shares in the company, valued at approximately $3,496,581.51. The trade was a 2.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 12,852 shares of company stock valued at $431,053 over the last quarter. 16.99% of the stock is currently owned by company insiders.

Key CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q1 results: EPS beat and adjusted profitability outperformed guidance — CarGurus reported $0.58 EPS vs. $0.56 consensus, and non‑GAAP adjusted EBITDA came in above the high end of guidance, supporting margin strength. GlobeNewsWire: Q1 Results
• Positive Sentiment: Large share repurchases: management repurchased $175M of stock in Q1 (repurchases since Dec 2022 represent ~29% of shares outstanding), which is a strong capital‑return signal that can support the share price. GlobeNewsWire: Buybacks
• Positive Sentiment: Analyst upgrade/target lift: Needham raised its price target from $37 to $43 and maintained a Buy rating, signaling analyst confidence in upside versus current levels. Benzinga / The Fly: Needham PT Raise
• Neutral Sentiment: Q2 guidance roughly in line: management set Q2 EPS of $0.570–$0.640 (consensus ~$0.580) and revenue guidance $247–252M vs. consensus ~$249M — guidance is generally consistent with expectations but leaves a wide band. MarketBeat: Guidance & Call
• Neutral Sentiment: Marketing/strategy initiatives: coverage highlights marketing pushes (NASCAR Canada partnership and Confidence Awards) that could help customer acquisition and brand awareness over time but are not immediate revenue levers. Yahoo Finance: NASCAR Canada Push
• Negative Sentiment: GAAP net income decline and mixed investor reaction: GAAP net income from continuing operations fell ~23% YoY, and despite the beat, the stock pulled back after the release as investors digested the decline and guidance nuance. GlobeNewsWire: GAAP Net Income
• Negative Sentiment: Market reaction & headlines: several outlets noted the stock dropped after results despite in‑line sales and the EPS beat, reflecting investor focus on near‑term guidance and GAAP metrics. MSN: Stock Drops

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of CARG. Brown Brothers Harriman & Co. purchased a new position in shares of CarGurus during the 3rd quarter worth about $46,000. EverSource Wealth Advisors LLC lifted its holdings in shares of CarGurus by 491.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company’s stock worth $55,000 after acquiring an additional 1,362 shares during the period. Quantbot Technologies LP purchased a new position in shares of CarGurus during the 2nd quarter worth about $87,000. Parkside Financial Bank & Trust lifted its holdings 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 worth $116,000 after acquiring an additional 979 shares during the period. Finally, Quadrant Capital Group LLC purchased a new position in CarGurus in the third quarter valued at approximately $148,000. 86.90% of the stock is currently owned by hedge funds and other institutional investors.

CarGurus Company Profile

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.