CarGurus (NASDAQ:CARG) Releases Q3 2026 Earnings Guidance

CarGurus (NASDAQ:CARG) updated its third quarter 2026 earnings guidance on Thursday. The company provided EPS guidance of 0.630-0.690 for the period, compared to the consensus estimate of 0.610. The company issued revenue guidance of $253.5 million-$258.5 million, compared to the consensus revenue estimate of $256.9 million. CarGurus also updated its FY 2026 guidance to EPS.

CarGurus Price Performance

Shares of CARG stock opened at $36.38 on Friday. The stock’s fifty day moving average price is $32.66 and its 200 day moving average price is $32.61. CarGurus has a 1-year low of $26.39 and a 1-year high of $39.42. The company has a market cap of $3.28 billion, a price-to-earnings ratio of 23.93, a price-to-earnings-growth ratio of 1.33 and a beta of 1.17.

CarGurus (NASDAQ:CARG) last issued its quarterly earnings results on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.61 by $0.05. The business had revenue of $250.97 million for the quarter, compared to analyst estimates of $249.85 million. CarGurus had a return on equity of 54.42% and a net margin of 15.57%.The company’s revenue was up 7.2% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.57 earnings per share. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. As a group, equities research analysts anticipate that CarGurus will post 2.11 earnings per share for the current year.

Analysts Set New Price Targets

CARG has been the subject of a number of analyst reports. JPMorgan Chase & Co. upped their price target on CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a report on Friday, May 8th. UBS Group set a $35.00 price objective on CarGurus in a research report on Thursday, May 28th. Barclays upped their target price on CarGurus from $35.00 to $40.00 and gave the stock an “overweight” rating in a research note on Tuesday, July 21st. Needham & Company LLC boosted their price target on shares of CarGurus from $37.00 to $43.00 and gave the stock a “buy” rating in a report on Friday, May 8th. Finally, Freedom Capital raised shares of CarGurus to a “strong-buy” rating in a report on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat, CarGurus presently has a consensus rating of “Moderate Buy” and a consensus price target of $38.55.

Insider Activity

In other CarGurus news, insider Jennifer Ladd Hanson sold 2,499 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $34.56, for a total transaction of $86,365.44. Following the completion of the transaction, the insider owned 92,894 shares of the company’s stock, valued at $3,210,416.64. This trade represents a 2.62% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, General Counsel Javier Zamora sold 8,072 shares of CarGurus stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $29.53, for a total transaction of $238,366.16. Following the sale, the general counsel owned 103,061 shares of the company’s stock, valued at approximately $3,043,391.33. This represents a 7.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 31,764 shares of company stock valued at $1,071,649 in the last quarter. Insiders own 18.19% of the company’s stock.

More CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: CarGurus reported adjusted earnings of $0.66 per share, above analyst estimates of approximately $0.61-$0.62 and up from $0.57 a year ago. Revenue reached $251.0 million, roughly in line with or slightly above expectations and up 13% year over year. CarGurus Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Operating performance was solid: adjusted EBITDA was $84.7 million, operating cash flow was $94.6 million and free cash flow was $87.7 million. These results were toward the high end of the company’s guidance ranges. CarGurus Announces Second Quarter 2026 Results
• Positive Sentiment: Third-quarter adjusted EPS guidance of $0.63-$0.69 is above the analyst consensus of $0.61. Revenue guidance of $253.5 million-$258.5 million is broadly consistent with the $256.9 million consensus, suggesting the main upside is coming from profitability rather than a major revenue forecast increase. CarGurus Earnings and Guidance Update
• Positive Sentiment: CarGurus repurchased $29.2 million of stock during the quarter. Buybacks since December 2022 now exceed 30% of shares outstanding, supporting per-share results and signaling management’s confidence in the company’s valuation and cash generation. CarGurus Second Quarter Results
• Neutral Sentiment: The earnings release provided no clearly stated full-year 2026 EPS figure in the available guidance update, leaving investors to assess whether the third-quarter outlook will translate into a meaningful increase to full-year expectations.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Brown Brothers Harriman & Co. purchased a new stake in CarGurus during the 3rd quarter worth about $46,000. EverSource Wealth Advisors LLC increased its position in shares of CarGurus by 491.7% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,639 shares of the company’s stock valued at $55,000 after purchasing an additional 1,362 shares during the last quarter. Quantbot Technologies LP acquired a new stake in shares of CarGurus in the 2nd quarter valued at $87,000. Parkside Financial Bank & Trust lifted 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 worth $116,000 after purchasing an additional 979 shares during the last quarter. Finally, Quadrant Capital Group LLC purchased a new stake in shares of CarGurus during the 3rd quarter worth $148,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

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.