CarGurus (NASDAQ:CARG) Releases Q1 2026 Earnings Guidance

CarGurus (NASDAQ:CARG) issued an update on its first quarter 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 0.520-0.580 for the period, compared to the consensus earnings per share estimate of 0.560. The company issued revenue guidance of $240.5 million-$245.5 million, compared to the consensus revenue estimate of $238.8 million. CarGurus also updated its FY 2026 guidance to EPS.

Analyst Ratings Changes

CARG has been the topic of several research reports. Wall Street Zen lowered shares of CarGurus from a “buy” rating to a “hold” rating in a research note on Sunday. Jefferies Financial Group increased their price objective on CarGurus from $42.00 to $45.00 and gave the stock a “buy” rating in a report on Thursday, December 11th. BTIG Research upped their target price on CarGurus from $39.00 to $44.00 and gave the stock a “buy” rating in a research report on Tuesday, December 30th. Weiss Ratings reiterated a “hold (c+)” rating on shares of CarGurus in a report on Monday, December 29th. Finally, Citigroup increased their price objective on CarGurus from $37.00 to $41.00 and gave the stock a “neutral” rating in a report on Tuesday, October 28th. Five equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company’s stock. According to MarketBeat, CarGurus currently has a consensus rating of “Hold” and a consensus target price of $40.23.

CarGurus Stock Up 3.2%

Shares of NASDAQ:CARG traded up $0.90 during trading on Thursday, reaching $29.20. The stock had a trading volume of 2,878,626 shares, compared to its average volume of 1,099,929. The stock has a fifty day simple moving average of $34.61 and a two-hundred day simple moving average of $34.85. CarGurus has a 52 week low of $24.65 and a 52 week high of $39.42. The firm has a market capitalization of $2.79 billion, a price-to-earnings ratio of 19.86, a P/E/G ratio of 1.04 and a beta of 1.35.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings results on Thursday, February 19th. The company reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.02. CarGurus had a return on equity of 41.31% and a net margin of 16.41%.CarGurus has set its Q1 2026 guidance at 0.520-0.580 EPS. On average, analysts forecast that CarGurus will post 1.41 EPS for the current year.

Insider Buying and Selling at CarGurus

In other news, CEO Jason Trevisan sold 16,548 shares of the firm’s stock in a transaction that occurred on Tuesday, December 23rd. The stock was sold at an average price of $39.02, for a total value of $645,702.96. Following the completion of the sale, the chief executive officer directly owned 630,483 shares of the company’s stock, valued at $24,601,446.66. This trade represents a 2.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Jennifer Ladd Hanson sold 2,358 shares of CarGurus stock in a transaction that occurred on Wednesday, December 31st. The stock was sold at an average price of $38.10, for a total value of $89,839.80. Following the transaction, the insider owned 50,466 shares of the company’s stock, valued at $1,922,754.60. This represents a 4.46% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 49,003 shares of company stock worth $1,858,494 over the last quarter. 16.99% of the stock is currently owned by insiders.

Key CarGurus News

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Beat on quarterly results: CarGurus reported $0.63 EPS vs. $0.61 expected and highlighted strong margins and ROE, supporting profitability story and valuation. Press Release
• Positive Sentiment: Revenue guidance ahead of consensus: Q1 revenue guided to $240.5M–$245.5M (consensus ~$238.8M) and FY revenue guided to ~$997.7M–$1.0B (consensus ~$970.9M) — revenue strength may offset modest EPS guide risk and supports top‑line growth expectations. (Guidance issued 2/19)
• Positive Sentiment: Large buybacks and strong FY results: CarGurus reported 2025 revenue +14% YoY, GAAP net income +53% YoY, and repurchased ~$350M of shares in 2025 while launching a new $250M repurchase program for 2026 — a clear capital‑return signal that can support the share price. GlobeNewswire Release
• Positive Sentiment: Investor/analyst interest in AI initiatives: Multiple outlets note upside from accelerating AI adoption at CarGurus, which investors view as a growth and efficiency lever. Investing.com MSN AI Coverage
• Neutral Sentiment: Q1 EPS guide ~0.520–0.580 vs. consensus 0.560 — midpoint slightly below consensus but the range overlaps Street estimates; impact depends on how investors weight revenue vs. EPS. (Guidance issued 2/19)
• Neutral Sentiment: Short interest data in the feed appears to be incomplete or inaccurate (zeros/NaN) and shows no clear signal for increased short pressure at this time.
• Negative Sentiment: Alleged data breach: Reports claim the “ShinyHunters” group obtained ~1.7M CarGurus records; potential reputational, customer‑notification, remediation and regulatory costs could surface if confirmed. MSN: Data Breach

Institutional Trading of CarGurus

A number of hedge funds have recently modified their holdings of CARG. Brown Brothers Harriman & Co. bought a new position in CarGurus in the 3rd quarter valued at about $46,000. EverSource Wealth Advisors LLC grew its position in shares of CarGurus by 491.7% in the second 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 bought a new position in shares of CarGurus during the second quarter worth approximately $87,000. Parkside Financial Bank & Trust lifted its holdings in 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 bought a new stake in CarGurus in the 3rd quarter valued at $148,000. Institutional investors and hedge funds own 86.90% of the company’s stock.

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.