CarGurus (NASDAQ:CARG) Releases Q3 2026 Earnings Guidance

Posted by on Aug 8th, 2026

CarGurus (NASDAQ:CARG – Get Free Report) issued an update on its third quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.630-0.690 for the period, compared to the consensus EPS 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 Trading Up 7.2%

NASDAQ CARG opened at $38.99 on Friday. The firm has a market capitalization of $3.52 billion, a P/E ratio of 21.19, a price-to-earnings-growth ratio of 1.33 and a beta of 1.17. The firm’s fifty day moving average price is $32.85 and its two-hundred day moving average price is $32.65. CarGurus has a 1 year low of $26.39 and a 1 year high of $41.22.

CarGurus (NASDAQ:CARG – Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.61 by $0.05. The company had revenue of $250.97 million for the quarter, compared to analyst estimates of $249.85 million. CarGurus had a net margin of 18.06% and a return on equity of 59.79%. CarGurus’s revenue for the quarter was up 7.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.57 EPS. CarGurus has set its Q3 2026 guidance at 0.630-0.690 EPS. On average, research analysts anticipate that CarGurus will post 2.11 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages have recently commented on CARG. JPMorgan Chase & Co. lifted their target price on CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a research note on Friday, May 8th. Piper Sandler reaffirmed a “sector weight” rating on shares of CarGurus in a report on Friday, June 12th. Weiss Ratings downgraded shares of CarGurus from a “hold (c+)” rating to a “hold (c)” rating in a report on Wednesday, May 13th. BTIG Research raised their target price on shares of CarGurus from $40.00 to $41.00 and gave the stock a “buy” rating in a research note on Friday. Finally, Needham & Company LLC lifted their target price on shares of CarGurus from $43.00 to $44.00 and gave the stock a “buy” rating in a report on Friday. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $40.25.

Get Our Latest Research Report on CarGurus

Insider Activity at CarGurus

In related news, General Counsel Javier Zamora sold 8,072 shares of the stock in a transaction that occurred on 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 in the company, valued at approximately $3,043,391.33. This trade represents a 7.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Jennifer Ladd Hanson sold 2,499 shares of CarGurus stock in a transaction that occurred on 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 directly owned 92,894 shares in the company, valued at $3,210,416.64. This trade represents a 2.62% 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. Insiders sold a total of 31,764 shares of company stock valued at $1,071,649 over the last quarter. 18.19% of the stock is owned by corporate insiders.

CarGurus News Summary

Here are the key news stories impacting CarGurus this week:

  • Positive Sentiment: Q2 earnings beat expectations: CarGurus reported adjusted earnings of $0.66 per share, up from $0.57 a year earlier and above analysts’ estimates of approximately $0.61–$0.62. Revenue reached $251.0 million, slightly exceeding consensus expectations and increasing 13% year over year. CarGurus Beats Q2 Earnings and Revenue Estimates
  • Positive Sentiment: Strong profitability and cash generation: Second-quarter GAAP net income from continuing operations was $49.2 million. Adjusted EBITDA was $84.7 million, near the high end of company guidance, while operating cash flow was $94.6 million and free cash flow was $87.7 million. CarGurus Announces Second Quarter 2026 Results
  • Positive Sentiment: Above-consensus Q3 outlook: CarGurus guided for third-quarter EPS of $0.63–$0.69, ahead of the $0.61 analyst consensus. Revenue guidance of $253.5 million–$258.5 million was broadly consistent with expectations, suggesting continued year-over-year growth. CarGurus Earnings Report
  • Positive Sentiment: Share repurchases support per-share value: The company repurchased $29.2 million of stock during Q2. Since December 2022, cumulative repurchases have exceeded 30% of shares outstanding, which can support EPS and shareholder returns. CarGurus Q2 Results Presentation
  • Neutral Sentiment: Revenue was only modestly above estimates, and the available report does not provide a clear updated full-year 2026 EPS target. Investors may therefore focus on future growth trends and the company’s ability to sustain its strong margins and cash flow.

Institutional Trading of CarGurus

Large investors have recently bought and sold shares of the business. HighTower Advisors LLC lifted its position in CarGurus by 7.8% in the 4th quarter. HighTower Advisors LLC now owns 7,094 shares of the company’s stock valued at $272,000 after acquiring an additional 514 shares in the last quarter. Illinois Municipal Retirement Fund boosted its stake in 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 purchasing an additional 679 shares during the last quarter. Parkside Financial Bank & Trust increased 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 in the last quarter. Zacks Investment Management increased its holdings in 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 in the last quarter. Finally, Brown Brothers Harriman & Co. bought a new stake in CarGurus during the 3rd quarter worth approximately $46,000. 86.90% of the stock is owned by institutional investors and hedge funds.

About CarGurus

(Get Free Report)

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.

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