CarGurus (NASDAQ:CARG) Updates Q2 2026 Earnings Guidance

CarGurus (NASDAQ:CARG) updated its second quarter 2026 earnings guidance on Thursday. 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 Price Performance

Shares of NASDAQ:CARG opened at $34.74 on Friday. The company’s 50-day moving average price is $34.59 and its two-hundred day moving average price is $34.63. CarGurus has a one year low of $26.39 and a one year high of $39.42. The stock has a market capitalization of $3.31 billion, a PE ratio of 22.86, a price-to-earnings-growth ratio of 1.42 and a beta of 1.28.

CarGurus (NASDAQ:CARG) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.56 by $0.02. The firm had revenue of $243.56 million during the quarter, compared to the consensus estimate of $243.12 million. CarGurus had a return on equity of 48.98% and a net margin of 15.57%.The business’s revenue was up 8.2% compared to the same quarter last year. During the same period last year, the company earned $0.46 earnings per share. CarGurus has set its Q2 2026 guidance at 0.570-0.640 EPS. On average, analysts anticipate that CarGurus will post 2.06 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on CARG shares. Wall Street Zen upgraded CarGurus from a “hold” rating to a “buy” rating in a research note on Saturday. Oppenheimer reduced their price target on CarGurus from $40.00 to $38.00 and set an “outperform” rating for the company in a research note on Tuesday, February 24th. JPMorgan Chase & Co. boosted their price target on CarGurus from $36.00 to $38.00 and gave the company a “neutral” rating in a research note on Friday. BTIG Research reduced their price target on CarGurus from $44.00 to $37.00 and set a “buy” rating for the company in a research note on Friday, February 20th. Finally, UBS Group boosted their price target on CarGurus from $33.00 to $37.00 and gave the company a “neutral” rating in a research note on Friday. Five research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $38.14.

Insiders Place Their Bets

In other CarGurus news, Director Stephen Kaufer bought 30,766 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The shares were bought at an average price of $32.50 per share, for a total transaction of $999,895.00. Following the transaction, the director directly owned 323,939 shares in the company, valued at approximately $10,528,017.50. This trade represents a 10.49% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CMO Dafna Sarnoff sold 5,445 shares of the company’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 sale, the chief marketing officer owned 134,369 shares in the company, valued at approximately $4,439,551.76. The trade was a 3.89% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 12,852 shares of company stock worth $431,053 over the last 90 days. Corporate insiders own 16.99% of the company’s stock.

Key Headlines Impacting CarGurus

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

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. purchased a new stake in shares of CarGurus in the third quarter worth approximately $46,000. EverSource Wealth Advisors LLC raised its stake 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 worth $55,000 after purchasing an additional 1,362 shares during the last quarter. Quantbot Technologies LP purchased a new stake in shares of CarGurus in the second quarter worth approximately $87,000. Parkside Financial Bank & Trust raised its stake in shares of CarGurus by 48.0% in the fourth 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 in the third quarter worth approximately $148,000. 86.90% of the stock is owned by institutional investors and hedge funds.

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.