CarGurus (NASDAQ:CARG) Releases Q2 2026 Earnings Guidance

CarGurus (NASDAQ:CARG) updated its second quarter 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 0.570-0.640 for the period, compared to the consensus 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.

Analyst Ratings Changes

A number of brokerages have recently weighed in on CARG. BTIG Research dropped their price target on CarGurus from $44.00 to $37.00 and set a “buy” rating on the stock in a research note on Friday, February 20th. UBS Group reiterated a “neutral” rating and issued a $37.00 price target on shares of CarGurus in a report on Friday. JPMorgan Chase & Co. increased their price target on shares of CarGurus from $36.00 to $38.00 and gave the stock a “neutral” rating in a report on Friday. Royal Bank Of Canada cut their price target on shares of CarGurus from $40.00 to $34.00 and set an “outperform” rating on the stock in a report on Friday, February 20th. Finally, DA Davidson cut their price target on shares of CarGurus from $37.50 to $33.50 and set a “neutral” rating on the stock in a report on Friday, February 20th. Five analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $38.14.

CarGurus Trading Down 7.4%

Shares of NASDAQ:CARG traded down $2.81 on Friday, hitting $35.35. The company had a trading volume of 979,536 shares, compared to its average volume of 1,210,013. CarGurus has a 52-week low of $26.39 and a 52-week high of $39.42. The business has a 50 day moving average of $34.59 and a 200 day moving average of $34.63. The company has a market cap of $3.36 billion, a PE ratio of 22.83, a PEG ratio of 1.40 and a beta of 1.28.

CarGurus (NASDAQ:CARG) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.56 by $0.02. CarGurus had a return on equity of 47.50% and a net margin of 16.60%.The business had revenue of $243.56 million for the quarter, compared to the consensus estimate of $243.12 million. During the same period in the prior year, the business earned $0.46 earnings per share. The business’s revenue 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, equities analysts predict that CarGurus will post 2.06 EPS for the current year.

Insiders Place Their Bets

In related news, insider Jennifer Ladd Hanson sold 2,499 shares of the company’s stock in a transaction on Tuesday, March 31st. The stock was sold at an average price of $35.61, for a total value of $88,989.39. Following the completion of the transaction, the insider directly owned 98,191 shares in the company, valued at approximately $3,496,581.51. This represents a 2.48% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Matthew Todd Quinn sold 4,341 shares of the company’s stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $33.04, for a total value of $143,426.64. Following the completion of the transaction, the chief technology officer owned 246,098 shares of the company’s stock, valued at $8,131,077.92. The trade was a 1.73% 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. Over the last ninety days, insiders have sold 12,852 shares of company stock valued at $431,053. 16.99% of the stock is owned by company insiders.

CarGurus News Summary

Here are the key news stories impacting CarGurus this week:

• Positive Sentiment: Q1 results beat expectations — CarGurus reported $0.58 GAAP EPS vs. $0.56 consensus and revenue of ~$243.6M (slightly above estimates); revenue was up year-over-year and adjusted EBITDA exceeded guidance, showing operating resilience. Press Release
• Positive Sentiment: Large share repurchases — CarGurus repurchased $175M in Q1 and has repurchased ~29% of shares outstanding since Dec 2022, which supports EPS and shows strong cash return to shareholders. GlobeNewswire: Q1 Results
• Positive Sentiment: Analyst upgrade/price-target increases — Needham moved to a Buy and raised its target to $43, signaling upside (~22% from current levels) and positive analyst sentiment. Benzinga
• Neutral Sentiment: Q2 guidance largely in-line — CarGurus set Q2 EPS guidance of $0.57–$0.64 and revenue $247M–$252M, which overlaps consensus and was therefore not a clear beat or miss. See company materials for detail. Q1 Slide Deck
• Neutral Sentiment: JPMorgan raised its price target to $38 but kept a Neutral rating, offering only modest upside and mixed analyst conviction. Benzinga
• Neutral Sentiment: Full earnings call transcript and analyst write-ups are available for more color on trends and guidance assumptions. Earnings Call Transcript
• Positive Sentiment: Business development/marketing initiatives such as the NASCAR Canada push were highlighted as potential growth/brand drivers. Yahoo: NASCAR Canada Push
• Negative Sentiment: GAAP net income declined (~23% YoY) despite adjusted strength, which may worry investors focused on GAAP profitability and margin sustainability. GlobeNewswire: Q1 Results
• Negative Sentiment: Some disclosure/guidance items were unclear or perceived as underwhelming by short-term traders (including a confusing FY commentary in certain feeds), which likely amplified post-earnings selling. MSN: Q1 Reaction

Hedge Funds Weigh In On CarGurus

Several institutional investors have recently added to or reduced their stakes in the business. Invesco Ltd. increased its stake in CarGurus by 1.5% in the fourth quarter. Invesco Ltd. now owns 1,702,402 shares of the company’s stock valued at $65,287,000 after purchasing an additional 24,788 shares during the last quarter. Mercer Global Advisors Inc. ADV increased its stake in CarGurus by 35.4% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 12,936 shares of the company’s stock worth $496,000 after acquiring an additional 3,385 shares during the last quarter. Vident Advisory LLC increased its stake in CarGurus by 1.4% during the fourth quarter. Vident Advisory LLC now owns 155,205 shares of the company’s stock worth $5,952,000 after acquiring an additional 2,207 shares during the last quarter. XTX Topco Ltd acquired a new stake in CarGurus during the fourth quarter worth about $900,000. Finally, Kensington Investment Counsel LLC acquired a new stake in CarGurus during the fourth quarter worth about $1,182,000. 86.90% of the stock is currently owned by institutional investors and hedge funds.

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.