CarGurus (NASDAQ:CARG) Shines with Strong Q1 Earnings, Analyst Upgrade, and Shareholder Returns

Font: Financial Modeling Prep  • May 11, 2026

• RBC Capital reiterated an Outperform rating for CarGurus, raising its price target to $35, indicating potential upside for the stock.
• CarGurus reported robust first-quarter 2026 financial results, with earnings of $0.58 per share surpassing estimates and revenues growing 15% year-over-year.
• The company maintains a strong financial position with a debt-free balance sheet and actively returned $175 million to shareholders through share repurchases.

CarGurus (NASDAQ:CARG) is a leading online automotive marketplace that connects car buyers with sellers. The platform provides essential tools and data to help consumers research and find vehicles efficiently. It operates in a competitive digital landscape alongside companies like Cars.com, TrueCar, and Autotrader, all vying for dealer listings and consumer traffic in the automotive industry.

On May 11, 2026, RBC Capital reiterated its Outperform rating on CarGurus. The investment bank also increased its price target for the stock to $35 from $34. At the time of the rating, the company's stock price was $33.16, suggesting potential upside based on the new target and a positive investment outlook.

This positive rating follows a strong financial report. For the first quarter of 2026, CarGurus announced earnings of $0.58 per share, which beat the Zacks Consensus Estimate of $0.56. This marks the fourth straight quarter that the company has surpassed consensus earnings and revenue estimates, highlighting consistent financial performance.

The company’s revenues also showed healthy growth, reaching $243.56 million for the quarter. This is a 15% increase from the $225.16 million reported in the same quarter a year ago. As highlighted by Seeking Alpha, this performance demonstrates resilient fundamentals despite wider economic challenges, reinforcing CarGurus' market position.

CarGurus maintains a strong financial position with a debt-free balance sheet. The company is also actively returning capital to its shareholders, having repurchased $175 million of its shares during the quarter. This brings total share repurchases to 29% of shares outstanding since December 2022, underscoring its commitment to shareholder value.