CarGurus Expects Slight Margin Decline in 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 13 2026
0mins
While presenting at the Needham Growth Conference, executives from CarGurus stated, according to a transcript of the event: "And yeah, we talked about investing more. And so. You know our expectation is that in 26 there will be a slight step down in margin because of the investments that we're making. And we're doing that in order to maintain a higher growth rate than we otherwise would have. And we think that that growth is not only, I mean, it's not near-term. It is long term sustainable growth. That is deepening our relationship with dealers. And we think is the right growth margin, trade off."
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Analyst Views on CARG
Wall Street analysts forecast CARG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CARG is 42.38 USD with a low forecast of 40.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 33.420
Low
40.00
Averages
42.38
High
45.00
Current: 33.420
Low
40.00
Averages
42.38
High
45.00
About CARG
CarGurus, Inc. (CarGurus) offers a multinational, online automotive platform for buying and selling vehicles that offer both digital retail solutions and the CarOffer digital wholesale platform. The CarGurus platform enables consumers to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, instantly acquire, effectively market, and quickly sell vehicles, all with a nationwide reach. It operates through two segments: U.S. Marketplace and Digital Wholesale. The U.S. Marketplace segment provides marketplace services for customers within the United States. Digital Wholesale segment provides Dealer-to-Dealer and Instant Max Cash Offer (IMCO) services and products which are sold on the CarOffer platform. The Company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. It also operates independent brands, the Autolist and PistonHeads online marketplaces in the United States and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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