Karooooo (NASDAQ:KARO) Issues FY 2026 Earnings Guidance

Karooooo (NASDAQ:KARO) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 1.876-2.049 for the period, compared to the consensus earnings per share estimate of 1.920. The company issued revenue guidance of -.

Analysts Set New Price Targets

KARO has been the topic of a number of recent analyst reports. Wall Street Zen upgraded Karooooo from a “hold” rating to a “buy” rating in a research report on Saturday, December 6th. Weiss Ratings restated a “hold (c+)” rating on shares of Karooooo in a research note on Tuesday, January 13th. Four research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Karooooo presently has an average rating of “Moderate Buy” and an average target price of $58.25.

Karooooo Stock Performance

Shares of KARO stock opened at $44.76 on Wednesday. The firm has a market capitalization of $1.38 billion, a price-to-earnings ratio of 25.01 and a beta of 1.06. The company has a current ratio of 0.80, a quick ratio of 0.79 and a debt-to-equity ratio of 0.08. The business’s 50-day moving average price is $45.64 and its 200-day moving average price is $48.51. Karooooo has a 12 month low of $35.88 and a 12 month high of $63.36.

Trending Headlines about Karooooo

Here are the key news stories impacting Karooooo this week:

• Positive Sentiment: Q3 reported results beat expectations — EPS $0.49 vs. $0.46 consensus and revenue $81.77M vs. $79.04M; strong net margin (~19.9%) and ROE (~31.6%) underline profitability improvement. Q3 Press Release
• Positive Sentiment: Annualized recurring revenue (ARR) accelerated to USD 298M, +28% Y/Y — signalling strong SaaS subscription momentum at Cartrack, Karooooo’s main operating business. BusinessWire ARR Article
• Positive Sentiment: Subscription revenue and subscriber metrics showed healthy growth (subscription revenue up ~20% and record subscriber additions reported), supporting recurring revenue visibility. MSN Subscription Article
• Neutral Sentiment: Management updated FY2026 EPS guidance to a range of 1.876–2.049 (consensus ~1.920). The range includes the street number but leans slightly below the midpoint — ambiguous for near?term sentiment.
• Negative Sentiment: Market reaction appears mixed: shares have pulled back after recent gains (investors may be taking profits) and the guidance range likely moderated expectations after the beat. Recent headlines about the stock “soaring” on subscriber/ARR acceleration could have prompted profit?taking once guidance gave less upside than some hoped. Investing.com Reaction

Hedge Funds Weigh In On Karooooo

A number of hedge funds have recently modified their holdings of KARO. Lazard Asset Management LLC lifted its holdings in Karooooo by 7.5% in the third quarter. Lazard Asset Management LLC now owns 6,139 shares of the company’s stock valued at $351,000 after buying an additional 430 shares during the period. Bank of America Corp DE grew its stake in Karooooo by 17.2% during the second quarter. Bank of America Corp DE now owns 5,100 shares of the company’s stock worth $250,000 after purchasing an additional 750 shares during the period. BNP Paribas Financial Markets lifted its stake in Karooooo by 22.8% in the third quarter. BNP Paribas Financial Markets now owns 6,195 shares of the company’s stock valued at $354,000 after buying an additional 1,150 shares during the period. New York State Common Retirement Fund grew its position in shares of Karooooo by 465.6% during the 2nd quarter. New York State Common Retirement Fund now owns 3,258 shares of the company’s stock worth $160,000 after buying an additional 2,682 shares during the period. Finally, Quantbot Technologies LP bought a new stake in shares of Karooooo in the 2nd quarter valued at $156,000.

Karooooo Company Profile

Karooooo Ltd is a global provider of telematics software-as-a-service solutions for vehicle and fleet management. Through its flagship platform, the company delivers real-time GPS tracking, stolen vehicle recovery and driver behaviour analytics, enabling commercial fleets and automotive insurers to optimise operations, increase safety and reduce costs.

Karooooo’s SaaS platform integrates proprietary hardware devices with cloud-based analytics and mobile applications. Customers gain access to live vehicle location data, engine diagnostics, route planning tools and customizable reporting dashboards.