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Cars.com (CARS) margin compression in Q1 2026 reinforces bearish profitability narratives. May 07, 2026 Cars.com (CARS) opened 2026 with Q1 revenue of US$180.2 million and basic EPS of US$0.08, setting the tone for how its profitability story is evolving after a mixed stretch of quarterly results. The company has seen quarterly revenue move between US$178.7 million and US$183.9 million over the past year, while basic EPS ranged from a loss of US$0.03 in Q1 2025 to US$0.12 in Q4 2025, giving investors a clear view of how earnings power has shifted across recent periods. With trailing net profit margins easing and interest costs flagged as a pressure point, this set of results puts the quality and resilience of Cars.com's margins firmly in focus. With the latest numbers on the table, the next step is to see how this earnings profile lines up against the prevailing narratives about Cars.com, highlighting where the story is confirmed and where it might need a rethink. Margins tighten with net profit at 3.7%. * Trailing net profit margin sits at 3.7%, compared with 6.3% a year earlier, while trailing 12 month net income is US$27.0 million on US$724.4 million of revenue. * Consensus narrative points to rising AI powered tools and SaaS offerings as drivers of higher margin revenue. However, the current 3.7% net margin and Q1 2026 net income of US$5.0 million show that margin expansion in the story coexists with relatively modest profitability today. * This margin picture contrasts with analysts' expectation that margins rise to 10.8% over the next few years, so current results leave a gap between today's profitability and that view. * Five year earnings growth of about 21.1% per year supports the idea of a stronger earnings engine, but the recent margin level makes the path from growth to higher net profitability an important focus. Earnings trend vs bearish profit Concerns. * Trailing 12 month basic EPS is US$0.44 on net income of US$27.0 million, while the latest quarter delivered basic EPS of US$0.08, compared with a loss of US$0.03 in Q1 2025 and US$7.7 million of net income in Q3 2025. * Bears argue that shifting business models and rising costs will pressure Cars.com's profitability. At the same time, the move from a Q1 2025 loss of US$2.0 million to Q1 2026 net income of US$5.0 million and a full year profit of US$27.0 million shows earnings are currently positive even as margins sit below last year's 6.3%. * Concerns about long term pressure on used car transactions and dealer ad budgets sit alongside this recent stretch of four consecutive profitable quarters following Q1 2025. * The decline in trailing net margin from 6.3% to 3.7% aligns with the bearish view that costs and industry shifts could limit how much of that revenue turns into bottom line profit. High 26x P/E versus DCF fair value of US$33.55. * The stock trades on a trailing P/E of 26x at a share price of US$12.33, compared with a DCF fair value of US$33.55 and a peer average P/E of 8.7x and industry average of 20.1x. * Bullish investors highlight forecast earnings growth of about 19.4% per year and five year earnings growth of roughly 21.1% per year. This growth profile is used to justify the contrast between the 26x P/E and the much higher DCF fair value of US$33.55, even though the current net margin of 3.7% and flagged weak interest coverage show the business is still carrying financial pressure. * The higher P/E versus peers and industry supports the bullish idea that the market is already paying up for this earnings profile. * However, interest payments not being well covered by earnings means any shortfall versus those growth expectations could matter for how investors judge that valuation gap. Next steps. To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Cars.com on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves. If you see both reasons for optimism and causes for concern around Cars.com but are still unsure of your view, take a moment to review the key figures yourself. Then consider the 2 key rewards and 2 important warning signs to help clarify your perspective. See what else is out there. Cars.com is profitable, but a 3.7% net margin, weaker interest coverage, and a 26x P/E against modest earnings highlight several potential pressure points on quality. If that combination of thin margins and valuation risk makes you cautious, it may be useful to compare this stock with companies screened for 72 resilient stocks with low risk scores to see alternatives that may better fit a more conservative profile. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. New: AI Stock Screener & alerts. Our new AI Stock Screener scans the market every day to uncover opportunities. - Dividend Powerhouses (3%+ Yield) - Undervalued Small Caps with Insider Buying - High growth Tech and AI Companies Or build your own from over 50 metrics. Have feedback on this article? Concerned about the content? Get in touch with us directly. 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Is the 2026 Nissan Armada a good SUV? 5 pros, 2 cons. By Jim Travers March 27, 2026 Nissan redesigned the Armada full-size SUV for 2025, bringing a more fuel-efficient powertrain, added off-road capability, and lots of new tech while keeping its spacious interior and seating for up to eight. The result is a much improved flagship SUV - and one that is attractively priced for the category. Shop the 2026 Nissan Armada near you. $61,203 MSRP $65,110 $66,732 MSRP $70,690 Unlike its Toyota Land Cruiser rival that got a bit smaller and more utilitarian with its 2024 redesign, the new Armada is every bit as large and luxurious as the last one, with plenty of room inside and a beautifully finished and attractive interior. The new twin-turbo V-6 outguns the Armada's old V-8 and is less thirsty at the pump, and a new Pro-4X trim brings more off-road capability. For 2026, the Pro-4X can now be had with second-row captain's chairs and there's a new NISMO trim, but the remainder of the lineup remains mostly unchanged. Cars.com Detroit Bureau Chief Aaron Bragman attended a Nashville, Tenn., media event to get familiar with the new Armada and found it ready to go head-to-head against competitors including the Chevrolet Tahoe, Ford Expedition and Toyota Sequoia. (Per its ethics policy, Cars.com pays for its own travel and lodging when attending manufacturer-sponsored events.) Tap the link above to read Aaron's expert review. Read on for a look at five things Cars.com like about the 2026 Nissan Armada and two things Cars.com do not. What do Cars.com like about the 2025 Nissan Armada? 1. Fewer cylinders, more turbos. The redesigned Armada is the latest model to ditch an aging V-8 for a more potent and fuel-efficient V-6 - in this case, one with twin turbos and good for 425 horsepower and an impressive 516 pounds-feet of torque. That works out to an increase of 25 hp and a notable 103 pounds-feet of torque compared to the old V-8. The NISMO further ups the ante for a total output of 460 hp. Paired with a nine-speed automatic transmission, the Armada hustles smoothly and effortlessly up to speed with a lot more urgency than before. 2. Towing champ. The redesigned Armada is rated to tow an impressive 8,500 pounds, more than enough to meet the needs of most weekend warriors. Cars.com had the opportunity to haul a 6,500-pound Airstream camping trailer during testing, which it handled easily, even accelerating while tackling a large hill. Thanks to an integrated trailer brake controller (standard with upper trims) and a suspension that's up for the task, the Armada felt stable and drama-free while pulling the big trailer. 3. On- and off-road ready. While the NISMO adds some oomph when you're trailering your track car, fans of off-roading will be pleased to hear the redesign also brings a Pro-4X trim to the Armada lineup, which gets you additional hardware that includes skid plates for the radiator, transfer case and fuel tank, tow hooks, an electronic locking rear differential, all-terrain tires on 20-inch wheels, a height-adjustable air suspension and assorted electronic terrain programs for different conditions. What's perhaps most impressive is that the Armada rides and handles just as well on pavement as it does out in the boonies, with well-controlled body motions and a quiet cabin. 4. Improved interior. Like the outgoing model, the redesigned Armada rides on a 121.1-inch wheelbase and is about the same size all around. But engineers worked on more efficient interior packaging, resulting in a roomier cabin with added legroom. Nissan's "Zero Gravity" front seats in its top Platinum Reserve test vehicle were big and comfortable, with heating, cooling and massage functions. Fit and finish are top notch, with excellent materials quality and thoughtful use of color. 5. Dash and controls. A vivid 12.3-inch digital instrument display and matching adjacent 12.3-inch multimedia touchscreen are standard, while upper trims like its Platinum Reserve tester get an even larger 14.3-inch touchscreen. Both screens are clear and easy to use, but what Cars.com really like is Nissan's decision to go with easy-to-use physical controls for frequently used functions like climate adjustment and off-road settings. More on the Nissan Armada From Cars.com: What do Cars.com dislike about the 2025 Nissan Armada? 1. Push-Button shifter. There's no beating a shift lever for easy use on the fly, which makes the Armada's push-button gear selector a bit of a disappointment. While not as egregious a misstep as some control choices from other manufacturers, the buttons take up dash real estate and are harder to use than a lever without taking your eyes off the road. 2. Rim shot. Nissan would be wise to join other manufacturers in adopting a more rectangular steering wheel to make it easier to see dashboard displays. With today's wide, horizontal dash designs, a more rectangular shape makes it easier to monitor instruments and controls than with the Armada's round wheel, which obscures some of the driver display. Related Video: Cars.com's Editorial department is your source for automotive news and reviews. In line with Cars.com's long-standing ethics policy, editors and reviewers don't accept gifts or free trips from automakers. The Editorial department is independent of Cars.com's advertising, sales and sponsored content departments.

Cars.com 2026 Best Of Award winners. We recently shared the winners of MotorWeek's 2026 Drivers' Choice Awards. Now we bring you the winners of Cars.com's annual Best Of Awards. They recognize top-rated 2026 vehicles across six categories. Cars.com says its trusted experts chose winners that stand out for delivering real-world value, usability, and innovation. "Each year, Cars.com editors carefully evaluate all new and redesigned vehicles to see how they measure up - our Best Of winners are those that truly exceed expectations," said Mike Hanley, Cars.com senior road test editor. "Case in point, the Nissan Leaf is perhaps a surprising choice as the EV market recalibrates following the sunsetting of federal tax credits, but at a time when many shoppers assume affordable EVs are out of reach, the redesigned Leaf proves value, innovation and everyday usability can still coexist." The awards come as affordability remains top of mind for many car shoppers, while at the same time there are fewer budget-friendly models available. Across categories, Cars.com says this year's winner stand out for delivering long-term value without forcing major trade-offs in safety, space or usability. Cars.com's 2026 Best Of Award winners: * Best Car: 2026 Nissan Leaf. Starting at $31,485, the LEAF delivers up to an EPA-estimated 303 miles of range, strong efficiency and flexible charging, including access to Tesla's Supercharger network. Cars.com says the model's intuitive tech, composed driving dynamics and generous standard features reinforce its value-forward appeal. Car Pro 2026 Nissan LEAF review | * Best SUV: 2026 Nissan Armada. Cars.com experts say a versatile lineup, strong twin-turbo V-6 power, up to 8,500 pounds of towing capacity and genuine three-row comfort make the Armada a compelling choice for large-SUV shoppers. (It was also recently named SUV of Texas by the Texas Auto Writers Association.) Car Pro 2026 Nissan Armada Nismo review | * Best Family Car: 2026 Hyundai Santa Fe, Santa Fe Hybrid. The Santa Fe offers three-row seating, easy access, flexible cargo space and an available hybrid drivetrain, all without the bulk or driving compromises of larger three-row vehicles. * Best Pickup Truck: 2026 Ram 1500. From work-ready trims to luxury models - plus the return of the Hemi V-8 - Cars.com says the Ram 1500 delivers confident capability alongside class-leading comfort. * Best EV: 2026 Kia EV9. With up to 305 miles of range, access to Tesla Superchargers and excellent family-friendly versatility, it addresses many of the common barriers to EV ownership. Read the Car Pro 2026 EV9 GT review | * Best Luxury Vehicle: 2026 Cadillac Escalade IQ. Experts from Cars.com say this all-electric Cadillac redefines electric luxury with bold design; a technology-rich cabin; an estimated 465 miles of range; and refined, surprisingly agile driving dynamics. Read the Car Pro 2025 Cadillac Escalade IQ review Photo: Nissan.