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Autotrader lifts profit, steps up buybacks as digital edge widens

Story Highlights
  • Autotrader increased revenue and profit while maintaining margins, driven by higher retailer yields and strong buyer engagement.
  • The company is ramping up capital returns and AI-driven products, expecting stable margins and solid earnings growth ahead.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Autotrader lifts profit, steps up buybacks as digital edge widens

Meet Samuel – Your Personal Investing Prophet

Auto Trader ( (GB:AUTO) ) just unveiled an update.

Autotrader Group reported a 4% rise in group revenue to £624.3m and a 4% increase in operating profit to £392.7m for the year to 31 March 2026, with margins holding at 63% despite tougher trading conditions. Growth was driven by a 5% increase in average revenue per retailer and continued gains in user engagement, as consumers spent significantly more time on its platform than on rivals.

The company accelerated capital returns, distributing £463m via dividends and buybacks and planning to return about £600m more in 2027, while modestly leveraging its balance sheet. Autotrader also pushed ahead with AI-enabled products and its Deal Builder solution, addressed retailer concerns over its rollout, and signalled stable margins and high single‑digit earnings growth as it moves to integrate leasing operations into a single reporting segment.

The most recent analyst rating on (GB:AUTO) stock is a Sell with a £470.00 price target. To see the full list of analyst forecasts on Auto Trader stock, see the GB:AUTO Stock Forecast page.

Spark’s Take on AUTO Stock

According to Spark, TipRanks’ AI Analyst, AUTO is a Outperform.

Auto Trader’s strong financial performance and strategic share buybacks are significant positives, supporting a stable outlook. However, weak technical indicators and challenges in certain revenue streams slightly temper the overall score.

To see Spark’s full report on AUTO stock, click here.

More about Auto Trader

Autotrader Group plc is the UK’s largest automotive marketplace and a leading digital platform for the automotive industry, listed on the London Stock Exchange and a constituent of the FTSE 100. The company leverages proprietary data, artificial intelligence and scalable technology to improve vehicle buying and selling, helping retailers and manufacturers optimise pricing, demand forecasting and customer engagement.

Average Trading Volume: 5,253,864

Technical Sentiment Signal: Sell

Current Market Cap: £4.03B

Learn more about AUTO stock on TipRanks’ Stock Analysis page.

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