diff --git a/changelogs/fragments/4052-fix-detection-of-installed-cargo-packages-with-hyphens.yaml b/changelogs/fragments/4052-fix-detection-of-installed-cargo-packages-with-hyphens.yaml
new file mode 100644
index 0000000000..e17195ac6d
--- /dev/null
+++ b/changelogs/fragments/4052-fix-detection-of-installed-cargo-packages-with-hyphens.yaml
@@ -0,0 +1,3 @@
+bugfixes:
+  - cargo - fix incorrectly reported changed status for packages with a name containing a hyphen (https://github.com/ansible-collections/community.general/issues/4044, https://github.com/ansible-collections/community.general/pull/4052).
+  - cargo - fix detection of outdated packages when ``state=latest`` (https://github.com/ansible-collections/community.general/pull/4052).
diff --git a/plugins/modules/packaging/language/cargo.py b/plugins/modules/packaging/language/cargo.py
index b7251887aa..d449f1020e 100644
--- a/plugins/modules/packaging/language/cargo.py
+++ b/plugins/modules/packaging/language/cargo.py
@@ -112,7 +112,7 @@ class Cargo(object):
         cmd = ["install", "--list"]
         data, dummy = self._exec(cmd, True, False, False)
 
-        package_regex = re.compile(r"^(\w+) v(.+):$")
+        package_regex = re.compile(r"^([\w\-]+) v(.+):$")
         installed = {}
         for line in data.splitlines():
             package_info = package_regex.match(line)
@@ -136,11 +136,11 @@ class Cargo(object):
         installed_version = self.get_installed().get(name)
 
         cmd = ["search", name, "--limit", "1"]
-        data = self._exec(cmd, True, False, False)
+        data, dummy = self._exec(cmd, True, False, False)
 
         match = re.search(r'"(.+)"', data)
         if match:
-            latest_version = match[1]
+            latest_version = match.group(1)
 
         return installed_version != latest_version
 
diff --git a/tests/integration/targets/cargo/tasks/test_version.yml b/tests/integration/targets/cargo/tasks/test_version.yml
index a59bd72e0a..1db9d786dc 100644
--- a/tests/integration/targets/cargo/tasks/test_version.yml
+++ b/tests/integration/targets/cargo/tasks/test_version.yml
@@ -5,21 +5,42 @@
     version: 0.1.0
   register: install_helloworld_010
 
+- name: Install application helloworld-yliu 0.1.0 (idempotent)
+  community.general.cargo:
+    name: helloworld-yliu
+    version: 0.1.0
+  register: install_helloworld_010_idem
+
 - name: Upgrade helloworld-yliu 0.1.0
   community.general.cargo:
     name: helloworld-yliu
     state: latest
   register: upgrade_helloworld_010
 
+- name: Upgrade helloworld-yliu 0.1.0 (idempotent)
+  community.general.cargo:
+    name: helloworld-yliu
+    state: latest
+  register: upgrade_helloworld_010_idem
+
 - name: Downgrade helloworld-yliu 0.1.0
   community.general.cargo:
     name: helloworld-yliu
     version: 0.1.0
   register: downgrade_helloworld_010
 
-- name: Check assertions helloworld-yliu 0.1.0
+- name: Downgrade helloworld-yliu 0.1.0 (idempotent)
+  community.general.cargo:
+    name: helloworld-yliu
+    version: 0.1.0
+  register: downgrade_helloworld_010_idem
+
+- name: Check assertions helloworld-yliu
   assert:
     that:
         - install_helloworld_010 is changed
+        - install_helloworld_010_idem is not changed
         - upgrade_helloworld_010 is changed
+        - upgrade_helloworld_010_idem is not changed
         - downgrade_helloworld_010 is changed
+        - downgrade_helloworld_010_idem is not changed