CarMax

KMX Q1 2026 Earnings

Reported Jun 20, 2025 at 6:58 AM ET · SEC Source

Q1 26 EPS

$1.38

BEAT +18.29%

Est. $1.17

Q1 26 Revenue

$7.55B

BEAT +0.20%

Est. $7.53B

vs S&P Since Q1 26

-49.1%

TRAILING MARKET

KMX -25.7% vs S&P +23.4%

Market Reaction

Did KMX Beat Earnings? Q1 2026 Results

CarMax opened fiscal 2026 with its strongest earnings performance in years, posting first-quarter diluted EPS of $1.38, an 18.29% beat against the $1.17 consensus estimate, while revenue of $7.55 billion edged past expectations by 0.20%, even as the … Read more CarMax opened fiscal 2026 with its strongest earnings performance in years, posting first-quarter diluted EPS of $1.38, an 18.29% beat against the $1.17 consensus estimate, while revenue of $7.55 billion edged past expectations by 0.20%, even as the top line slipped a modest 0.3% year over year. The headline driver was a broad-based volume recovery, with retail used vehicle unit sales climbing 9.0% to 230,210 units and comparable store used unit sales rising 8.1%, the largest jump in nearly four years, as Trump's automobile tariffs steered cost-conscious buyers toward the used market. Unit economics reinforced the story: retail gross profit per unit reached an all-time high of $2,407, helping lift total gross profit 12.8% to $893.60 million, while SG&A discipline held expense growth to just 3.3% despite surging volume. Looking ahead, CarMax expects continued market share gains and meaningful year-over-year earnings growth, supported by an expanding non-prime funding program designed to broaden full-spectrum penetration while carefully managing credit exposure.

Key Takeaways

  • Retail used unit sales increased 9.0% with comparable store used unit sales up 8.1%
  • Record high gross profit per retail used unit of $2,407, up $60 per unit
  • SG&A leverage of 680 basis points improvement as a percent of gross profit
  • Other gross profit increased 31.3% driven by service margin improvements and EPP revenue growth
  • Service margin per retail unit improved by $128 to $143 per unit
  • Digital capabilities supported 80% of retail unit sales
  • Dealer vehicle purchases surged 38.4% year-over-year
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KMX YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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KMX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 25 Q1 27

“We delivered our fourth consecutive quarter of positive retail comps and double-digit year-over-year earnings per share growth. These results highlight the strength of our earnings growth model, which is underpinned by our best-in-class omni-channel experience, the diversity of our business, and our sharp focus on execution.”

— Bill Nash, Q1 2026 Earnings Press Release