Companies /Consumer Cyclical

Carmax Inc

NYSE: KMX Auto & Truck Dealerships
$61.43
▲ $0.43 (+0.70%) today
Markets closed · 12:28am ET

Q1 2026 Earnings

Reported Jun 20, 2025, 6:58am ET · SEC source
$1.38
Beat +18.29%
EPS · est. $1.17
$7.5B
Beat +0.20%
Revenue · est. $7.5B
−15.1%
Trailing market
KMX vs S&P since report
3 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−3%0+3%Jun 20Jun 20report 6:58am ETearnings+0.1%−0.7%
−3%0+3%Jun 20Jun 20earnings+0.1%−0.7%
KMX −0.7%S&P 500 +0.1%
−3%0+3%Jun 20Jun 20report 6:58am ETearnings−0.1%−0.7%
−3%0+3%Jun 20Jun 20earnings−0.1%−0.7%
KMX −0.7%NASDAQ −0.1%
−6%−3%0+3%Jun 20Jun 27report 6:58am ETearnings+3.1%−3.5%
−6%−3%0+3%Jun 20Jun 27earnings+3.1%−3.5%
KMX −3.5%S&P 500 +3.1%
−4%0+4%Jun 20Jun 27report 6:58am ETearnings+3.7%−3.5%
−4%0+4%Jun 20Jun 27earnings+3.7%−3.5%
KMX −3.5%NASDAQ +3.7%
+6.59%
Day of report
−2.04%
Next session
−2.87%
One week
−8.37%
30 days

S&P 500 over the same 30 days: +6.72%.

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 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

“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.”

CarMax CEO, on the earnings call

Forward Guidance & Outlook

CarMax expects the expansion of its non-prime funding program through CAF to provide significant flexibility in supporting full spectrum penetration growth plans while mitigating risk. The company plans to continue driving sales, gaining market share, and delivering significant year-over-year earnings growth. CarMax plans to release Q2 FY2026 results on September 25, 2025.

KMX YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$3.0B$6.0B$7.6B$7.5BRevenue$877.0M$893.6MGross Profit$238.4M$283.1MOperating Income$152.4M$210.4MNet Income
$0$3.0B$6.0BRevenueGross ProfitOperating IncomeNet Income

KMX Revenue by Segment

Used Vehicle Sales$6.1B+7.5%
Wholesale Vehicle Sales$1.3B−0.3%
CarMax Auto Finance$141.7M−3.6%
Advertising & Subscription Revenues$36.5M+5.3%
Extended Protection Plans$131.7M+10.8%

Figures from SEC filings and company reports. Not investment advice.