Q2 26 EPS
$0.64
MISS 38.07%
Est. $1.03
Q2 26 Revenue
$6.59B
MISS 6.07%
Est. $7.02B
vs S&P Since Q2 26
+5.0%
BEATING MARKET
KMX +16.4% vs S&P +11.4%
Market Reaction
Did KMX Beat Earnings? Q2 2026 Results
CarMax posted a deeply disappointing second quarter of fiscal 2026, with earnings per diluted share of $0.64 falling 38.07% short of the $1.03 consensus estimate and marking a 24.7% decline from a year ago, while revenue of $6.59 billion missed expec… Read more CarMax posted a deeply disappointing second quarter of fiscal 2026, with earnings per diluted share of $0.64 falling 38.07% short of the $1.03 consensus estimate and marking a 24.7% decline from a year ago, while revenue of $6.59 billion missed expectations by 6.07% and contracted 11.8% year over year. The primary culprit was a surge in credit loss provisions at CarMax Auto Finance, where the provision for loan losses climbed to $142.20 million, including a $71.30 million upward revision to lifetime loss estimates on 2022 and 2023 loan vintages, dragging CAF income down 11.2% to $102.60 million. Comparable store used unit sales fell 6.3%, a sharp reversal from 4.3% growth in the prior-year quarter, compounding pressure on a gross profit that slipped 5.6% to $717.70 million. The results triggered securities fraud investigations by multiple law firms scrutinizing the company's disclosures to investors. Looking ahead, management outlined at least $150 million in incremental SG&A reductions over the next 18 months and flagged a $25 million to $30 million gain on sale from a September non-prime securitization transaction expected to benefit third-quarter results.
Key Takeaways
- • Retail used vehicle unit sales decreased 5.4% and comparable store used unit sales decreased 6.3%
- • Wholesale units decreased 2.2% but average wholesale selling price rose 1.6%
- • Gross profit per retail used unit held steady at $2,216
- • CAF income declined 11.2% due to increased provision for loan losses
- • Provision for loan losses increased to $142.2 million from $112.6 million, primarily due to worsening 2022 and 2023 vintage performance
- • SG&A decreased 1.6% driven by lower share-based compensation
- • Digital capabilities supported 80% of retail unit sales; omni sales were 68% and online retail sales 12%
- • CAF total interest margin percentage improved 50 basis points to 6.6%
KMX YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
KMX Revenue by Segment
With YoY comparisons, source: SEC Filings
“While this was a challenging quarter, we remain confident in our long-term strategy and the strength of the earnings model that we have built. We are excited about the recent launch of our new brand positioning campaign "Wanna Drive?" that brings our differentiated omni-channel experience to life and underscores our ongoing commitment to empowering the customer. Also, we will continue to drive SG&A efficiency, targeting at least $150 million in incremental SG&A reductions over the next 18 months.”
— Bill Nash, Q2 2026 Earnings Press Release
KMX Earnings Trends
KMX vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
KMX EPS Trend
Earnings per share: estimate vs actual
KMX Revenue Trend
Quarterly revenue: estimate vs actual
KMX Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 27 BEAT | $0.94 | $1.31 | +38.77% | $8.01B | +8.01% |
| Q4 26 BEAT FY | $0.22 | $0.34 | +51.92% | $5.95B | +3.84% |
| FY Full Year | $2.68 | $2.91 | +8.40% | $25.88B | +1.06% |
| Q3 26 BEAT | $0.32 | $0.43 | +36.08% | $5.79B | +2.87% |
| Q2 26 MISS | $1.03 | $0.64 | -38.07% | $6.59B | -6.07% |
| Q1 26 BEAT | $1.17 | $1.38 | +18.29% | $7.55B | +0.20% |
| Q4 25 MISS FY | $0.66 | $0.58 | -11.91% | $6.00B | +0.49% |
| FY Full Year | $3.28 | $3.21 | -2.21% | $26.35B | +0.05% |