CarMax (KMX) Q4 2026 Earnings
How Did KMX Stock React to Q4 2026 Earnings?
S&P 500 over the same 30 days: +7.73%.
Did KMX Beat Earnings? Q4 2026 Results
Yes. CarMax reported Q4 2026 earnings of $0.34 a share on Apr 14, 2026, beating the $0.22 consensus estimate by 51.9%. Revenue was $5.9B against a $5.7B estimate.
CarMax delivered a sharply better-than-expected fourth quarter of fiscal 2026, with adjusted earnings per diluted share of $0.34 beating the $0.18 consensus by 91.33%, while revenue of $5.95 billion topped estimates of $4.25 billion by 39.86%, even as total revenue fell 8.1% year over year. The headline beat, however, masked a deeply pressured quarter beneath the surface: the company posted a GAAP net loss of $120.68 million, weighed down by a $141.26 million non-cash goodwill impairment charge and $33.90 million in restructuring costs tied to CEO succession and workforce reductions. Retail used unit comps slipped 1.9% as deliberate pricing actions compressed gross profit per retail used unit by $207 to $2,115, and total gross profit fell 9.4% to $605.30 million. Ahead of the print, investor expectations had already skewed cautious, with options markets pricing in an outsized post-earnings swing. New CEO Keith Barr moved quickly to raise the company's targeted SG&A cost reduction goal to $200 million in exit-rate savings by the end of fiscal 2027, with four new store openings and roughly $400 million in capital expenditures planned for the year ahead.
- Retail used vehicle unit sales declined 0.8% and comparable store used unit sales declined 1.9%, reflecting pricing actions to drive improved sales trends
- Gross profit per retail used unit declined $207 to $2,115 from prior year's record fourth quarter
- Wholesale units increased 3.0% while gross profit per wholesale unit declined $105 to $940
- CAF income decreased 9.8% to $143.7 million due to lower auto loans outstanding and increased provision for loan losses
- Non-cash goodwill impairment charge of $141.3 million driven by decline in market capitalization and pressured financial performance
- Restructuring charges of $33.9 million for CEO change severance, workforce reductions, and Edmunds lease abandonment
- Digital capabilities supported 83% of retail unit sales with omni sales at 70%
- Adjusted SG&A expenses declined 5.4% or $33.1 million year-over-year
“We are moving with urgency to improve execution, drive efficiencies, and sharpen our customer offering.”
CarMax CEO, on the earnings call
What Was CarMax's Outlook in Q4 2026?
CarMax plans to open four new stores, two stand-alone reconditioning/auction centers, and two stand-alone auction facilities in fiscal 2027, with expected capital expenditures of approximately $400 million. The company has increased its targeted SG&A cost reductions to $200 million in exit rate savings by the end of fiscal 2027, up from the prior goal of $150 million. In fiscal 2027, the company expects to leverage SG&A per total unit when excluding the restructuring charges incurred in FY26. CAF's expansion into the credit spectrum (Tier 2/Tier 3) is expected to be highly profitable over time, though the required upfront lifetime loss provision will be a near-term headwind.
KMX YoY Financials
| Metric | Q4 2026 | Q4 2025 | Year over year |
|---|---|---|---|
| Revenue | $5.9B | $6.5B | −8.1% |
| Gross Profit | $605.3M | $762.2M | −20.6% |
KMX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.