CarMax Inc: Beat — EPS $1.16, Revenue $7.88B
Earnings Report· 2026-09-29
KMX
Q2 · 2027Pre-MarketCarMax Inc
@trystockwhiz
EARNING PER SHARE
Actual ($)
1.16
81.30% YoY
Expected
0.73
Beat
+58.90%
REVENUE
Actual ($)
7.88B
19.50% YoY
Expected
7.03B
Beat
+12.06%
Earning Report
| Metric | Q2 FY2027 | Q2 FY2026 | YoY Change % |
|---|---|---|---|
| Revenue | $7.88B | $6.59B | 19.5 |
| └─Used vehicle sales | $6.31B | $5.27B | 19.7 |
| └─Wholesale vehicle sales | $1.36B | $1.15B | 18.2 |
| └─Extended protection plan revenues | $141.60M | $115.10M | 23.0 |
| └─Third-party finance fees, net | $(1.8)M | $(0.8)M | -139.0 |
| └─Advertising & subscription revenues | $36.30M | $37.90M | -4.3 |
| └─Other | $32.30M | $22.20M | 46.0 |
| └─Total other sales and revenues | $208.40M | $174.40M | 19.5 |
| Net earnings | $165.30M | $95.40M | 73.3 |
| Basic EPS | $1.16 | $0.64 | 81.3 |
| Diluted EPS | $1.16 | $0.64 | 81.3 |
Financial Outlook / Guidance
| Metric | Next Quarter Outlook | FY2027 Outlook |
|---|---|---|
| SG&A reductions | — | $200M exit-rate savings |
Business Highlights
- ➤Advanced the four-pillar Shift into GEAR strategy centered on customer experience and sustainable growth.
- ➤Enhanced the digital experience and connected online capabilities with in-store experiences.
- ➤Expanded CAF participation in Tier 2 originations and became the largest lender in that space.
- ➤Purchased 310,107 vehicles from consumers and dealers during the quarter.
- ➤Opened an offsite auction center and store in Conroe, Texas.
- ➤Opened a store in Richland, Washington.
- ➤Opened an additional store in Austin, Texas after quarter-end.
- ➤Plans to resume share repurchases at a modest level in Q3 FY2027.
- ➤Had $1.31B remaining under the outstanding repurchase authorization.
- ➤Will host a virtual Strategic Update on November 3 focused on growth initiatives and milestones.
- ➤Continues technology and operational-efficiency efforts to lower reconditioning costs and enhance logistics.
- ➤CarMax has more than 255 store locations and approximately 28,000 associates.
Management Commentary
Keith Barr, President and Chief Executive Officer
“Our strong second quarter results reflect solid execution and early progress against Shift into GEAR, our four-pillar strategy to strengthen CarMax’s core business and return the company to sustained growth. We delivered 81% EPS growth as we strengthened our price competitiveness, increased Extended Protection Plan margins, expanded CAF’s share of Tier 2 originations, continued to enhance our digital experience, and drove material SG&A leverage. I am confident in our ability to build on this early momentum. We have a clear strategy, a solid foundation, and an exceptional team accelerating our progress to create long-term value for our shareholders.”