CarMax Reports 19.5% Revenue Growth to $7.88 Billion in Latest Quarter

CarMax, Inc. reported significant financial performance improvements in its latest quarterly filing, with net sales and operating revenues reaching $7.88 billion for the three months ended August 31, 2026, a 19.5% increase from $6.59 billion in the same period last year. For the first half of fiscal 2027, revenues totaled $15.89 billion, up 12.4% from $14.14 billion in the prior year. The company’s net earnings also saw a substantial rise, climbing 73.3% to $165.3 million for the quarter, and 14.8% to $350.9 million for the six-month period. This resulted in diluted earnings per share of $1.16 for the quarter, compared to $0.64 a year earlier.

The increase in revenues was primarily driven by a 19.7% rise in used vehicle sales, which amounted to $6.31 billion, and an 18.2% increase in wholesale vehicle sales, totaling $1.36 billion. The company sold 227,391 used vehicles in the quarter, reflecting a 13.8% increase, while wholesale unit sales rose by 15.9%. However, the gross profit margin decreased slightly, with used vehicle gross profit per unit falling to $2,105, down 5.0% from the previous year. The overall gross profit for the quarter was $799.5 million, an 11.4% increase from $717.7 million in the prior year.

In terms of operational developments, CarMax continued to expand its footprint, operating 258 used car stores across 111 U.S. television markets as of August 31, 2026. The company opened two new stores and one stand-alone reconditioning/auction center during the first half of the fiscal year, with plans for additional openings in the coming months. The CarMax Auto Finance (CAF) segment also reported a 32.1% increase in income to $135.6 million for the quarter, driven by a decrease in the provision for loan losses and a gain on the sale of auto loans.

Looking ahead, CarMax is focused on its strategic growth plan, dubbed "Shift into GEAR," which aims to enhance customer experience, improve operational efficiency, and increase profitability. The company plans to resume its share repurchase program in the third quarter of fiscal 2027, contingent on market conditions and capital needs. Despite the positive outlook, CarMax acknowledges potential challenges, including economic fluctuations and competitive pressures that could impact its performance. The company remains committed to leveraging its national footprint and digital capabilities to drive market share growth and financial returns.