CarMax, Inc. (NYSE:KMX) Surpasses Earnings and Revenue Estimates

• CarMax, Inc. (NYSE:KMX) reported earnings per share (EPS) of $1.38, beating the estimated $1.16 and showcasing significant growth from the previous year.

• The company achieved a revenue of approximately $7.55 billion, surpassing expectations and marking a 6% year-over-year growth.

• CarMax saw a 9% increase in units sold, with robust used-vehicle sales driving the company's performance.

CarMax, Inc. (NYSE:KMX), a leading retailer of used vehicles in the United States, operates through two segments: CarMax Sales Operations and CarMax Auto Finance. It offers a wide range of vehicles and related products, including extended protection plans. Competing with other used car retailers like AutoNation and Carvana, CarMax has established a strong presence in the market.

On June 20, 2025, CarMax reported earnings per share (EPS) of $1.38, surpassing the estimated $1.16. This strong performance is further highlighted by the company's first-quarter fiscal 2026 results, where EPS reached $1.38, exceeding the Zacks Consensus Estimate of $1.18. This marks a significant increase from the 97 cents per share recorded in the same quarter last year.

CarMax achieved a revenue of approximately $7.55 billion, exceeding the estimated $7.50 billion. The company's revenues for the first quarter of fiscal 2026 reached $7.55 billion, surpassing the expected $7.52 billion and reflecting a 6% year-over-year growth. This growth was primarily driven by robust used-vehicle sales, which rose by 7.5% to $6.1 billion.

The number of units sold also saw a notable increase of 9%, totaling 230,210 vehicles. CarMax's retail side showed particularly strong performance, with comparable store used unit sales rising by 8.1% compared to the previous year. During the quarter, CarMax purchased 336,000 vehicles from consumers and dealers, marking a 7% rise.

Following the release of its strong first-quarter results, CarMax's stock experienced a significant increase. The company has a price-to-earnings (P/E) ratio of approximately 21.05, indicating the market's valuation of its earnings. CarMax's debt-to-equity ratio of approximately 3.08 highlights its financial leverage, while a current ratio of around 2.31 suggests its ability to cover short-term liabilities.