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May 31
CarMax Q1 2026 Earnings Report
CarMax reported strong first quarter results for fiscal year 2026 with robust retail sales and record gross profit per used unit.
Key Takeaways
CarMax delivered a solid Q1 FY26, driven by a 9% increase in used unit sales and a 12.8% boost in gross profit. Net income rose to $210.4 million, supported by operational efficiencies and strong margin performance.
Net earnings per diluted share increased 42.3% to $1.38.
Retail used unit sales increased 9.0%, and comparable store used unit sales increased 8.1%.
Total gross profit increased 12.8% to $893.6 million.
Achieved a record high gross profit per retail used unit of $2,407.
CarMax
CarMax
CarMax Revenue by Segment
Revenue by Segment
Used Vehicles Revenue
CapyFin.comWholesale Vehicles Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
CarMax expects continued growth supported by its omni-channel platform, retail strength, and financing flexibility, though macroeconomic conditions may weigh on some financial performance metrics.
Positive Outlook
- Continued investment in omni-channel and digital capabilities
- Record retail gross profit per unit achieved
- Expanded non-prime funding program in CAF
- Retail unit growth remains strong
- Ongoing cost management driving SG&A leverage
Challenges Ahead
- CAF income declined due to higher provision for loan losses
- Slight decline in wholesale vehicle profitability per unit
- Used vehicle average price decreased slightly
- Penetration rate of CAF financing dropped
- Macroeconomic uncertainty impacting loan loss provisions
Revenue & Expenses
Visualization of income flow from segment revenue to net income