CarMax earnings surge as used vehicle sales jump

Retail & Consumer Retail Edited by: Angela Harmantas 08:37 Tue 29 Sep 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. CarMax Inc ( NYSE:KMX ) View Price & Profile CarMax earnings surge as used vehicle sales jump Published: 08:37 29 Sep 2026 EDT CarMax Inc (NYSE:KMX) increased second-quarter diluted earnings per share 81.3% to $1.16 despite pricing actions that squeezed retail profit per vehicle. Revenue rose 19.5% to $7.9 billion in the quarter ended August 31, 2026, part of financial year 2027, while net earnings reached $165.3 million. Behind that growth, retail used vehicle sales volumes increased 13.8%, although pricing actions reduced gross profit per vehicle by $111 to $2,105. Alongside those vehicle sales, extended protection plan margins rose $46 to $623 per retail vehicle sold. Financing also contributed, with CarMax Auto Finance income rising 32.1% to $135.6 million, helped by lower loan-loss provisions and a $16.6 million auto loan sale gain. Chief Executive Keith Barr cited expanded Tier 2 financing, digital improvements, and lower overhead costs per vehicle as factors supporting earnings growth. Selling, general and administrative costs per vehicle fell 8.8%, with management targeting $200 million in exit rate savings by the end of financial year 2027. Citing stronger performance and improving leverage, the retailer plans to resume modest third-quarter share repurchases, with $1.31 billion remaining under its authorization. Management will detail its growth strategy, key initiatives, and milestones at a virtual strategic update on November 3. Continue reading