CarMax

CarMax is the largest retailer of used cars in the United States. On February 28, 2026, it had 256 used car stores in 110 US television markets, and customers can buy online, in a store or with a mix of both. CarMax buys cars from consumers and dealers, repairs them and sells them at a retail price, and it sells the cars that it does not retail at its own wholesale auctions. It earns more profit from extended protection plans, service and Edmunds, its online car guide.

CarMax Auto Finance (CAF) lends to many of its buyers and held about $16 billion of auto loans, which it funds mostly with non-recourse securitization notes. CAF income comes from the spread between the loan rates and the funding cost, less the provision for loan losses. In fiscal 2026, CarMax sold about 780,000 used cars and 540,000 wholesale cars.

The market prices CarMax for a business that lost its way and must prove that a new plan works. In fiscal 2026, sales and profits fell, the CEO left, and CarMax recorded a $141.3 million goodwill impairment because its share price and outlook fell. Keith Barr became CEO in March 2026 and cut prices to win back buyers, so gross profit per retail car fell to $2,105 in Q2 of fiscal 2027, $111 less than a year earlier. Investors fear that CarMax must give up profit per car to keep its volume, and that CAF loan losses can rise as it lends more to buyers with weaker credit.

For the gap to close, three things must be true. Comparable store used unit sales must keep growing after the 13.0% rise of Q2 while gross profit per retail car stays near the Q2 level. SG&A cuts must reach the $200 million exit rate target by the end of fiscal 2027. CAF loan losses must stay in line with the allowance, which was 3.07% of loans on August 31, 2026, as the Tier 2 loans grow.

At its Strategic Update on November 3, 2026, CarMax set targets through fiscal 2030: retail used unit growth at a mid-single-digit yearly rate and adjusted EPS growth at a mid-teens yearly rate from the fiscal 2026 base of $2.91. The Q3 report on December 17, 2026, gives the next test, and the Q4 report in about April 2027 shows the full year. If the volume gains hold, the gap can close over the next four to six quarters. If price cuts do not keep buyers, or credit losses rise, profits can fall again.

1. Nov 3, 2026Passed

   Strategic Update: growth targetsClear unit, margin and cost targets with dated milestones pass; vague targets or a lower profit outlook fail.Outcome: CarMax set targets through fiscal 2030 for retail used units, adjusted EPS, SG&A savings, gross profit per car and CAF Tier 2 loans, with dated milestones.
2. Dec 17, 2026Pending

   Q3 fiscal 2027 results: volume and profit per carComparable store used unit growth with gross profit per retail car near $2,100 and the start of buybacks pass; falling units or another large drop in profit per car fail.
3. Apr 2027 · est.Pending

   Q4 fiscal 2027 results: full year and SG&A cutsSG&A savings at the $200 million exit rate and CAF loan losses in line with the allowance pass; missed cost targets or a higher loss provision fail.

Every passed and failed checkpoint across all picks

• November 3, 2026CarMax held its Strategic Update. Through fiscal 2030, from a fiscal 2026 base, it targets retail used unit growth at a mid-single-digit yearly rate and adjusted EPS growth at a mid-teens yearly rate. It expects $200 million of run-rate SG&A savings at the end of fiscal 2027, gross profit per retail car steady from fiscal 2027, and capital spending of about $500 million a year from fiscal 2028. CAF plans to make 40% of the loans to CarMax's Tier 2 buyers by fiscal 2030, up from 10%, so CAF income falls in fiscal 2027 because of upfront loss provisions. CarMax keeps a leverage target of 1.5 to 2.0 times and plans to continue share buybacks.
• October 19, 2026CarMax appointed Darren Woodell, the Controller of Genworth Financial, as Vice President, Controller and Chief Accounting Officer from November 11, 2026. The CFO, Enrique Mayor-Mora, stays in his role.
• September 29, 2026CarMax reported Q2 fiscal 2027 results. Revenue rose 19.5% to $7.9 billion, retail used units rose 13.8%, and comparable store used units rose 13.0%. Gross profit per retail used car fell $111 to $2,105 because of price cuts. Diluted EPS was $1.16, up from $0.64. CarMax said that it plans to resume share buybacks at a modest level in Q3 and to hold a Strategic Update on November 3, 2026.

Last earnings

September 29, 2026 (8-K on sec.gov)

Next earnings

December 17, 2026, as the company confirmed.

• 8-KInvestor disclosureFiled November 3, 2026 · kmx-20261103
• 8-KChange of directors or officersFiled October 19, 2026 · kmx-20261019
• 10-QQuarterly report for the period ended Aug 31, 2026Filed September 30, 2026 · kmx-20260831
• 8-KEarnings releaseFiled September 29, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled July 31, 2026 · kmx-20260729
• 8-KChange of directors or officers and Shareholder vote resultsFiled June 24, 2026 · kmx-20260623
• 10-QQuarterly report for the period ended May 31, 2026Filed June 24, 2026 · kmx-20260531
• 8-KEarnings release and New debt or financial obligationFiled June 17, 2026 · Press release and exhibits
• 8-KChange of directors or officersFiled June 8, 2026 · kmx-20260603
• 8-KChange of directors or officersFiled May 12, 2026 · kmx-20260512

Every filing on SEC EDGAR (CIK 1170010)

• CarMax cut prices to win back sales. Gross profit per retail used car fell from $2,216 to $2,105 in Q2 of fiscal 2027. If more price cuts are necessary to keep volume, profits can fall even when sales rise.
• CAF holds about $16 billion of auto loans and now lends more to Tier 2 buyers with weaker credit. A weaker economy or higher unemployment can increase loan losses above the allowance of 3.07% of loans, and CAF depends on the securitization market for funds.
• The CEO, Keith Barr, joined in March 2026, and other senior leaders left. The new strategy is not proven. Its targets through fiscal 2030 assume a stable operating environment, and CarMax expects CAF income to fall in fiscal 2027 as it adds Tier 2 loans.
• Online used car sellers and dealers compete for the same buyers and for the cars that CarMax buys from consumers. Cars bought from consumers were flat in Q2 of fiscal 2027.
• A securities class action, Jason Cap v. CarMax, is pending. CarMax cannot estimate a possible loss.

CarMax has two kinds of debt. CAF funds its auto loans mostly with non-recourse notes, $15,721.3 million at August 31, 2026, which only the loans secure; they are not in debt here. Read more

CarMax does not pay a dividend.

Source: company filings and market data, read on November 13, 2026.