CarMax, Inc. (KMX): Latest Insights Ahead of Q2 2026 Earnings

CarMax, Inc. (KMX), with an impressive market capitalization of $8.6 billion, stands as the leading retailer of used vehicles in the United States and is a prominent player in the wholesale vehicle auction sector. The company operates primarily through two distinct segments: CarMax Sales Operations, which encompasses auto merchandising and related consumer services, and CarMax Auto Finance, which specializes in providing various financing solutions to its customers.

Headquartered in Richmond, Virginia, CarMax is poised to announce its Q2 2026 financial results on Thursday, September 25, before market trading begins. Analysts predict a robust earnings per share (EPS) of $1.03 for the quarter, representing a 21.2% increase from the $0.85 recorded in the same quarter of the previous year. Notably, CarMax has performed well in meeting or exceeding Wall Street’s earnings expectations in three out of the last four quarters, with one instance falling short.

Market Commentary

• Warren Buffett’s Perspective on Insurance Investments

• Trump’s Intel Stock Surge: A Worthy Investment?

• Two ‘Strong Buy’ Stocks with Major Growth Potential

• Stay Informed with the FREE Barchart Brief Newsletter

For the full fiscal year 2026, analysts anticipate that CarMax will report an EPS of $3.89, reflecting an approximate 19% increase from $3.27 achieved in fiscal 2025.

Over the past year, CarMax’s stock has seen a decline of 24.5%, underperforming major indices such as the S&P 500 Index, which has increased by 16.4%, and the Consumer Discretionary Select Sector SPDR Fund, with a return of 19.1% in the same timeframe.

On June 20, CarMax shares experienced a notable increase of 6.6% following the announcement of strong Q1 2026 results, which included a revenue spike of 6% to $7.55 billion and an impressive record EPS of $1.38, up 42% from the previous year. Importantly, comparable sales of used units rose by 8.1%, with 80% of these retail sales being driven digitally. Additionally, the company benefited from improved salesman productivity—by 24%—and a 30% enhancement in customer self-service efficiencies.

Currently, analysts maintain a moderately optimistic view of KMX stock, reflected in its overall “Moderate Buy” rating. Among the 19 analysts monitoring CarMax, nine recommend a “Strong Buy,” three suggest a “Moderate Buy,” five advise a “Hold,” while one each recommends a “Moderate Sell” and a “Strong Sell.” This stance has slightly shifted more positively in recent months, as only eight analysts had previously suggested a “Strong Buy.”