CarMax posts higher revenue, unit sales and EPS in Q2

What happened

CarMax, Inc. (NYSE: KMX) reported second-quarter fiscal 2027 results on September 29, 2026. Total net revenues rose 19.5% to $7.88 billion, and combined retail and wholesale unit sales reached 387,735, up 14.7% from the same quarter a year ago. Net earnings per diluted share increased to $1.16 from $0.64.

CarMax said it plans to resume share repurchases in the third fiscal quarter of this year. CarMax Auto Finance income rose 32.1% to $135.6 million, and the lender financed 22% of Tier 2 volume. The company said it was the largest lender in this space. Second-quarter gross profit was $799.5 million, up 11.4%, while gross profit per retail used unit fell to $2,105 from $2,216.

After 3-day payoffs, CAF financed 40.9% of units sold, down from 42.6% in the prior-year second quarter, and its weighted average contract rate was 11.8%.

Key numbers

Metric	Latest	Change	Source
Total net revenues	$7.88 billion	from $6.59 billion, +19.5%	Q2 FY27 earnings release
Combined retail and wholesale unit sales	387,735 vehicles	from 338,031 vehicles, +14.7%	Q2 FY27 earnings release
Gross profit	$799.5 million	from $717.7 million, +11.4%	Q2 FY27 earnings release
CarMax Auto Finance income	$135.6 million	from $102.6 million, +32.1%	Q2 FY27 earnings release
Net earnings per diluted share	$1.16	from $0.64, +81.3%	Q2 FY27 earnings release

Read more: CarMax (KMX) stock analysis and investment case

Why it matters

OptimistFi's case is that CarMax is a cyclical recovery thesis on whether its no-haggle, broad-selection used-car model can regain unit volume and protect gross profit as affordability and credit conditions normalize. This filing supports that view because sales, revenue and earnings all increased in the quarter, and CarMax Auto Finance income climbed 32.1% to $135.6 million.

Using the filing's figures, total net revenues increased by $1.28 billion from the prior-year quarter. The main caveat is that margin recovery is not complete. Gross profit per retail used unit fell to $2,105 from $2,216, reflecting pricing actions. The allowance for loan losses rose to 3.07% of auto loans held for investment. The quarter shows a volume-led improvement, not a full margin recovery yet.

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What's next

CarMax will host a virtual Strategic Update on November 3rd at 8:00 a.m. ET. It said it will provide details on its strategy for growth, key initiatives and milestones. Registration details will be available in the days ahead.

It plans to release third-quarter fiscal 2027 results on December 17, 2026, before the opening of trading on the New York Stock Exchange, with a conference call at 8:00 a.m. ET. Follow-through on repurchases and the November update would support the recovery case. A delay would leave it less supported.

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