CarMax Q2 FY2027 beats: EPS $1.16 vs $0.73 est, revenue $7.9B; resumes buybacks in Q3
What happened
CarMax reported fiscal Q2 2027 results (quarter ended August 31) on Tuesday morning, delivering a major beat: net earnings per diluted share of $1.16, up 81% from $0.64 a year ago and well above the $0.73 Wall Street consensus. Total net revenue rose 19.5% to $7.9 billion, beating the $7.09 billion consensus. Combined retail and wholesale unit sales rose 14.7% to 387,735 units, with retail used units up 13.8% and comparable-store used units up 13.0%. Gross profit per used retail unit was $2,105 ($111 below last year but ahead of the $2,022 Street expectation), reflecting deliberate pricing actions to drive sales. CarMax Auto Finance income jumped 32.1% to $135.6 million. Management announced it will resume share repurchases at a modest level in Q3 FY27 — it bought back no shares in Q2 — citing improved performance, business momentum, and better leverage. The company will also host a virtual Strategic Update on November 3. Shares rose 6.2% Tuesday.
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Who’s affected
- CarMax (KMX): +6.2% Tuesday; earnings beat plus buyback resumption and November 3 strategic update
- Carvana (CVNA), AutoNation (AN), Group 1 Automotive (GPI): sector read-through — CarMax's strong unit volumes and digital execution set the tone for used-auto retail peers