Anticipated Highlights of CarMax's Second Quarter Financial Report for 2026
CarMax, the popular used vehicle retailer based in Richmond, Virginia, is set to announce its fiscal Q2 earnings for 2026 on Thursday, Sep. 25. The company, valued at a market cap of $9 billion, has been making waves in the industry with its strong performance over the past few quarters.
Analysts' consensus for CarMax (KMX) Q2 2026 earnings per share (EPS) is $1.05, representing a 23.5% increase from $0.85 per share in the same quarter last year. This estimate reflects expectations of continued profit growth, following CarMax's recent trend of mostly beating or meeting Wall Street EPS estimates.
The anticipated earnings growth is driven by the company's used vehicle retail operations and related services. CarMax not only sells vehicles but also provides financing, extended warranties, accessories, and repair services.
The mean price target for KMX is $80.62, implying a 33.8% premium from the current levels. Among 18 analysts covering the stock, nine recommend "Strong Buy," three advise "Moderate Buy," and three suggest "Hold."
CarMax's Q1 results were better than expected, with the net income per share rising by 42.3%. The company's overall revenue improved 6.1% year-over-year to $7.5 billion. Moreover, CarMax's gross profit margin expanded by 70 basis points.
The company has a history of exceeding earnings expectations, having met or surpassed Wall Street's bottom-line estimates in three of the last four quarters. For the full fiscal year 2026, analysts expect CarMax to report EPS of $3.91, up 19.6% from $3.27 per share in fiscal 2025. Further EPS growth is projected at 15.9% to $4.53 in fiscal 2027.
It's worth noting that CarMax's shares have declined 27.4% over the past 52 weeks. However, shares of the company closed up 6.6% on Jun. 20, indicating a potential rebound.
As always, it's essential to remember that past performance is not a guarantee of future results. The article was published with no positions in any of the securities mentioned.
In conclusion, CarMax's Q2 2026 earnings announcement promises to be an exciting event for investors and industry watchers alike. With robust growth expectations and a favourable analyst outlook, the stage is set for another potential strong performance from the used vehicle retailer.
- In light of CarMax's strong performance and Q1 results surpassing expectations, interested investors might consider investing in CarMax's stocks for potential returns, given the positive earnings growth projections and the majority of analysts recommending a buy or hold for the stock.
- With CarMax's expansion into personal-finance services such as financing, extended warranties, and repair services, keen observers may also be interested in analyzing the company's growth strategies and their potential impact on long-term business success and personal-finance management.
