The EPS beat is massive both in percentage and absolute terms, driven by revenue upside and expense control, but the underlying retail gross profit per unit decline signals competitive pressure that may cap stock upside. Watch the upcoming late-Fall Strategic Update for detail on pricing and margin trajectory. The $500M term loan refinancing is credit-positive and removes near-term refinancing risk.
Price Chart
Executive Summary
CarMax reported Q1 FY2027 EPS of $1.31, a 38.8% beat vs $0.94 consensus, on revenue of $8.01B (7.8% above $7.43B consensus, up 6.2% YoY). Net earnings declined 11.8% YoY to $185.6M due to lower retail gross profit per unit (down $230 to $2,177) and higher interest expense, but the EPS beat was driven by aggressive share repurchases (diluted share count down 6.9% YoY). The company also raised $500M in a term loan to pay down revolver borrowings, a credit-positive liability management move that modestly extends debt maturity.
Key Financial Metrics
Key Facts
- Q1 FY2027 EPS of $1.31 beat consensus of $0.94 by 38.8%; GAAP diluted EPS was $1.31 (same as Street)
- Revenue of $8.01B beat consensus of $7.43B by 7.8%, up 6.2% YoY
- Total unit sales rose 3.3% YoY to 392,357; wholesale units grew 8.4%, retail used units flat
- Retail used gross profit per unit fell $230 YoY to $2,177 (7.8% margin vs 9.1% prior year), reflecting pricing actions
- SGA expenses fell 3.7% YoY to $635.2M; SGA per total unit improved 6.8% to $1,619
- CAF income was $140.2M, down 1% YoY, but penetration expanded 150bps to 43.3%
- No shares repurchased in Q1; $1.31B remaining on buyback authorization
- Entered $500M term loan on June 15, 2026 maturing June 2029, proceeds used to pay down revolver
- Net earnings fell 11.8% YoY to $185.6M; net cash from operations dropped sharply to $17.6M from $299.5M due to loan portfolio growth
Financial Impact
EPS of $1.31 vs $0.94 consensus (+$0.37, +38.8%); revenue of $8.01B vs $7.43B consensus (+$0.58B, +7.8%)
Risk Factors
- Retail used GPU declining $230 YoY — pricing actions to drive volume are compressing margins
- Comparable store used unit sales declined 0.8% — core retail demand is not growing
- Operating cash flow collapsed to $17.6M from $299.5M a year ago as auto loans held for sale grew $518M
- CAF provisioning increased to $95.6M (from $101.7M) and allowance ratio rose to 2.95% from 2.78%
- Share buyback is paused; capital return to shareholders is deferred
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001170010-26-000053 |
| Document: kmx-20260617.htm | 0001170010-26-000053 |
| Document: 0001170010-26-000053-index-headers.html | 0001170010-26-000053 |
| Document: 0001170010-26-000053-index.html | 0001170010-26-000053 |
| Document: 0001170010-26-000053.txt | 0001170010-26-000053 |
| 8-K Data (Synthetic) | 0001170010-26-000053 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | Press Release | $58.06 $62.64 | ▲ +7.89% | ▲ +7.29% | $54.92 (−5.41%) |
Jun 26, 2026 14w ago | Insider Cluster | $53.15 $58.29 | ▲ +9.67% | ▲ +9.95% | $54.92 (+3.33%) |
Jun 24, 2026 14w ago | 8-K | $52.90 $58.39 | ▲ +10.38% | ▲ +9.85% | $54.92 (+3.82%) |
Jun 17, 2026 15w ago | 8-K | $47.43 $58.47 | ▲ +23.28% | ▲ +21.96% | $54.92 (+15.79%) |
May 12, 2026 20w ago | 8-K | $37.03 $51.57 | ▲ +39.28% | ▲ +39.90% | $54.92 (+48.33%) |
Apr 14, 2026 24w ago | 8-K | $41.52 $39.08 | ▲ +5.87% | ▲ +12.16% | $54.92 (−32.29%) |
Apr 1, 2026 26w ago | Press Release | $40.28 $38.35 | ▼ −4.78% | ▼ −14.50% | $54.92 (+36.36%) |
Mar 17, 2026 28w ago | DEFA14A | $41.62 $40.46 | ▼ −2.79% | ▼ −8.83% | $54.92 (+31.97%) |
Mar 11, 2026 29w ago | DEFA14A | $40.97 $46.50 | ▲ +13.50% | ▲ +11.52% | $54.92 (+34.07%) |
US Market Status
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