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CarMax Gears Up to Report Q2 Earnings: Here's What to Expect
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Key Takeaways
CarMax will report Q2 fiscal 2026 results on Sept. 25, before market open.
Consensus sees EPS at $1.03 and revenues at $7.05B, both up year over year.
Service margins improved, but lower wholesale prices may pressure results.
CarMax, Inc. (KMX - Free Report) is slated to release second-quarter fiscal 2026 results on Sept. 25, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.03 and $7.05 billion, respectively.
For the fiscal second quarter, the consensus estimate for CarMax’s earnings has moved down a penny in the past seven days. Its bottom-line estimates imply 21.2% growth from the year-ago reported numbers.
The Zacks Consensus Estimate for KMX's quarterly revenues implies year-over-year growth of 0.6%. The company's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 11.61%. This is depicted in the graph below:
In the first quarter of fiscal 2026, KMX’s adjusted EPS of $1.38 beat the Zacks Consensus Estimate of $1.18 and increased from 97 cents reported in the year-ago quarter. The company reported net sales of $7.55 billion, which topped the Zacks Consensus Estimate of $7.52 billion. The top line also rose 6% year over year.
Things to Note Ahead of KMX’s Q2 Release
In the fiscal first quarter, CarMax’s service gross margin improved $30 million year over year. The company started charging certain fees to offset cost pressures it experienced last year and continues to drive process improvements and efficiencies in the service business as committed annually, which led to improvement in year-over-year service margin performance. KMX expects service business to steadily drive margin improvements through cost recovery, operating leverage and ongoing efficiency initiatives. Expected rise in service gross margin is likely to have boosted the performance of CarMax in the to-be-reported quarter.
Per S&P Global Mobility, the average age of light vehicles in the United States has risen to 12.8 years in 2025 from 12.6 years in 2025. The rising average age of vehicles reduces demand for vehicles in the wholesale channel, which can soften prices. Average selling price of KMX’s wholesale vehicle declined to $7,959 in the fiscal first quarter from $8,094 in the year-ago period. As a result, wholesale vehicle gross profit per unit declined to $1,047 from $1,064 reported in the year-ago quarter. Amid the high average age of vehicles, the average selling price of vehicles is expected to have remained low. A lower expected average selling price is likely to have impacted CarMax’s margin performance in the fiscal second quarter.
Earnings Whispers for KMX
Our proven model does not conclusively predict an earnings beat for CarMax for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
KMX’s Earnings ESP: KMX has an Earnings ESP of -6.67%. This is because the Most Accurate Estimate is pegged lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank of KMX: It currently carries a Zacks Rank #3 (Hold).
The company is slated to post fourth-quarter fiscal 2025 earnings on Sept. 23. The Zacks Consensus Estimate for earnings is pegged at $50.52 per share.
AZO’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 4.91%.
THOR Industries, Inc. (THO - Free Report) has an Earnings ESP of -0.43% and a Zacks Rank #3 at present. The company is slated to post fiscal fourth-quarter 2025 earnings on Sept. 24. The Zacks Consensus Estimate for earnings is pegged at $1.16 per share.
THO’s earnings surpassed estimates in two of the trailing four quarters and missed twice, the average negative surprise being 24.07%.
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CarMax Gears Up to Report Q2 Earnings: Here's What to Expect
Key Takeaways
CarMax, Inc. (KMX - Free Report) is slated to release second-quarter fiscal 2026 results on Sept. 25, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $1.03 and $7.05 billion, respectively.
For the fiscal second quarter, the consensus estimate for CarMax’s earnings has moved down a penny in the past seven days. Its bottom-line estimates imply 21.2% growth from the year-ago reported numbers.
The Zacks Consensus Estimate for KMX's quarterly revenues implies year-over-year growth of 0.6%. The company's earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 11.61%. This is depicted in the graph below:
CarMax, Inc. Price and EPS Surprise
CarMax, Inc. price-eps-surprise | CarMax, Inc. Quote
Highlights of KMX’s Q1 Results
In the first quarter of fiscal 2026, KMX’s adjusted EPS of $1.38 beat the Zacks Consensus Estimate of $1.18 and increased from 97 cents reported in the year-ago quarter. The company reported net sales of $7.55 billion, which topped the Zacks Consensus Estimate of $7.52 billion. The top line also rose 6% year over year.
Things to Note Ahead of KMX’s Q2 Release
In the fiscal first quarter, CarMax’s service gross margin improved $30 million year over year. The company started charging certain fees to offset cost pressures it experienced last year and continues to drive process improvements and efficiencies in the service business as committed annually, which led to improvement in year-over-year service margin performance. KMX expects service business to steadily drive margin improvements through cost recovery, operating leverage and ongoing efficiency initiatives. Expected rise in service gross margin is likely to have boosted the performance of CarMax in the to-be-reported quarter.
Per S&P Global Mobility, the average age of light vehicles in the United States has risen to 12.8 years in 2025 from 12.6 years in 2025. The rising average age of vehicles reduces demand for vehicles in the wholesale channel, which can soften prices. Average selling price of KMX’s wholesale vehicle declined to $7,959 in the fiscal first quarter from $8,094 in the year-ago period. As a result, wholesale vehicle gross profit per unit declined to $1,047 from $1,064 reported in the year-ago quarter. Amid the high average age of vehicles, the average selling price of vehicles is expected to have remained low. A lower expected average selling price is likely to have impacted CarMax’s margin performance in the fiscal second quarter.
Earnings Whispers for KMX
Our proven model does not conclusively predict an earnings beat for CarMax for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
KMX’s Earnings ESP: KMX has an Earnings ESP of -6.67%. This is because the Most Accurate Estimate is pegged lower than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank of KMX: It currently carries a Zacks Rank #3 (Hold).
Earnings Whispers for Other Auto Stocks
AutoZone, Inc. (AZO - Free Report) has an Earnings ESP of -0.33% and carries a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company is slated to post fourth-quarter fiscal 2025 earnings on Sept. 23. The Zacks Consensus Estimate for earnings is pegged at $50.52 per share.
AZO’s earnings missed estimates in each of the trailing four quarters, the average negative surprise being 4.91%.
THOR Industries, Inc. (THO - Free Report) has an Earnings ESP of -0.43% and a Zacks Rank #3 at present. The company is slated to post fiscal fourth-quarter 2025 earnings on Sept. 24. The Zacks Consensus Estimate for earnings is pegged at $1.16 per share.
THO’s earnings surpassed estimates in two of the trailing four quarters and missed twice, the average negative surprise being 24.07%.