CarMax, Inc. Q1 2026 Earnings Recap

CarMax delivered 6% revenue growth and 42% EPS increase in Q1, driven by strong unit volumes and operational efficiencies, despite a modest decline in average prices.

Key Takeaways

• Retail unit sales rose 9%, with used unit comps up 8.1%, supported by record gross profit per unit amid robust demand.
• Total sales reached $7.5 billion, up 6%, primarily from higher volume offsetting lower average selling prices.
• Digital and omni-channel capabilities supported 80% of retail sales, enhancing customer experience and contributing to record-high NPS scores.
• CarMax Auto Finance originations exceeded $2.3 billion, with a net interest margin of 6.5%, though credit losses increased due to seasonal and economic factors.
• The company doubled share repurchases, expanded gross profit, and maintained a disciplined approach to credit spectrum growth amid challenging macro conditions.