CarMax Fiscal Second-Quarter Revenue Tops Views Amid Early Progress on Growth Strategy

09:17 AM EDT, 09/29/2026 (MT Newswires) -- CarMax (KMX) reported stronger-than-expected fiscal second-quarter revenue on Tuesday buoyed by a double-digit increase in comparable used-vehicle sales amid early momentum in the company's growth plan. The used-vehicle retailer's sales and operating revenue for the quarter ended August climbed 20% to $7.88 billion, ahead of the Street's view of $7.09 billion. Quarterly earnings jumped to $1.16 per share from $0.64 the year before. Comparable store unit sales gained 13%, compared with a decline of 6.3% in the prior-year quarter. In a client note emailed Monday, Truist Securities forecast CarMax to record unit comparable sales growth of 9% versus a market consensus of 5.5%. The stock rose 5.7% in the most recent premarket activity. In June, CarMax outlined a growth framework focusing on competitive pricing, an improved customer experience, and cost-reduction opportunities. "Our strong second-quarter results reflect solid execution and early progress against shift into gear, our four-pillar strategy to strengthen CarMax's core business and return the company to sustained growth," Chief Executive Keith Barr said in a statement. The company strengthened the competitiveness of its pricing, increased extended protection plan margins and generated "material" selling, general and administrative cost leverage, according to Barr. Retail used-vehicle sales advanced 20% to $6.31 billion in the second quarter, while wholesale used-vehicle revenue increased 19% to $1.36 billion. Both segments benefited from double-digit gains in units sold and higher average selling prices, according to the company. "While the company appears to be experiencing positive elasticity as it focuses on providing more value for consumers, we continue to believe they are in a difficult competitive position," Truist said in its Monday note. The brokerage believed CarMax is caught between Carvana (CVNA), which it said has gained substantial "mind share" among consumers seeking a fully online transaction experience, and more traditional dealers. Carvana reported second-quarter results above market expectations in July. In the same month, AutoNation (AN) posted a year-over-year decrease in its second-quarter revenue.