CarMax just gave the market a consumer-spending surprise.
The used-car retailer reported EPS of $1.16, well above the $0.73 analysts expected. Revenue rose 20% to $7.9 billion, while combined retail and wholesale unit sales climbed 15% to 387,735 vehicles.
That was enough to reframe the $KMX story, at least for the morning. The stock jumped in premarket trading after the report, adding to a year-to-date rally that had already outpaced the broader market.
The operating chart helps explain why. CarMax’s combined unit sales are back above last year’s weak levels, while the stock has moved even faster. Indexed to Q2 FY26, unit sales are up about 15%, while the stock-price index is up roughly 33% using the earnings-reaction quote.
Management also said CarMax is resuming share repurchases “at a modest level,” a small but meaningful signal after pausing buybacks earlier in the year.