CarMax set to report Q1 earnings amid cautious optimism
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 06 2026
0mins
Source: seekingalpha
CarMax Inc (KMX) has seen its stock rise by 3.02% as it reaches a 20-day high, reflecting positive investor sentiment ahead of its upcoming earnings report.
The company is scheduled to announce its Q1 earnings on June 17, with analysts projecting an EPS of 94 cents. This forecast indicates a cautiously optimistic outlook for CarMax's profitability, despite a slight expected decline in revenue to $7.42 billion from last year's $7.55 billion. The anticipated earnings report is generating interest among market participants, who are keen to assess the company's performance amidst increasing competition and changing consumer demand.
As CarMax prepares for its earnings release, the market's positive momentum, reflected in the S&P 500 and Nasdaq-100 gains, may bolster investor confidence. However, the company faces challenges in achieving revenue growth, which could impact its stock performance in the near term.
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Analyst Views on KMX
Wall Street analysts forecast KMX stock price to fall
13 Analyst Rating
0 Buy
10 Hold
3 Sell
Hold
Current: 50.210
Low
24.00
Averages
33.60
High
37.00
Current: 50.210
Low
24.00
Averages
33.60
High
37.00
About KMX
CarMax, Inc. is a retailer of used autos. The Company operates through two segments: CarMax Sales Operations and CarMax Auto Finance (CAF). The CarMax Sales Operations segment consists of all aspects of its auto merchandising and service operations. The CarMax Sales Operations segment sells used vehicles, purchases used vehicles from customers and other sources, sells related products and services, and arranges financing options for customers. The CAF segment consists solely of its own finance operation that provides financing for customers buying retail vehicles from the Company. The CAF segment also services all auto loans, it originates and is responsible for providing billing statements, collecting payments, maintaining contact with delinquent customers, and arranging for the repossession of vehicles securing defaulted loans. It provides customers with a range of other related products and services, including extended protection plan (EPP) products and vehicle repair services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Volunteer Participation Rate: In fiscal year 2026, 100% of CarMax locations participated in volunteer programs, with over 75% of associates engaging in one or more community initiatives, showcasing the employees' passion and commitment to their communities, thereby strengthening the company's community ties.
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- Automotive Sales Performance: As of February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles, while originating $8 billion in auto loans during fiscal 2026, further solidifying its leadership position in the automotive retail market.
- Corporate Social Responsibility: CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 22 consecutive years, showcasing its success in employee experience and community relations, emphasizing the company's role as a positive force in society.
See More
CarMax Stock Surges 13% After Analyst Upgrades
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- Analyst Rating Upgrades: J.P. Morgan raised its price target for CarMax to $38 while maintaining a sell rating, whereas Baird increased its target from $48 to $55, reflecting analysts' confidence in the company's future performance.
- Key Analyst Adjustment: Stephens analyst Jeff Lick upgraded CarMax's rating from equal weight to overweight and significantly raised his price target to $66, acknowledging its strong market position despite competitive pressures.
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See More
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- Analyst Rating Adjustments: J.P. Morgan raised its price target for CarMax to $38 while maintaining a sell rating, whereas Baird increased its target from $48 to $55, reflecting a more optimistic outlook on CarMax's future performance.
- Positive Analyst Outlook: Analyst Jeff Lick from Stephens upgraded CarMax's rating from equal weight to overweight and significantly raised his price target to $66, asserting that CarMax will continue to attract customers as the leading used-car retailer, despite facing some market challenges.
- Quarterly Performance: CarMax reported a 6% year-over-year revenue growth in Q1 of fiscal 2027, showcasing resilience in a challenging auto sales environment, and if it can sustain this growth, its stock is expected to perform well.
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- Earnings Beat: CarMax reported Q1 revenue exceeding $8 billion and earnings per share of $1.31, both comfortably surpassing market expectations, indicating strong performance in the used car retail sector that may attract more investor interest.
- Analyst Upgrades: At least eight Wall Street analysts raised their price targets on CarMax, including one bullish upgrade, reflecting optimistic market sentiment regarding the company's future growth potential, which could drive further stock price increases.
- New CEO's Strategic Plan: New CEO Keith Barr unveiled a four-pillar strategy, with details to be announced in the fall, which analysts believe will help lower costs and improve customer conversion rates, thereby driving profit growth.
- Shifting Market Sentiment: Retail investor sentiment towards KMX stock shifted from 'bearish' to 'neutral', indicating a gradual restoration of confidence in the company's future despite a nearly 19% decline in stock price over the past year.
See More
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- Levi Strauss Stock Performance: Levi Strauss shares have risen 25% over the past three months but are down 3.6% from the July 1 high, indicating increased market volatility as investors await the upcoming earnings report.
- SK Hynix Listing Update: SK Hynix is set to list in the U.S. on Friday, holding a 25% weighting in the iShares MSCI South Korea ETF, which has dropped 18% since June 18 yet is up nearly 160% year-to-date, reflecting strong market interest in the semiconductor sector.
- Used Car Market Trends: CarMax shares are down 27% from last July's high, despite an 8% increase over the past month, while Carvana has fallen 30% since January, indicating ongoing pressure in the used car market.
- Costco Sales Data Preview: Costco is scheduled to release monthly sales data on Wednesday, with shares down 2.5% in the past month and 13% from the May high, prompting investors to monitor sales performance for future earnings assessments.
See More
CarMax Recognized as 2026 Civic 50 Honoree for Community Engagement
- Community Engagement Recognition: CarMax has been honored by Points of Light as a 2026 Civic 50 honoree, recognizing its excellence in employee volunteering, community investment, and social impact strategy, reflecting the company's strong commitment to corporate social responsibility.
- Volunteer Participation Rate: In fiscal year 2026, 100% of CarMax locations participated in volunteer programs, with over 75% of associates engaging in one or more community initiatives, showcasing the employees' passion and commitment to their communities, thereby strengthening the company's community ties.
- Sales Performance: As of February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles at auctions, while CarMax Auto Finance originated $8 billion in auto loans during fiscal 2026, further solidifying its leadership position in the automotive retail market.
- Corporate Culture and Responsibility: CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 22 consecutive years, demonstrating its success in employee experience and corporate social responsibility, indicating a positive cycle between driving social impact and achieving business success.
See More
CarMax Recognized as 2026 Civic 50 Honoree for Community Engagement
- Community Engagement Recognition: CarMax has been honored by Points of Light as a 2026 Civic 50 honoree, recognizing its excellence in employee volunteering and community investment, which underscores the company's commitment to social impact.
- Volunteer Participation Rate: In fiscal year 2026, 100% of CarMax locations participated in volunteer programs, with over 75% of associates engaging in at least one community initiative, reflecting the company's culture of valuing community involvement and employee engagement.
- Automotive Sales Performance: As of February 28, 2026, CarMax sold approximately 780,000 used vehicles and 540,000 wholesale vehicles, while originating $8 billion in auto loans during fiscal 2026, further solidifying its leadership position in the automotive retail market.
- Corporate Social Responsibility: CarMax has been recognized as one of the Fortune 100 Best Companies to Work For® for 22 consecutive years, showcasing its success in employee experience and community relations, emphasizing the company's role as a positive force in society.
See More
CarMax Stock Surges 13% After Analyst Upgrades
- Stock Rebound: CarMax's stock surged 13% on Thursday after a 9% drop the previous day, indicating a positive market reaction to its earnings report despite initial negative sentiment.
- Analyst Rating Upgrades: J.P. Morgan raised its price target for CarMax to $38 while maintaining a sell rating, whereas Baird increased its target from $48 to $55, reflecting analysts' confidence in the company's future performance.
- Key Analyst Adjustment: Stephens analyst Jeff Lick upgraded CarMax's rating from equal weight to overweight and significantly raised his price target to $66, acknowledging its strong market position despite competitive pressures.
- Strong Performance: CarMax reported a 6% year-over-year revenue growth in its first quarter, and if it can sustain this growth, its stock is expected to perform well in a challenging auto sales environment.
See More
CarMax Shares Surge 13% as Analysts Upgrade Outlook
- Stock Price Rebound: CarMax shares surged 13% on Thursday after a 9% drop the previous day, indicating a recovery in investor confidence regarding its growth potential despite an initial negative reaction to its earnings report.
- Analyst Rating Adjustments: J.P. Morgan raised its price target for CarMax to $38 while maintaining a sell rating, whereas Baird increased its target from $48 to $55, reflecting a more optimistic outlook on CarMax's future performance.
- Positive Analyst Outlook: Analyst Jeff Lick from Stephens upgraded CarMax's rating from equal weight to overweight and significantly raised his price target to $66, asserting that CarMax will continue to attract customers as the leading used-car retailer, despite facing some market challenges.
- Quarterly Performance: CarMax reported a 6% year-over-year revenue growth in Q1 of fiscal 2027, showcasing resilience in a challenging auto sales environment, and if it can sustain this growth, its stock is expected to perform well.
See More
CarMax Q1 Earnings Beat Estimates, Analysts Optimistic About Future
- Earnings Beat: CarMax reported Q1 revenue exceeding $8 billion and earnings per share of $1.31, both comfortably surpassing market expectations, indicating strong performance in the used car retail sector that may attract more investor interest.
- Analyst Upgrades: At least eight Wall Street analysts raised their price targets on CarMax, including one bullish upgrade, reflecting optimistic market sentiment regarding the company's future growth potential, which could drive further stock price increases.
- New CEO's Strategic Plan: New CEO Keith Barr unveiled a four-pillar strategy, with details to be announced in the fall, which analysts believe will help lower costs and improve customer conversion rates, thereby driving profit growth.
- Shifting Market Sentiment: Retail investor sentiment towards KMX stock shifted from 'bearish' to 'neutral', indicating a gradual restoration of confidence in the company's future despite a nearly 19% decline in stock price over the past year.
See More
