Key Highlights

● Net sales and operating revenues were $7.88 billion, up 19.5%.

● Used retail units rose 13.8% to 227,391.

● Diluted earnings per share were $1.16, against $0.64 a year earlier.

● Gross profit per retail used unit fell $111 to $2,105.

CarMax (NYSE:KMX) reported second-quarter fiscal 2027 results on 29 September 2026 for the quarter ended 31 August 2026. Net sales and operating revenues were $7,877.9 million, up 19.5% from $6,594.7 million, as volume growth was strong across retail and wholesale.

Strong Unit Volumes

Used retail units rose 13.8% to 227,391, and comparable-store used units rose 13.0%. Wholesale units rose 15.9% to 160,344. Combined retail and wholesale units were 387,735, up 14.7%. Management said results reflected solid execution and early progress on its four-pillar growth strategy, Shift into GEAR.

Profit Per Unit and Earnings

Margin per car was lower. Gross profit per retail used unit was $2,105, down $111 from a year earlier, and gross profit per wholesale unit was $858, down $135. Extended protection plan margin per retail unit was $623, up $46. Even so, diluted earnings per share rose 81.3% to $1.16 from $0.64.

CarMax Auto Finance income rose 32.1% to $135.6 million. The finance arm lends to buyers of the cars the company sells, so it is a significant part of profit alongside retail and wholesale.

Buybacks and Footprint

CarMax made no share repurchases in the quarter. It plans to resume repurchases at a modest level in the third quarter of fiscal 2027, and $1.31 billion remained under the authorisation at 31 August 2026. The company now has more than 255 store locations. It opened an offsite auction centre and store in Conroe, Texas and a store in Richland, Washington during the quarter, and opened a store in Austin, Texas after quarter-end.

Risks to Track

Falling gross profit per unit shows that growth came with thinner margins per car. Results also rely on consumer financing conditions and on wholesale pricing.

Margin Per Unit as the Test

The next checkpoint is whether gross profit per unit stabilises as volumes grow, how finance income develops, and the pace and size of the resumed buybacks.