CarMax (KMX) stock fell on Thursday after the used car retailer released its Fiscal Q2 2026 earnings report. That report started with earnings per share of 64 cents, which was well below the $1.04 Wall Street was expecting. It also represented a 24.7% drop year-over-year from 85 cents per share.
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CarMax reported revenue of $6.59 billion during the quarter, which was another miss compared to analysts’ estimate of $7.01 billion. The company’s revenue also decreased 5.99% year-over-year from $7.01 billion. This was due to a 4.1% drop in combined retail and wholesale used vehicle unit sales, including a 5.4% fall in retail used vehicle unit sales and a 2.2% slide in wholesale vehicle unit sales.
CarMax stock was down 9.33% in pre-market trading on Thursday, following a 0.95% drop yesterday. The shares have also fallen 30.22% year-to-date and 27.06% over the past 12 months.
CarMax Guidance
CarMax didn’t include formal guidance in its latest earnings report. However, President and CEO Bill Nash did discuss the company’s future. He stated, “While this was a challenging quarter, we remain confident in our long-term strategy and the strength of the earnings model that we have built.” Nash also pointed out the company’s SG&A efficiency, with a planned minimal “$150 million in incremental SG&A reductions over the next 18 months.”
Is CarMax Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for CarMax is Moderate Buy, based on six Buy, two Hold, and a single Sell rating over the past three months. With that comes an average KMX stock price target of $74.88, representing a potential 31.25% upside for the shares. These ratings and price targets will likely change after analysts update their coverage following today’s earnings report.
