Used car retailer CarMax, Inc. (NYSE: KMX) on Friday reported an increase in sales and profit for the first quarter of fiscal 2026. The company has accelerated the pace of share buybacks.
Net sales and operating revenues increased to $7.55 billion in the first quarter from $7.11 billion in the comparable quarter of FY25. During the quarter, retail used unit sales and comparable store used unit sales increased by 9.0% and 8.1% respectively, while wholesale units rose 1.2%
Net income increased sharply to $210.4 million or $1.38 per share in Q1 from $152.4 million or $0.97 per share in the prior-year quarter, exceeding Wall Street’s estimates by a wide margin.
CarMax purchased around 336,000 vehicles from consumers and dealers, which is up 7.2% year-over-year. Total retail and wholesale used vehicle unit sales increased 5.8% from last year to 379,727, with the company’s digital capabilities supporting around 80% of retail unit sales. It opened two new stand-alone reconditioning/auction centers in the May quarter.
“Our associates, stores, technology, and digital capabilities, all seamlessly tied together, enable us to provide the most customer-centric car buying and selling experience. This is a key differentiator in a very large and fragmented market that positions us to continue to drive sales, gain market share, and deliver significant year-over-year earnings growth for years to come,” said CarMax’s CEO Bill Nash.