CarMax (KMX) Q4 2026 earnings summary

Executive summary

• Keith Barr was appointed President and CEO effective March 16, 2026, marking a leadership transition focused on customer-centric, technology-driven growth and operational urgency.

• Leadership transition completed, with Tom Folliard as Interim Executive Chair until June 2026.

• Emphasis on improving sales trends through price reductions, enhanced marketing, and digital enhancements.

• Combined retail and wholesale unit sales rose 0.7% year-over-year to approximately 304,000 units in Q4.

• Digital capabilities supported over 80% of retail unit sales, with omni-channel and online-only sales growing.

Financial highlights

• Q4 FY26 net sales and operating revenues were $5.95B, down 1% year-over-year; full-year revenues were $25.88B, down 1.8%.

• Q4 gross profit was $605.3M, down 9.4% year-over-year; retail used vehicle gross profit per unit was $2,115, down $207.

• Net loss per diluted share was $0.85, impacted by $0.99 per share goodwill impairment and $0.20 restructuring charges; adjusted EPS was $0.34.

• CarMax Auto Finance income was $143.7M in Q4, down 9.8% year-over-year.

• SG&A expenses were $611.3M, flat year-over-year; adjusted SG&A (excluding restructuring) down 5.4%.

Outlook and guidance

• Used margins for FY27 expected to decline at a rate similar to Q4 FY26 year-over-year trend.

• SG&A exit rate reduction target raised to $200M for FY27, with full annualization expected in FY28.

• Capital expenditures projected at $400M for FY27, down from prior years.

• Four new stores and multiple off-site facilities planned for FY27.

• Share repurchase program paused in Q4, with $1.31B remaining authorized.