CarMax posts 73% profit gain as vehicle sales rise

Shares climb 7.4% as CarMax plans buyback resumption

CarMax reported its fiscal second-quarter profit rose 73% year-over-year as the nation’s largest used-car retailer sold more vehicles at higher prices, with results that beat Wall Street expectations on both the top and bottom lines.

The company reported net earnings of $165.3 million, or $1.16 a share, for the three months ended Aug. 31, up from $95.4 million a year earlier. Per-share earnings came in ahead of the 73 cents analysts polled by FactSet had expected, according to the Wall Street Journal. Net sales and operating revenue rose 19% to $7.88 billion, topping the $7.09 billion projected by analysts.

CarMax sold 387,735 combined retail and wholesale vehicles in the quarter, up 15% from a year earlier. Average selling prices rose alongside volume: used vehicles climbed 6.3% to $27,623, while wholesale vehicles ticked up 1.8% to $8,036.

Shares rose 7.4% to $60.75 in premarket trading following the report.

The performance comes under Chief Executive Keith Barr, a former hospitality executive who took over in March with a mandate to reinvigorate the business. Barr said CarMax “continues to execute against” its turnaround strategy. Under the plan the company calls “Shift into GEAR,” CarMax aims to provide customers a “great offering” and an “easy experience,” price vehicles competitively, and improve both in-store and digital capabilities while cutting costs.

Earlier this month, CarMax cut 145 white-collar positions — about 4% of its corporate staff — in the first layoff action under Barr. The reductions marked the company’s third round of job cuts in less than a year, following 350 cuts in October 2025 and 230 in January 2026.

The turnaround effort is unfolding against a backdrop of high prices and rising interest rates for auto sellers. New-vehicle prices crossed $50,000 on average in recent years, fueling demand for used cars, but higher interest rates and rising fuel prices could lead more people to postpone any kind of car purchase, the Journal reported.

CarMax said it plans to resume share repurchases during the current quarter. The company had $1.31 billion remaining under its existing buyback authorization as of the end of the recent quarter.