CarMax (KMX) stock rallied on Friday following the release of the used car retailer’s Fiscal Q1 2026 earnings report. The company reported diluted earnings per share of $1.38, which beat Wall Street’s estimate of $1.16. It’s also a 42.3% increase year-over-year from 97 cents.
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Adding to the positive earnings report was revenue of $7.55 billion, another beat compared to analysts’ estimate of $7.5 billion. CarMax’s revenue also grew 6.1% year-over-year from $7.11 billion. This was fueled by a 7.4% rise in used-vehicle sales.
KMX stock was up 10.88% in pre-market trading following its strong Q1 earnings report. However, the shares are still down 21.32% year-to-date and 10.19% over the past 12 months.
CarMax Stock Guidance
CarMax doesn’t include guidance in its most recent earnings report. The company stopped including an outlook in its previous earnings report, citing macroeconomic issues, such as the ongoing trade war. Even so, investors know that Wall Street expects EPS of $1.04 on revenue of $7.23 billion in its Fiscal Q2 2025 earnings report.
CarMax’s chances of meeting those expectations are mixed. Looking at its earnings history, the company has alternated between beating and missing EPS estimates over the past nine quarters. The same is true for its revenue, which has matched or beaten estimates in four of its eight most recent quarters.
Is CarMax Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for CarMax is Moderate Buy, based on 10 Buy, one Hold, and two Sell ratings over the past three months. With that comes an average KMX stock price target of $82, representing a potential 27.47% upside for the shares. These ratings and price targets will likely change as analysts update their coverage of the company following its earnings report.
