KMX earnings analysis
What we found in KMX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
CarMax's Q1 FY2027 results showed robust revenue growth, reaching $8.01 billion, up 6.2% year-over-year, and significantly exceeding the $7.46 billion estimate. Diluted EPS was reported at $1.31, up 5.1% year-over-year and well above the estimated $0.94, signaling operational resilience amidst challenges in profit margins.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Total revenue increased to $8.01 billion, up 6.2% from $7.55 billion in Q1 FY2026.
- Strong EPS Performance
- Diluted EPS rose to $1.31, above the expected $0.94, marking a 5.1% increase year-over-year.
- Decreased SG&A Expenses
- SG&A expenses fell by 3.7% to $635.2 million, contributing to improved operating margins.
- Robust Wholesale Vehicle Sales
- Wholesale revenues grew by 14% driven by an 8.4% increase in unit sales.
- CAF Revenue Consistency
- CAF income slightly decreased by 1.0% to $140.2 million, maintaining stability despite overall revenue growth.
- Inventory Management
- Total inventory decreased to $4.06 billion, a reduction of 1.8%, indicating effective inventory control.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Declining Gross Profit Margins
- Gross profit fell 4.4% to $854.4 million, primarily due to a 9.5% decrease in used vehicle gross profit.
- Increased Interest Costs
- Interest expense rose to $33.8 million compared to $27.1 million last year, reflecting higher outstanding debt.
- Lower Used Vehicle Unit Profits
- Used vehicle gross profit per unit dropped to $2,177, down $230 from the record high in the prior year.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.31
- Gross margin
- 11.8%
- Operating margin
- 4.1%
- Segment
- CarMax Sales Operations
- Segment
- CarMax Auto Finance
What they said about what is next.
No explicit forward guidance provided in the MD&A.
The filing reads better than the one before it.
What came before.
- 10-K · April 15, 2026
- CarMax reiterates its omni-channel, no-haggle used-vehicle retail strategy and scale advantage (256 stores, nationwide digital platform) while operating two segments: CarMax Sales Operations and CarMax Auto Finance…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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