CarMax (KMX) · Q2 2026 results and valuation

At −4.5% growth a year (3-year revenue growth), the model's fair value is $69.64 a share — the stock trades 23% below it. Today's price assumes −8.0% growth a year.

1. Guidance

   KMX expects the positive impact of having the right car at the right price on comp sales to continue through the remainder of the year.

   Source quote

   “Having the right car at the right price is definitely having a positive impact on our comp sales, and we expect that to continue throughout the remainder of the year.”

2. Figure

   KMX delivered total sales of $8 billion in the first quarter, which is up 6.2% compared to last year.

   Source quote

   “During the first quarter, we delivered total sales of $8 billion, up 6.2% compared to last year.”

3. Fading

   KMX adjusted its pricing strategy starting in the fourth quarter to regain competitiveness after prices had drifted too high in the previous quarter.

   Source quote

   “And so as Enrique mentioned, we took several actions immediately at the beginning of the fourth quarter. And we had let our -- as we said at the beginning of last quarter, we kind of had let our prices drift up where we weren't as competitive as we'd like to be. And as you noted, we saw a significant change.”

Typical — about as upbeat as in Q1 2026.

Sentences that drove the tone

“Really excited about the strategy that we have developed as a team to, again, drive sustainable growth, improve profitability, and reward our shareholders over time.”

“Do it in an efficient way so that we grow our profitability and reward our shareholders too.”

“I think the team is aligned behind that fact and our ability to really understand deeply the key drivers of performance and how we can action against those in getting...”