CarMax beat Q2 expectations with $1.31 EPS versus the $0.92 consensus and $8.01 billion revenue against $7.5 billion estimates, driven by an 8.4% wholesale unit surge while retail units stayed flat. Retail gross profit per unit fell $230 year-over-year to $2,177 as pricing cuts and reconditioning efficiencies were deployed, with CarMax Auto Finance penetration rising 150 basis points to 43.3% and extended protection plan margins tracking toward a $35 per-unit gain. Management's four-pillar strategy aims to self-fund lower prices via $200 million in SG&A savings and digital fixes, but analysts question whether wholesale gains mask weak retail demand and if the full plan, deferred until fall, can expand earnings power amid high interest rates.

Company: CarMax, Inc. (KMX) — Q1 FY2027

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