CarMax (NYSE: KMX) Posts $1.31 EPS in Q1, Beating $0.94 Consensus by 39%

CarMax (NYSE: KMX) reported fiscal Q1 EPS of $1.31, clearing the $0.94 analyst consensus by 39%, as revenue of $8.01 billion topped the $7.42 billion forecast. Shares responded with a 4.7% gain in pre-market trading following the release on June 17, 2026.

Q1 2026 Results

• EPS of $1.31 beat the $0.94 consensus estimate by $0.37, a 39% positive surprise.
• Revenue of $8.01 billion exceeded the $7.42 billion analyst forecast and came in above the year-ago period of $7.55 billion.
• Third consecutive quarter of double-digit EPS outperformance: Q1's 40.0% surprise follows a 46.8% beat in the prior quarter and a 34.5% beat in the quarter before that.
• According to Stock Titan, CarMax outlined a four-part growth plan alongside the results, with used-car sales edging higher during the period.

What Drove the Results

EPS of $1.31 beat the $0.94 consensus by approximately $0.37, and revenue of $8.01 billion cleared estimates by roughly $590 million. Both top- and bottom-line figures represented improvement over the year-ago quarter, when revenue stood at $7.55 billion. The consistency of the beat pattern across three consecutive quarters points to execution rather than a one-time item, though the source data does not identify a single segment as the primary driver.

CarMax also disclosed a finance leadership change in an 8-K filed on June 8, 2026, covering the departure or appointment of a director or officer. Separately, simplywall.st flagged the finance leadership shift as a potential factor in how investors assess earnings quality going forward, though no specific figures were attached to that commentary.

Wall Street View

Truist Securities analyst Scot Ciccarelli maintained a Hold rating on CarMax following the results while raising his price target from $37 to $47. The broader analyst consensus as of June 1, 2026 sits at 18 Hold ratings, 7 Sell ratings, 1 Strong Sell, 1 Buy, and 1 Strong Buy, reflecting a cautious overall posture on the stock despite the earnings beat. The forward P/E of 18.7x compares to a trailing P/E of 31.0x, suggesting the market is pricing in meaningful near-term earnings improvement relative to the trailing period.

Investor Takeaway

CarMax delivered EPS of $1.31 against a $0.94 consensus and $8.01 billion in revenue against a $7.42 billion forecast, extending a streak of material quarterly EPS beats. Despite the results, Truist's Scot Ciccarelli held his Hold rating, raising his target to $47 from $37, and the broader Wall Street consensus remains weighted toward Hold and Sell, suggesting analysts see limited upside from current levels even after accounting for the Q1 outperformance.