CarMax, Inc., the US-based used car retailer, has announced its Q1 2026 earnings, surpassing market forecasts. In a statement released on 15 June, the organisation revealed a profit of $1.32 per share, exceeding analyst estimates of $1.23 per share.
The better-than-expected results were driven by a significant improvement in sales across both the UK and US markets. CarMax attributed the growth to increased demand for used vehicles, as well as its efforts to expand its online presence and improve customer experience.
CarMax's sales revenue for Q1 2026 reached $6.5 billion, a 12% increase from the same period in the previous year. The company's same-store sales also rose by 10% during the quarter, outperforming market expectations.
Analysts at RBC Capital Markets have revised their forecasts for CarMax's full-year earnings upwards, citing the company's strong Q1 results as a positive indicator for the remainder of the year. The upgraded forecasts reflect the potential for continued sales growth, driven by the ongoing demand for used vehicles and CarMax's strategic initiatives.
The improved earnings and sales growth are expected to have a positive impact on CarMax's share price. The stock closed at $114.50 on 15 June, up 5% from the previous day's close.
CarMax's Q1 2026 earnings report provides a positive outlook for the used car retail sector, with analysts expecting continued growth in the UK and US markets. The company's focus on expanding its online presence and improving customer experience is expected to drive further sales growth in the coming quarters.