CarMax reported gains across most key metrics in the first quarter of fiscal 2027 as the company leaned into its four-pillar growth strategy.
The details: Combined retail and wholesale unit sales rose 3.3% year over year to 392,357 vehicles, while total net revenue increased 6.2% to $8.0 billion.
Wholesale vehicle sales increased 8.4% to 162,064 units, while retail used-vehicle sales rose slightly to 230,293 units from 230,210.
Total retail used-vehicle revenue increased 4.7%, driven by a roughly $1,200 increase in average retail selling price, or 4.5%.
Wholesale revenue climbed 14.0%, with average wholesale selling prices increasing by about $400 per unit, or 5.1%.
Wholesale gross profit increased 8.3% year over year, while wholesale gross profit per unit held steady at $1,046.
Total gross profit declined 4.4% to $854.4 million, with retail gross profit per used vehicle falling $230 year over year to $2,177.
What they’re saying: “I came to CarMax because I saw a strong foundation, an award-winning, people-first culture, and significant potential to unlock growth," said Keith Barr, President and Chief Executive Officer. “Three months in, I am more convinced than ever that this is a business with everything it needs to thrive."
Why it matters: CarMax's results show that demand for used vehicles remains stable, underscoring both opportunities and intensifying competition in the used-vehicle segment for dealers.
Between the lines: CarMax is making operational changes aimed at driving sustainable growth through its four-pillar strategy: enhancing customer offerings, simplifying the buying experience, increasing value per transaction, and improving efficiency.
CarMax purchased approximately 322,000 vehicles from consumers and dealers, down 4.4% year over year. About 281,000 vehicles were acquired from consumers, and 41,000 through dealers.
The company's digital capabilities supported 84% of retail unit sales during the quarter. Omnichannel transactions accounted for 70% of retail sales, while fully online sales represented 14%.
Selling, general, and administrative expenses fell 3.7% to $635.2 million, while SG&A per total unit improved 6.8% to $1,619.
CarMax Auto Finance financed 43.3% of units sold during the quarter, up from 41.8% a year earlier.
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What they’re saying: “We are entering this fiscal year with a clear strategy that is driving early results,” said Barr. “We have identified four strategic pillars that will meaningfully improve how we operate at scale and support strong performance. Our goal is clear: deliver strong unit sales and earnings growth that enables us to consistently reward our shareholders.”
Bottom line: CarMax's results suggest that used-vehicle demand remains resilient, but profitability pressures persist, signaling that success in the current market increasingly depends on balancing pricing discipline with digital capabilities, financing options, and operational efficiency.
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