Filing Flows › CarMax (KMX) › Q2 FY27
CarMax (KMX) Q2 FY27 earnings results (second quarter fiscal 2027)
10-Q filed Sep 30, 2026
CarMax (KMX) reported revenue of $7.9B for the second quarter fiscal 2027 (Q2 FY27), +19% from a year earlier and -2% from the quarter before. Operating margin was 2.8%, net earnings $165M (2.1% of revenue).
CarMax, Q2 FY27: revenue $7.9B (+20% year over year), operating margin 2.8%, net earnings $165M, operating cash flow $883M. The chart follows the revenue to costs, profit and cash.
| Q2 FY27 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $7.9B | -2% | +19% |
| Gross profit | $799M | -6% | +11% |
| Operating profit | $223M | -14% | +76% |
| Net earnings | $165M | -11% | +73% |
| Operating cash flow | $883M | 50× | +12% |
| Free cash flow | $806M | — | +23% |
What changed
Revenue was $7.9B in Q2 FY27, up 19% year over year and down 2% from the previous quarter. Used vehicle sales was the largest line at 80% of revenue. Used vehicle sales added $1.0B year over year (up 20%), 81% of the total change. Advertising & subscription revenues declined 4%.
Gross margin was 10.1%, down 0.7 points from Q2 FY26. Operating profit was $0.22B, a 2.8% margin (up 0.9 points year over year). Of the extra revenue versus Q2 FY26, 7% reached operating profit, above the 2% margin then. Operating expenses fell 2% while revenue rose 19%. Net earnings were $0.17B, up 73% year over year. The effective tax rate was 25.9%.
Operating cash flow was $0.88B (up 12% year over year), 534% of net earnings. Non-cash charges added back $0.10B of depreciation and amortization and $0.03B of share-based compensation. Working capital and other items added $0.59B. Capital expenditures of $0.08B left free cash flow of $0.81B.
Questions
What was CarMax's revenue in the second quarter fiscal 2027?
CarMax (KMX) reported revenue of $7.9B for the second quarter fiscal 2027 (Q2 FY27), +19% from a year earlier and -2% from the quarter before.
Was CarMax profitable in the second quarter fiscal 2027?
Operating profit was $223M (2.8% of revenue) and net earnings $165M.
Source: CarMax 10-Q on SEC EDGAR.