Key Highlights

● CarMax earned $1.16 a share, topping every consensus estimate, which ranged from about $0.68 to $0.75.

● Revenue came in at about $7.9 billion against estimates of roughly $7.03 billion, with retail used-unit sales up strongly.

● CarMax said share repurchases will resume in the fourth quarter, though the reasons for the timing were not detailed.

● CEO Keith Barr said affordability remains on everyone's mind, and consumer confidence fell to its lowest since 2014.

CarMax, Inc. (NYSE:KMX) climbed on Tuesday, September 29, 2026, after the used-car retailer reported fiscal second-quarter results that sailed past Wall Street's expectations and said it will restart share Buybacks in the fourth quarter. Sources differed on the size of the gain, ranging from a solid rise at the close to a much larger jump in some intraday snapshots, but CarMax was one of the day's clear winners.

A Beat on Both Lines

CarMax reported Earnings Per Share of $1.16, well above consensus estimates of about $0.68 to $0.75, so the result topped every forecast comfortably. Revenue came in at about $7.9 billion, compared with roughly $7.03 billion expected. Retail used-unit sales rose strongly and used-vehicle margins recovered. For a company that sells used cars across hundreds of stores and online, unit growth shows whether shoppers are coming through the doors, while margins show how much CarMax earns on each vehicle.

Why the Buyback Matters

Share repurchases will resume in the fourth quarter. A buyback means a company uses cash to purchase its own shares, which reduces the share count and can lift earnings per share over time. Investors often read a restart as a sign of confidence about cash flow, though the reasons behind the timing were not detailed. Chief Executive Keith Barr struck a realistic note on the consumer, saying affordability remains on everyone's mind. Car buyers face high prices and elevated borrowing costs, and any pullback would hit dealers quickly.

A Weak Day for Consumer Confidence

The Conference Board's consumer confidence index fell to 81.9 in September from 88.6 in August, its lowest reading since 2014 and below the 89.2 forecast. LPL Financial's Jeffrey Roach said Americans feel jobs are more scarce and are pulling back on big-ticket purchases. That made CarMax's results all the more striking. Rival Lithia Motors edged higher in sympathy, though no company news was found for that stock.

The Market and Rates

Wall Street drifted lower. The S&P 500 fell 12.85 points to 7,670.84, the Dow Jones Industrial Average lost 131.59 points to 51,349.92 and the Nasdaq Composite ended nearly flat at 26,797.54. The 30-year Treasury Yield reached its highest level since 2002, and the 10-year touched its highest in roughly two decades. Higher yields tend to push up auto Loan rates, which can make it harder for shoppers to afford a vehicle.

Decision Points

New York Fed President John Williams said there is no need for urgency after the central bank's September meeting, and odds of an October rate hike fell to roughly a coin flip. GDP and August PCE arrive on Wednesday, September 30, and the September jobs report follows on Friday, October 2.