Overview

• CarMax reported Q4 earnings of $0.58 per share on $6 billion in revenue, missing analyst expectations of $0.68 EPS and 312,800 vehicle sales.
• The company suspended timelines for its long-term growth targets, citing trade volatility and broader macroeconomic uncertainties.
• Retail used vehicle sales rose 6.2% year-over-year, but overall sales and profit fell short of projections due to higher borrowing costs and cautious consumer spending.
• CarMax is expanding its inventory of used vehicles priced under $20,000 to address shifting consumer demand driven by new auto tariffs.
• Following the earnings report, CarMax shares experienced a sharp decline, dropping nearly 20%—one of its steepest single-day losses since the pandemic.