• RBC Capital maintains a "Sector Perform" rating with a price target adjustment from $34 to $37.
• CarMax reports a Q3 fiscal 2026 EPS of $0.51, surpassing estimates but showing a year-over-year decline.
• Despite a 6.9% revenue drop, auto finance income rose by 9.3%, and the company repurchased $201.6 million in shares.

CarMax, Inc. (NYSE:KMX) is a leading retailer of used vehicles in the United States. The company operates through two segments: CarMax Sales Operations and CarMax Auto Finance. It offers a wide range of vehicles and related products and services, including financing. CarMax competes with other used car retailers like AutoNation and Carvana.

On December 19, 2025, RBC Capital maintained its "Sector Perform" rating for CarMax, suggesting investors hold onto their shares. At the time, the stock was priced at $38.54. RBC Capital also adjusted CarMax's price target from $34 to $37, indicating a cautious optimism about the company's future performance.

CarMax's third-quarter fiscal 2026 earnings report showed an EPS of $0.51, beating the Zacks Consensus Estimate of $0.32. However, this was a decline from the previous year's EPS of $0.81. The company's revenues were $5.8 billion, slightly above expectations but down 6.9% year over year, mainly due to a 7% drop in used-vehicle sales.

Despite the revenue decline, CarMax's auto finance income increased by 9.3%, providing some financial stability. The company also repurchased $201.6 million in shares during the quarter, which can be a sign of confidence in its long-term prospects. However, CarMax holds a Zacks Rank #5 (Strong Sell), indicating potential challenges ahead.

Currently, KMX is trading at $38.59, a slight decrease of 1.91% or $0.75. The stock has fluctuated between $37.39 and $38.68 today. Over the past year, KMX has seen a high of $89.47 and a low of $30.26, with a market capitalization of approximately $5.8 billion. The trading volume on the NYSE is 1,164,663 shares.