EPS Growth

FY '26

no prior guidance

double-digit EPS growth with a CAGR in the high teens on EPS " "

no prior guidance

SG&A Expenses

FY '26

no prior guidance

normalization from the current 90% range back to the mid-70% range over time " "

no prior guidance

Marketing Spend

FY '26

no prior guidance

approximately the same as in FY '25 on a total unit basis "

no prior guidance

Capital Expenditures

FY '26

no prior guidance

approximately $575 million, primarily driven by the timing of land purchases "

no prior guidance

EPP Product Enhancements

FY '26

no prior guidance

small year-over-year increase in per unit EPP margin, with potential for more expansion in fiscal '27 "

no prior guidance

Service Margins

FY '26

no prior guidance

expected to grow year-over-year—predominantly in the first half—and deliver a slight positive profit contribution for the full year "

no prior guidance

CAF Income

FY '26

no prior guidance

expected to grow in FY '26, driven by strong net interest margins and provision growth "

no prior guidance

Operational Efficiency

Consistently discussed across Q1–Q3 with focus on COGS savings, logistics and reconditioning improvements, transportation management system tests, and early AI tool adoptions ( " " " ).

Q4 emphasized realized savings of ~$125 per unit (with plans to double that next fiscal year), enhanced digital tools such as “Sky” achieving over 50% autonomous customer responses, and expanded off-site reconditioning and logistics efficiencies ( " " " ).

Continued focus with amplified digital integration and more aggressive cost-saving targets, indicating an increasingly positive sentiment about margin improvement.

Digital Transformation

Frequently mentioned in Q1–Q3 with initiatives like nationwide rollout of customer shopping accounts, initial tests of AI-powered virtual assistants, and early transportation management process enhancements ( " " " ).

Q4 built on earlier efforts with increased omnichannel retail sales (67%), 25% growth in fully self-progressed online sales, and further rollouts of digital tools (including enhanced online appraisal and EV research tools) ( " " ).

Consistent investment and growth, with sentiment shifting to stronger optimism as digital tools drive higher conversion and operational efficiency.

Revenue Growth

Across Q1–Q3, discussions centered on modest unit volume growth, digital/omnichannel momentum, and early share repurchase initiatives, though Q1 reflected lower sales and unit comps ( " " " ).

Q4 reported robust retail (up 6.2% YoY) and wholesale growth (3.1% YoY), record vehicle purchases from both consumers and dealers, and double-digit EPS growth supported by share repurchases, signaling improved overall performance ( " " ).

Evolving from cautious growth to a more robust, multi-channel revenue expansion strategy with improved sentiment and confidence in long‐term EPS expansion.

Auto Finance

Q1–Q3 discussions highlighted steady CAF income, testing and expansion of full-spectrum credit models (Tier 2 and Tier 3), securitization transactions, and a focus on maintaining net interest margins ( " " " ).

In Q4, CAF income reached $159 million with a slight net interest margin increase, tighter credit risk management (with expectations of higher future provisions), and active non-prime lending expansion through new ABS transactions ( " " ).

Consistently strong performance with progressive enhancements in credit risk controls and non-prime lending strategies, reinforcing a positive long-term outlook.

Vehicle Sourcing

Consistently mentioned in Q1–Q3 with mixed sourcing from consumers and dealers, achieving record dealer volumes in some quarters, diversified buys, and early digital appraisal initiatives (e.g. 99% digital offers) ( " " " " ).

Q4 achieved record dealer sourcing (46,000 vehicles, up 114% YoY) and significant consumer sourcing (223,000 vehicles, with almost all going through digital appraisal), supported by further MaxOffer enhancements and improved inventory management practices ( " " " ).

Strong, consistent execution with enhanced digital integration and further record-setting sourcing numbers, indicating a highly effective and scalable inventory strategy.

Margin Management

Q1 showed some margin pressure (declines in retail and wholesale margins), Q2 was steady, and Q3 reported improvements (increases in retail gross profit per unit and EPP/service margins) ( " " " ).

Q4 reported record retail gross profit per used unit ($2,322) and clear plans for SG&A normalization toward a mid-70% leverage ratio, alongside marked service margin improvements and targeted EPP enhancements ( " " " ).

A gradual improvement trajectory from earlier season fluctuations toward clear cost control and margin expansion strategies, with positive sentiment about reaching normalized SG&A levels.

External Economic Pressures

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Q4 introduced discussions on new car tariffs—projected to widen the price gap between new and used vehicles and increase parts costs—while emphasizing CarMax’s ability to manage inventory amid these uncertainties ( " " ).

Newly introduced in Q4, this topic signals emerging external risks that could impact margins if not offset by operational efficiencies, warranting close future monitoring.

Consumer Demand & Affordability

Q1–Q3 consistently touched on affordability challenges, with discussions on lower-income consumer struggles, shifts toward older or lower-priced vehicles, and early digital and pricing adjustments to support consumer demand ( " " " ).

Q4 highlighted accelerating market share gains in late-model used vehicles, increased omnichannel adoption, and cost-of-goods efficiencies—all in the context of tariffs boosting used car demand and strategies to maintain affordability ( " " " ).

Persistent affordability concerns remain, though enhanced digital tools and cost savings are beginning to mitigate challenges; overall sentiment is cautiously optimistic about demand recovery.