Why CarMax, Inc. (KMX) Stock Rose 4.7% on Sep 29, 2026
The clearest new catalyst: Fiscal Q2 earnings beat (reported pre-open Sep 29).
Why did KMX stock rise?
CarMax rose 4.74% to $59.23 on Tuesday, September 29, 2026 (from $56.55), after a strong fiscal Q2 (ended August 31) report released before the open. GAAP diluted EPS rose 81.3% to $1.16 (from $0.64), beating the ~$0.73 consensus, with total sales of $7.8779 billion (+19.5%), comparable-store used units up 13.0%, and CarMax Auto Finance income up 32.1%. The stock popped as much as ~12.6% intraday before giving much of it back, and management said it will resume buybacks in fiscal Q3.
- Fiscal Q2 earnings beat (reported pre-open Sep 29): CarMax reported fiscal Q2 (ended August 31) before the open: total net sales and operating revenues of $7.8779 billion (+19.5% YoY), retail used units +13.8%, comparable-store used units +13.0%, and GAAP diluted EPS of $1.16 versus $0.64 a year earlier (+81.3%) — well ahead of the ~$0.73 consensus cited by FactSet/major coverage. $1.16 is the company's GAAP diluted EPS ('net earnings per diluted share'), not an adjusted figure.
- CarMax Auto Finance strength: CarMax Auto Finance income rose 32.1% to $135.6 million. The gain was led by a $28.8 million decline in the loan-loss provision (to $113.4 million), but also benefited from a $16.6 million gain on the sale of auto loans and a $6.1 million year-over-year increase in servicing fees — so lower provisions were the principal, but not the only, driver.
- Turnaround traction and resumed buybacks: Management pointed to early progress under its 'Shift into GEAR' strategy — introduced the prior quarter, not new this week — via sharper pricing and higher unit volume, and said it intends to resume share repurchases at a modest level in fiscal Q3 (after buying none in Q2), with $1.31 billion still authorized.
How the story developed
- Prior quarter (fiscal Q1 2027)CarMax introduces its 'Shift into GEAR' turnaround strategy (background).
- September 29, 2026 (before the open)CarMax reports fiscal Q2 (ended Aug 31): GAAP diluted EPS $1.16 vs $0.64, sales $7.8779B (+19.5%), comps +13.0%, CAF income +32.1%.
- September 29, 2026KMX pops as much as ~12.6% intraday to $63.67, then closes +4.74% at $59.23.
What it could mean for KMX investors
The constructive case
- Double-digit comparable-store unit growth and an 81.3% EPS jump are strong evidence the turnaround is gaining operational traction.
- Resuming buybacks (with $1.31B authorized) signals management confidence and supports EPS.
- Stronger CarMax Auto Finance income diversifies the profit base beyond vehicle margins.
The cautious case & what could invalidate it
- The stock gave back most of a ~13% intraday pop to close +4.74%, suggesting the beat was partly anticipated.
- CAF income was flattered by a lower loan-loss provision plus one-time-ish gains on loan sales, which may not repeat at the same magnitude.
- Used-vehicle demand and affordability remain macro-sensitive, so the momentum needs to persist.
Initial detection
BestStocks first flagged KMX intraday on Sep 29, 2026; this analysis was finalized after the close using the confirmed +4.7% session move and additional catalyst research.
Show the initial intraday note
CarMax, Inc. (KMX) rose 4.74% to close at $59.23 on Tuesday, September 29, 2026 (from $56.55) — after trading as much as ~12.6% higher intraday ($63.67) — following a strong fiscal Q2 (ended August 31) earnings report released before the open. GAAP diluted EPS jumped 81.3% to $1.16 (from $0.64), well above the ~$0.73 consensus, on total sales of $7.88 billion (+19.5%), comparable-store used-unit growth of 13%, and a 32.1% rise in CarMax Auto Finance income.
What to watch next: The quarter is strong evidence the 'Shift into GEAR' turnaround (introduced last quarter, not new this week) is gaining traction, but the stock gave back much of a ~13% intraday pop to close +4.74%, hinting the beat was partly anticipated. Watch whether comparable-store unit growth and CarMax Auto Finance strength hold — CAF income was flattered by a lower loan-loss provision plus a gain on loan sales and higher servicing fees — and note management plans to resume share buybacks at a modest level in fiscal Q3 (with $1.31 billion still authorized).
Frequently asked questions
Why did CarMax, Inc. (KMX) stock rise on Sep 29, 2026?
CarMax rose 4.74% to $59.23 on Tuesday, September 29, 2026 (from $56.55), after a strong fiscal Q2 (ended August 31) report released before the open. GAAP diluted EPS rose 81.3% to $1.16 (from $0.64), beating the ~$0.73 consensus, with total sales of $7.8779 billion (+19.5%), comparable-store used units up 13.0%, and CarMax Auto Finance income up 32.1%. The stock popped as much as ~12.6% intraday before giving much of it back, and management said it will resume buybacks in fiscal Q3.
How much did KMX stock rise on Sep 29, 2026?
KMX rose 4.7% during the Sep 29, 2026 trading session.
What were the main drivers behind KMX's move?
Fiscal Q2 earnings beat (reported pre-open Sep 29); CarMax Auto Finance strength; Turnaround traction and resumed buybacks.