CarMax Stock Sinks 8% After Earnings Beat Fails to Impress

Sarah Lin

·Apr 14 2026, 11:33

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Key Takeaways:

CarMax reported adjusted EPS of 34 cents, beating the 23-cent consensus estimate.
Revenue of $5.95 billion declined 1% year-over-year but surpassed the $5.7 billion forecast.
The stock fell 8.3% as investors reacted to declining sales and same-store revenue.

Shares of CarMax Inc. (KMX) plunged 8.3% on Tuesday after the used-car retailer’s earnings beat was overshadowed by a fourth consecutive year of declining sales.

The results come as new Chief Executive Officer Keith Barr takes the helm, facing pressure to orchestrate a turnaround after activist investor Starboard Value disclosed a $350 million stake last month.

CarMax reported adjusted earnings of 34 cents per share on revenue of $5.95 billion. Same-store used vehicle revenue, a key metric for retail health, declined 2% from a year ago.

Metric	Actual	Consensus	Beat/Miss
Revenue	$5.95B	$5.7B	+4.4%
Adj. EPS	$0.34	$0.23	+$0.11
Same-Store Sales	-2.0%	N/A	N/A

The sharp stock decline puts immediate pressure on the new CEO to deliver a turnaround plan that addresses both costs and the company's digital trade-in experience, key areas highlighted by Starboard.

The negative market reaction despite beating estimates signals deep investor concern over the multi-year revenue decline. Investors will now watch for new CEO Keith Barr's strategic initiatives in response to activist pressure.

This article is for informational purposes only and does not constitute investment advice.