CarMax beats earnings estimates but warns vehicle margins will stay low amid pricing strategy.

CarMax reported first-quarter fiscal 2027 earnings of $1.31 per share, surpassing analyst estimates of 94 cents, with revenue rising 6.2% to $8.01 billion. However, gross profit declined 4.4%, and gross profit per retail used vehicle dropped by $230 due to pricing actions aimed at boosting sales. The company expects lower vehicle margins to persist throughout the year as it focuses on sales growth and operational efficiencies. Despite strong sales and a new growth strategy, CarMax's shares fell 5.64% in premarket trading, reflecting investor concern over margin pressures.