CarMax is betting on digital innovation and electric vehicle adoption to drive its next phase of growth.

The nation’s largest used car retailer announced growth in its fiscal Q1 2026. CarMax revenue reached $7.5 billion for the quarter ending May 31, up from $7.1 billion a year ago. Net income climbed to $220.6 million, compared to $155.4 million in the same period last year. Used vehicle unit sales rose 9%, with comparable store sales up 8.1%.

CarMax’s digital tools now support 80% of its retail transactions. Two-thirds of all buyers blend online and in-store steps, and 14% complete their purchases entirely online. CEO Bill Nash said digital continues to be a key differentiator for the company as more car buyers expect a seamless and flexible experience.

“We’re proving that our model can grow both sales and profits, even as the industry shifts around us,” Nash told analysts on the company’s earnings call.

How CarMax is incorporating digital innovation into its business

CarMax’s customer satisfaction scores have reached record levels since launching its digital platform nationwide. That momentum is backed by ongoing investments in artificial intelligence. The company’s virtual assistant, Skye, handled 30% more customer interactions without human involvement compared to a year ago. Productivity at customer support centers rose 24%, and response times for calls and web chats improved significantly.

The company is also accelerating efforts to lead in the used electric vehicle market. It recently launched a comprehensive EV strategy that includes a dedicated CarMax EV Hub, a digital resource to educate buyers on EV ownership, maintenance, and tax credit eligibility. Customers can now use the site to determine whether an EV fits their needs, compare vehicle options, and understand the total cost of ownership.

CarMax partnered with battery analytics company Recurrent to show battery health scores directly on EV listings. Shoppers can click through to view more detailed battery performance reports, including estimates of remaining range and battery degradation. This data, typically unavailable for used EVs, is meant to ease one of the biggest concerns buyers face when considering electric vehicles.

New CarMax website feature

The company also introduced a new feature on its website that highlights vehicles potentially eligible for the federal used EV tax credit of up to $4,000. And through a partnership with Treehouse, CarMax now offers home-charged installation services. Customers who purchase an EV and use Treehouse for installation receive $200 credit. CarMax has also taken investment stakes in both Recurrent and Treehouse.

“These partnerships reflect our long-term commitment to the EV market,” said Terence Rasmussen, CarMax’s vice president of business and corporate development. “We’re not just offering tools — we’re helping customers make better, more informed decisions.”

CarMax profit in Q1 2026

CarMax’s auto finance division reported $142 million in income, and the company took steps to reduce exposure to riskier loans by moving $632 million in subprime balances into a pool that will be sold through a securitization deal. The move allows CarMax to manage credit risk while maintaining its growth in financing across the full credit spectrum.

Retail profit per used vehicle reached an all-time high of $2,407. Wholesale vehicle profits remained steady, even as average prices slipped slightly. CarMax said it bought more than 336,000 vehicles during Q1, a 7% increase from the prior year, including a record volume sourced from dealers through its Max Offer platform.

Spending remained in check as the company continued to leverage cost improvements tied to its digital and logistics infrastructure. Selling, general and administrative expenses rose just 3% year over year. The company also repurchased 3 million shares during the quarter, totaling $200 million in buybacks.

CarMax plans to launch a national marketing campaign later this summer aimed at highlighting its omnichannel buying experience and digital tools to a broader audience.

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