CarMax (NYSE:KMX) delivered a strong fiscal 2027 second quarter, with total sales rising 19% year over year to $7.9 billion. Used unit comparable sales increased 13%, while diluted earnings per share climbed 81% to $1.16.
Higher vehicle volume helped drive the quarter, with additional gains coming from the company’s Extended Protection Plan products.
That performance came as CarMax put new technology to work across several parts of the customer journey.
The company has expanded agentic AI across its inbound customer calls while refining the algorithms used to price vehicles. Work on the digital purchase journey is moving forward as well, supported by leadership changes that bring related technology teams closer together.
Why It Matters: CarMax is linking its technology work to measurable parts of the business, including customer conversion and operating efficiency. AI is already handling a major customer-facing workflow, while pricing technology is helping the company respond more precisely to local demand. The approach gives CarMax a way to evaluate technology through its effect on business performance, not simply the adoption of new tools.
- Agentic AI Reaches a Major Customer-Facing Workflow: CarMax said its AI voice technology now covers 100% of inbound calls to stores and its customer experience center. Customers can resolve inquiries through the technology or use it to reach the appropriate associate. CEO Keith Barr said the company’s AI center of excellence helps CarMax “responsibly use AI” when evaluating use cases.
- Vehicle Pricing Becomes More Data-Driven: CarMax has refined its pricing algorithms by adding more granular local-market information and expanding the set of vehicles used for comparison. The work is ongoing, with Barr saying the company updates its algorithms “every single month.” Management said the changes produced sharper pricing that supported sales during the quarter.
- Digital Improvements Support Customer Conversion: CarMax redesigned its vehicle detail page to make inventory easier to explore while giving shoppers personalized monthly payments. The company has also removed steps from parts of the purchase process. Those changes came during a quarter when web traffic declined slightly, yet sales opportunities and conversion among engaged customers increased.
- CarMax Brings Technology Teams Closer Together: Senior Vice President of Strategy Jeff Campbell is leading a centralized function that includes AI and data science alongside pricing. CarMax also created a chief digital and customer officer position, which Elizabeth Dirgins will fill with responsibility for the customer journey. Barr said the changes are intended to create “a faster, more connected company.”
- CarMax Expects AI to Reshape Vehicle Discovery: Barr said AI could help shoppers understand which vehicles fit their needs, particularly during online research. He noted that used cars differ from standardized consumer products because each vehicle represents an individual SKU, which affects how easily an AI agent could carry a purchase through to completion. For now, CarMax sees AI as a way to “become more efficient and deliver better customer experiences.”
Go Deeper -> CarMax’s Earnings Report – MarketBeat
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