F1Q27 Wrap: Signs of Progress, Though Early to Once Again Extrapolate a 1Q Beat; Early 2Q Signals Key to Watch For Sustained Recovery; Remain UW, $38 PT

Research evidence excerpt

F1Q27 Wrap: Signs of Progress, Though Early to Once Again Extrapolate a 1Q Beat; Early 2Q Signals Key to Watch For Sustained Recovery; Remain UW, $38 PT

J P M O R G A N North America Equity Research

18 June 2026

CarMax

F1Q27 Wrap: Signs of Progress, Though Early to Once Underweight

Again Extrapolate a 1Q Beat; Early 2Q Signals Key to KMX, KMX US

Watch For Sustained Recovery; Remain UW, $38 PT Price (17 Jun 26):$47.43

▲Price Target (Dec-26):$38.00

Prior (Dec-26):$37.00

Autos & Auto Parts

Rajat Gupta AC

(1-212) 622-6382

rajat.gupta@jpmorgan.com

Jash PatwaKMX making progress, though too early to extrapolate trends from seasonally

(1-212) 622-5472

strong F1Q; Remain UW, $38 PT. F1Q27 results were the 6th consecutive F1Q jash.patwa@jpmchase.com

beat vs. consensus, more than any other quarter since the pandemic, with units and/

Yash Beswala

or retail GPU (inc. service) visible drivers of upside. Clearly this year’s F1Q had (1-212) 622-0028

a unique backdrop, with a new CEO at the helm and several strategic initiatives yash.beswala@jpmchase.com

underway (pricing, CAF penetration pickup, recon/logistics efficiencies, SG&A J.P. Morgan Securities LLC

re-alignment, etc), though we are hesitant to run-rate trends from the strongest tax

Key Changes (FYE Feb)

refund quarter in history, where spending was somewhat extended (as seen in

Prev Cur Δ

industry retail pricing which only accelerated in May) due to initial consumer angst Adj. EPS - 27E ($) 2.45 2.65 7.9%

in March/April due to geopolitical uncertainty and higher gas prices. Investors

have been caught off-guard on several occasions by a positive tone during F1Q Quarterly Forecasts (FYE Feb)

earnings calls only to see revisions ultimately disappoint - consensus FY2 Adj. EPS ($)