CarMax vs Toyota: Revenue, Profit and Business Model
CarMax reported $25.9B of revenue in FY2026 and $247.3M of net income. Toyota reported ~$339.6B of revenue in FY2026 and ~$25.8B of net income.
Latest financial snapshot
Financial summary
CarMax
CarMax's revenue is large but its margins are thin: in fiscal 2026 it booked $25.88 billion of net sales and operating revenues, $2.81 billion of gross profit (10.8%), $562.7 million of CAF income, and $2.45 billion of SG&A, leaving $247.3 million of net earnings ($1.68 per diluted share, or $2.91 adjusted). That compares with $26.35 billion of revenue and $500.6 million of net earnings in fiscal 2025, and a peak of $29.68 billion of revenue in fiscal 2023. The fourth quarter of fiscal 2026 included a $141.3 million non-cash goodwill impairment, wiping out the goodwill on the balance sheet. CarMax repurchased $631.8 million of stock in fiscal 2026, paused buybacks in Q4, and said in September 2026 it would resume them in Q3 fiscal 2027 after Q2 net earnings of $165.3 million on $7.9 billion of revenue.
Toyota
Toyota's fiscal 2026 showed record revenue alongside sharply lower profit. Sales revenues reached ~$340 billion (¥50.68 trillion) while operating margin narrowed to about 7.4% from 10.0% a year earlier, mostly because of roughly $9.25 billion (¥1.38 trillion) in U.S. tariff costs. North America swung to a much weaker profit, Japan remained the largest profit contributor, and financial services kept growing. For fiscal 2027, Toyota's August 2026 forecast calls for ~$362 billion (¥54.0 trillion) in revenue, ~$22.8 billion (¥3.4 trillion) in operating income and ~$21.8 billion (¥3.25 trillion) in net income, assuming 160 yen per dollar.
Revenue and profit by year
CarMax
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $25.9B | $247.3M | 1.0% | -1.8% | Source |
| FY2025 | $26.4B | $500.6M | 1.9% | -0.7% | Source |
| FY2024 | $26.5B | $479.2M | 1.8% | -10.6% | Source |
| FY2023 | $29.7B | $484.8M | 1.6% | -6.9% | Source |
| FY2022 | $31.9B | $1.2B | 3.6% | +68.3% | Source |
| FY2021 | $19B | $746.9M | 3.9% | -6.7% | Source |
| FY2020 | $20.3B | $888.4M | 4.4% | +11.8% | Source |
| FY2019 | $18.2B | $842.4M | 4.6% | +6.1% | Source |
| FY2018 | $17.1B | $664.1M | 3.9% | +7.8% | Source |
| FY2017 | $15.9B | $627M | 3.9% | — | Source |
Toyota
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$339.6B | ~$25.8B | 7.6% | +5.5% | Source |
| FY2025 | ~$321.8B | ~$31.9B | 9.9% | +6.5% | Source |
| FY2024 | ~$302.1B | ~$33.1B | 11.0% | +21.4% | Source |
| FY2023 | ~$248.9B | ~$16.4B | 6.6% | +18.4% | Source |
| FY2022 | ~$210.2B | ~$19.1B | 9.1% | +15.3% | Source |
| FY2021 | ~$182.3B | ~$15B | 8.3% | -9.1% | Source |
| FY2020 | ~$200.5B | ~$13.9B | 6.9% | -1.0% | Source |
| FY2019 | ~$202.5B | ~$12.6B | 6.2% | +2.9% | Source |
| FY2018 | ~$196.8B | ~$16.7B | 8.5% | +6.5% | Source |
| FY2017 | ~$184.9B | ~$12.3B | 6.6% | -2.8% | Source |
| FY2016 | ~$190.3B | ~$15.5B | 8.1% | — | Source |
Where the revenue comes from
CarMax
- Retail Used Vehicle Sales80.0%
$20.70 billion in fiscal 2026 from 780,684 units; $2,253 gross profit per unit.
- Wholesale Vehicle Sales17.4%
$4.50 billion in fiscal 2026 from 538,203 units sold at CarMax's dealer auctions; $974 gross profit per unit.
- Extended Protection Plans1.7%
$448.7 million of EPP commission revenue in fiscal 2026 from service plans and GAP products.
- Advertising, Subscriptions & Other0.9%
$144.5 million of Edmunds advertising and subscription revenue plus $89.7 million of other revenue, net of third-party finance fees, in fiscal 2026.
- CarMax Auto Finance Income
Reported separately
$562.7 million of CAF income in fiscal 2026 (2.2% of revenue equivalent), reported below gross profit rather than as revenue.
Toyota
- Automotive~89%
Toyota, Lexus, Daihatsu and Hino vehicles, plus parts and service
- Financial services~9%
Retail loans, leases and dealer financing
- All other~2%
Housing-related, telecommunications and other businesses
Business model and strategy
CarMax
How it makes money
CarMax buys used vehicles from consumers (whether or not they buy a car), from dealers, and at auctions, reconditions the ones that meet its retail standard, and sells them at fixed prices online, in stores, or through a mix of both. Vehicles that do not meet the retail standard are sold to licensed dealers in CarMax's online wholesale auctions.
Growth strategy
Keith Barr's 'Shift into GEAR' plan has four pillars: Great Offering (price competitively across demand cycles and grow saleable inventory), Easy Experience (connect digital tools with in-store service to lift conversion), Add Value (grow CAF and EPP profitability), and Run Lean (cut reconditioning, logistics, and SG&A costs).
Competitive advantage
CarMax's advantage is scale combined with vertical integration. It appraises and buys well over a million vehicles a year from consumers and dealers, which feeds both its retail lots and its own wholesale auctions, and it owns the reconditioning, logistics, pricing, and financing steps that pure marketplaces outsource.
Toyota
How it makes money
Toyota makes most of its money building and selling vehicles under the Toyota and Lexus brands (plus Daihatsu and Hino), led by high-volume models such as the RAV4, Corolla, Camry and Hilux. A large financial services arm earns interest and lease income on loans and leases to Toyota buyers and dealers, and parts, service and other value-chain businesses add recurring revenue from the installed base of vehicles.
Growth strategy
Toyota's strategy centers on hybrid leadership, battery EV scaling, software improvement, localized manufacturing, Lexus and truck/SUV profitability, financial services, and disciplined capital allocation.
Competitive advantage
Toyota's advantage is manufacturing discipline, hybrid technology, global supplier relationships, brand trust, reliability, and scale. Those strengths are durable, but they must be paired with faster software and EV execution.
Questions about CarMax vs Toyota
Which company has higher revenue — CarMax, Inc. or Toyota Motor Corporation?
CarMax, Inc. reported $25.9B (FY2026), while Toyota Motor Corporation reported ~$339.6B (FY2026). By last reported revenue, Toyota Motor Corporation is the larger business, with CarMax, Inc. reporting a smaller revenue base.
What is the market cap of CarMax, Inc. vs Toyota Motor Corporation?
CarMax, Inc.'s market capitalisation stands at $9.1B, while Toyota Motor Corporation's is $258.0B. Toyota Motor Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to CarMax, Inc..
Which is more financially efficient — CarMax, Inc. or Toyota Motor Corporation?
CarMax, Inc. generates $931k / employee in revenue per employee, while Toyota Motor Corporation generates $905k / employee. CarMax, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do CarMax, Inc. and Toyota Motor Corporation make money?
CarMax, Inc. and Toyota Motor Corporation generate revenue in fundamentally different ways. CarMax, Inc.: CarMax buys used vehicles from consumers (whether or not they buy a car), from dealers, and at auctions, reconditions the ones that meet its retail standard, and sells them at fixed prices online, in stores, or through a mix of both. Toyota Motor Corporation: Toyota makes most of its money building and selling vehicles under the Toyota and Lexus brands (plus Daihatsu and Hino), led by high-volume models such as the RAV4, Corolla, Camry and Hilux.
Which company is valued higher relative to revenue — CarMax, Inc. or Toyota Motor Corporation?
On a price-to-sales (P/S) basis, CarMax, Inc. trades at 0.4x P/S and Toyota Motor Corporation at 0.8x P/S. Toyota Motor Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to CarMax, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is CarMax, Inc. bigger than Toyota Motor Corporation?
By last reported revenue, Toyota Motor Corporation (~$339.6B (FY2026)) is the larger company compared to CarMax, Inc. ($25.9B (FY2026)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the CarMax vs Toyota overview