| Stock and Stock-Based Incentive Plans |
Stock and Stock-Based Incentive Plans (A)Share Repurchase Program As of August 31, 2026, a total of $2.0 billion of board authorizations for repurchases of our common stock was outstanding, with no expiration date, of which $1.31 billion remained available for repurchase. Common Stock Repurchases | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | August 31 | | August 31 | | 2026 | | 2025 | | 2026 | | 2025 | Number of shares repurchased (in thousands) | — | | | 2,921.0 | | | — | | | 5,873.4 | | | Average cost per share | $ | — | | | $ | 61.63 | | | $ | — | | | $ | 64.66 | | Available for repurchase, as of end of period (in millions) | $ | 1,305.1 | | | $ | 1,557.1 | | | $ | 1,305.1 | | | $ | 1,557.1 | |
(B)Share-Based Compensation Composition of Share-Based Compensation Expense | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | August 31 | | August 31 | | (In thousands) | 2026 | | 2025 | | 2026 | | 2025 | | Cost of sales | $ | 1,955 | | | $ | 1,222 | | | $ | 3,427 | | | $ | 1,869 | | | CarMax Auto Finance income | 1,910 | | | 1,146 | | | 3,289 | | | 2,556 | | | Selling, general and administrative expenses | 29,058 | | | 22,445 | | | 68,761 | | | 68,047 | | | Share-based compensation expense, before income taxes | $ | 32,923 | | | $ | 24,813 | | | $ | 75,477 | | | $ | 72,472 | |
Composition of Share-Based Compensation Expense – By Grant Type | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | August 31 | | August 31 | | (In thousands) | 2026 | | 2025 | | 2026 | | 2025 | | Nonqualified stock options | $ | 3,946 | | | $ | 6,930 | | | $ | 7,777 | | | $ | 26,874 | | | Cash-settled restricted stock units (CRSUs) | 19,697 | | | 11,060 | | | 35,445 | | | 16,927 | | | Stock-settled market stock units (MSUs) | 5,115 | | | 4,338 | | | 17,155 | | | 13,769 | | | Stock-settled restricted stock units (SRSUs) | 1,913 | | | — | | | 7,661 | | | — | | | Other share-based incentives: | | | | | | | | | Stock-settled performance stock units (PSUs) | (263) | | | 281 | | | 4,316 | | | 12,020 | | | | | | | | | | | | | | | | | | | Stock-settled deferred stock units (DSUs) | 1,950 | | | 1,665 | | | 1,950 | | | 1,665 | | | Employee stock purchase plan | 565 | | | 539 | | | 1,173 | | | 1,217 | | | Total other share-based incentives | 2,252 | | | 2,485 | | | $ | 7,439 | | | $ | 14,902 | | | Share-based compensation expense, before income taxes | $ | 32,923 | | | $ | 24,813 | | | $ | 75,477 | | | $ | 72,472 | |
(C)Stock Incentive Plan Information Share/Unit Activity | | | | | | | | | | | | | | | | | | | | | | Six Months Ended August 31, 2026 | | Equity Classified | | Liability Classified | | (Shares/units in thousands) | Options | MSUs | SRSUs | Other | | CRSUs | | Outstanding as of February 28, 2026 | 8,551 | | 632 | | 117 | | 625 | | | 1,586 | | | Granted | 69 | | 565 | | 514 | | 348 | | | 1,615 | | | Exercised or vested and converted | (1) | | (161) | | (49) | | (79) | | | (758) | | | Cancelled | (1,455) | | (42) | | (98) | | (12) | | | (118) | | | Outstanding as of August 31, 2026 | 7,164 | | 994 | | 484 | | 882 | | | 2,325 | | | | | | | | | | Weighted average grant date fair value per share/unit: | | | | | | | | | | | | | | | Granted | $ | 18.24 | | $ | 54.59 | | $ | 38.68 | | $ | 34.43 | | | $ | 38.53 | | | Ending outstanding | $ | 29.25 | | $ | 72.17 | | $ | 38.69 | | $ | 56.65 | | | $ | 47.66 | | | | | | | | | | | | | | | | | As of August 31, 2026 | | | Unrecognized compensation (in millions) | $ | 23.4 | | $ | 28.4 | | $ | 12.5 | | $ | 9.4 | | | |
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