O'Reilly Automotive, Inc.

(NASDAQ Global Select)
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Very Bullish +85

O’Reilly Automotive, Inc. Reports Third Quarter 2026 Results

Earnings report Guidance raised Share buyback AI-generated analysis

📈 O'Reilly reported record third-quarter revenue of $5.12 billion, representing a 9% year-over-year increase.

🛒 Third quarter comparable store sales grew 7.2%, driven by share gains in both professional and DIY segments.

💰 Diluted earnings per share increased 14% to $0.97, aided by a $39 million tariff refund benefit.

📉 Gross profit expanded 10% to $2.68 billion, maintaining a healthy margin of 52.4% of sales.

🏗️ Operating income rose 13% to $1.10 billion, reflecting strong operational efficiency and volume growth.

📢 CEO Brad Beckham raised full-year comparable store sales guidance to a range of 5.5% to 6.5%.

💵 Gross margin guidance was upgraded to 51.6% to 52.1% for the full year 2026.

🔁 The company repurchased 11.8 million shares in Q3, investing $1.03 billion in share buybacks.

🚀 Full-year revenue guidance was raised to $19.0 billion to $19.3 billion based on strong performance.

🏬 O'Reilly is on track to open 225 to 235 net new stores across North America in 2026.

Bullish Signals
  • O'Reilly reported record third-quarter revenue of $5.12 billion, a 9% increase year-over-year driven by strong comparable store sales growth.
  • Diluted earnings per share surged 14% to $0.97, supported by double-digit growth in the professional business segment and mid-single digit growth in DIY.
  • The company raised its full-year 2026 comparable store sales guidance to a range of 5.5% to 6.5%, reflecting confidence in continued demand.
  • Gross profit margins expanded to 52.4% in the third quarter, leading management to raise full-year gross margin guidance to 51.6% to 52.1%.
  • Operating income increased 13% to $1.10 billion, demonstrating strong operational leverage and cost control amidst revenue growth.
  • The company executed a significant share repurchase program in Q3, investing $1.03 billion to buy back 11.8 million shares of common stock.
  • Management raised full-year revenue guidance to $19.0 billion to $19.3 billion and operating profit margin guidance to 19.5% to 20.0%.
Full Analysis
O'Reilly Automotive reported record third-quarter results for the period ended September 30, 2026, driven by robust comparable store sales growth and strong operational performance. Third quarter comparable store sales increased 7.2%, contributing to a total revenue increase of $416 million, or 9%, year-over-year to reach $5.12 billion. Gross profit rose 10% to $2.68 billion, representing 52.4% of sales, while operating income climbed 13% to $1.10 billion. Diluted earnings per share grew 14% to $0.97, fueled by strong top-line growth and a $39 million benefit from tariff refunds received during the quarter. The company also executed significant share repurchases in the third quarter, buying back 11.8 million shares for approximately $1.03 billion, continuing its aggressive capital return strategy to shareholders. Based on these strong results, O'Reilly raised its full-year 2026 guidance across key metrics. The company now expects comparable store sales growth between 5.5% and 6.5%, gross margins of 51.6% to 52.1%, and operating profit margins of 19.5% to 20.0%. Management also increased its full-year revenue guidance to a range of $19.0 billion to $19.3 billion.