O’Reilly Auto Parts 8-K
PositiveEarningsGuidance raised
Professional and DIY share gains underpin raised FY2026 comp-sales and margin guidance; a $39M tariff-refund benefit lifts EPS.
Filed 2026-10-28 16:32 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with raised FY2026 guidance. O’Reilly reported record revenue and earnings, driven by share gains in both its professional and DIY businesses; a $39M benefit from tariff refunds also contributed to diluted EPS growth. The company raised its full-year comparable-store sales, gross-margin and operating-margin guidance.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $5.12B, +9% Y/Y | $14.6B, +9% Y/Y |
| Gross margin | 52.4%, vs 51.9% | 51.8%, vs 51.5% |
| Operating income | $1.10B, +13% Y/Y | $2.93B, +11% Y/Y |
| Net income | $786M, +8% Y/Y | $2.10B, +9% Y/Y |
| Diluted EPS | $0.97, +14% Y/Y | $2.54, +13% Y/Y |
| Operating cash flow | $559M, -9% Y/Y | $2.60B, +22% Y/Y |
| Free cash flow (non-GAAP) | $252M, -15% Y/Y | $1.73B, +44% Y/Y |
| Comparable store sales | 7.2%, vs 5.6% | 7.1%, vs 4.5% |
- Professional-business sales grew at a double-digit rate and DIY sales at a mid-single-digit rate. Comparable store sales include online orders for eligible U.S. stores open at least one year, and exclude specialty machinery, independent-parts-store and Team Member sales.
- Q3 repurchases: 11.8M shares at an average $87.34 per share, for $1.03B. For 9M, O’Reilly repurchased 38.5M shares at an average $89.99, for $3.47B; shares outstanding fell to 804.6M at 9/30/2026 from 846.8M a year earlier. After quarter-end, it repurchased another 2.3M shares for $204M; $727M remained under the authorization.
- O’Reilly opened 173 net new stores in 9M and operated 6,758 stores at 9/30/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Net new store openings | FY2026 | 225 to 235 | — | — |
| Comparable store sales | FY2026 | 5.5% to 6.5% | — | Raised |
| Total revenue | FY2026 | $19.0B to $19.3B | — | — |
| Gross profit as a percentage of sales | FY2026 | 51.6% to 52.1% | — | Raised |
| Operating income as a percentage of sales | FY2026 | 19.5% to 20.0% | — | Raised |
| Effective income tax rate | FY2026 | 22.7% | — | — |
| Diluted EPS | FY2026 | $3.25 to $3.35 | — | — |
| Net cash provided by operating activities | FY2026 | $3.21B to $3.62B | — | — |
| Capital expenditures | FY2026 | $1.3B to $1.4B | — | — |
| Free cash flow (non-GAAP) | FY2026 | $1.9B to $2.2B | — | — |
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Net new store openings | FY2026 | 225–235 | 225 to 235 | reaffirmed |
| Comparable store sales | FY2026 | 4.0%–6.0% | 5.5% to 6.5% | raised |
| Total revenue | FY2026 | $18.9B–$19.2B | $19.0B to $19.3B | raised |
| Gross profit as a percentage of sales | FY2026 | 51.5%–52.0% | 51.6% to 52.1% | raised |
| Operating income as a percentage of sales | FY2026 | 19.3%–19.8% | 19.5% to 20.0% | raised |
| Effective income tax rate | FY2026 | 22.5% | 22.7% | raised |
| Diluted EPS | FY2026 | $3.20–$3.30 | $3.25 to $3.35 | raised |
| Net cash provided by operating activities | FY2026 | $3.11B–$3.52B | $3.21B to $3.62B | raised |
| Capital expenditures | FY2026 | $1.3B–$1.4B | $1.3B to $1.4B | reaffirmed |
| Free cash flow (non-GAAP) | FY2026 | $1.8B–$2.1B | $1.9B to $2.2B | raised |
Investor Takeaways
- Monitor FY2026 comparable-store sales and margins against the company’s outlook; delivery would support its share-gain and Q4 margin outlook, while shortfalls would challenge it.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-30 14:50:54Z