Key Highlights

  • Advance Auto Parts’ $0.25 quarterly Dividend trades ex-dividend October 9, 2026, with payment on October 23 to shareholders of record.
  • Second-quarter GAAP Net Income was $55 million, or $0.90 per diluted share, compared with $15 million, or $0.25.
  • Adjusted diluted EPS (non-GAAP) was $1.03, compared with $0.69, with Tariff refunds adding about $0.31 per share.
  • The company raised 2026 adjusted diluted EPS guidance to $2.60 to $3.30 from $2.40 to $3.10.

Advance Auto Parts, Inc. (NYSE:AAP) declared a quarterly dividend of $0.25 per share, a Yield of 2.43%, payable October 23 to shareholders of record on October 9, 2026. The $0.25 amount equals 27.8% of second-quarter GAAP diluted EPS of $0.90 and 24.3% of adjusted diluted EPS of $1.03 (non-GAAP), based on the company’s reported figures.

Dividend Program and Shareholder Returns

The board declared the $0.25 regular Cash Dividend on August 18, 2026, payable October 23 to stockholders of record on October 9. The shares trade ex-dividend on October 9.

The $0.25 quarterly amount equals $1.00 on an annualized basis, a computed figure. The company reported a net Leverage Ratio of 2.1 times at the end of the second quarter, compared with 2.4 times in the first quarter. It also repurchased and retired about $30 million of principal outstanding Debt during the quarter. Each dividend remains subject to board approval.

About the Company

Advance Auto Parts, Inc. is an automotive aftermarket parts provider serving professional installers and do-it-yourself customers. Shane O’Kelly is president and chief executive officer. For the 12 weeks ended July 18, 2026, the company reported net sales of $2.0 billion and comparable store sales of negative 0.5%. Long-term debt stood at $3,387 million at the end of the quarter, compared with $3,412 million at January 3, 2026.

Second-Quarter Earnings, Margin and Leverage

Advance Auto Parts reported second-quarter net sales of $2,000 million, compared with $2,010 million a year earlier. GAAP net income was $55 million, or $0.90 per diluted share, compared with $15 million, or $0.25. Adjusted diluted EPS (non-GAAP) was $1.03, compared with $0.69.

The adjusted Operating Income margin (non-GAAP) was 5.6%, compared with 3.0% a year earlier, an increase the company described as more than 250 basis points. For the first 28 weeks of 2026, net sales were $4,614 million, compared with $4,593 million, and GAAP net income was $80 million, compared with $39 million.

Tariff Refunds and Full-Year Guidance

The company reported $26 million of tariff refunds related to International Emergency Economic Powers Act tariffs in adjusted Gross Profit during the second quarter. It stated that the refunds contributed about $0.31 to adjusted diluted EPS (non-GAAP).

For 2026, the company reaffirmed net sales of $8,485 million to $8,575 million, comparable store sales growth of 1.00% to 2.00%, an adjusted operating income margin (non-GAAP) of 3.80% to 4.50%, and free Cash Flow of about $100 million. It raised adjusted diluted EPS guidance (non-GAAP) to $2.60 to $3.30 from $2.40 to $3.10, which the release attributed to higher pre-tax interest income.

Cash Flow and Debt Reduction

The 28-week Cash Flow Statement shows $29 million of repayments of long-term debt. Long-term debt fell from $3,412 million at January 3, 2026 to $3,387 million at July 18, 2026, a decline of $25 million. The company stated that the roughly $30 million of principal repurchased and retired in the second quarter contributed to the lower leverage ratio.

For the 28 weeks, net sales were $21 million higher than a year earlier, while GAAP net income was $80 million, compared with $39 million.

Outlook

Advance Auto Parts’ $0.25 quarterly dividend is payable October 23 to shareholders of record on October 9, 2026. The treatment of tariff refunds within adjusted earnings, the $2.60 to $3.30 adjusted diluted EPS guidance range, the 2.1 times net leverage ratio, and the roughly $100 million free cash flow target are the relevant considerations.