Key Highlights

  • Consensus EPS of 0.93 compares with second-quarter diluted EPS of 0.86, against 0.78 a year earlier.
  • Consensus revenue of USD 5.02 billion compares with second-quarter sales of USD 4,892,013 thousand, against USD 4,525,058 thousand.
  • Management raised 2026 diluted EPS guidance to 3.20 to 3.30 from a previous range of 3.15 to 3.25.
  • Management guided 2026 revenue of USD 18.9 billion to USD 19.2 billion and comparable store sales of 4% to 6%.

O'Reilly Automotive (NASDAQ:ORLY) reports third-quarter results on Wednesday, Oct. 28, after the market closes. Consensus stands at EPS of 0.93 on revenue of USD 5.02 billion, and the company has a market capitalization of USD 73.66 billion.

O'Reilly Automotive sells automotive parts, tools and accessories to professional and do-it-yourself customers through its stores. Second-quarter sales were USD 4,892,013 thousand against USD 4,525,058 thousand, and net income was USD 715,064 thousand against USD 668,595 thousand.

Estimates Against Second-Quarter Results

The EPS estimate of 0.93 is above the second-quarter diluted EPS of 0.86, which compared with 0.78 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 5.02 billion is above the USD 4,892,013 thousand reported, which compared with USD 4,525,058 thousand.

Management gave no third-quarter range, so the comparison runs to the last reported quarter and the full-year guidance. Gross profit was USD 2,516,740 thousand against USD 2,326,538 thousand, and operating income was USD 985,746 thousand against USD 914,470 thousand.

What Management Guided and What It Left Open

Management raised 2026 revenue guidance to USD 18.9 billion to USD 19.2 billion from USD 18.7 billion to USD 19.0 billion and comparable store sales guidance to 4% to 6% from 3% to 5%. It raised diluted EPS guidance to 3.20 to 3.30 from 3.15 to 3.25.

Management guided gross margin of 51.5% to 52%, operating profit margin of 19.3% to 19.8% and SG&A per store growth of 3.5% to 4%. It left open same-SKU inflation, saying it expects the benefit to moderate in the third and fourth quarters, with inflation of 1% to 2% guided for the back half.

Comparable Sales, Margin and Store Detail

Comparable store sales grew 6%, with professional comparable sales up 10% and DIY up low single digits. Same-SKU inflation was 5.5%. Gross margin was 51.4% against guidance of 51.5% to 52% for the year, and SG&A per store grew 4.8%.

The company opened 110 stores year to date against a full-year target of 225 to 235 and guided capital expenditures of USD 1.3 billion to USD 1.4 billion. Inventory per store was USD 892,000, up 7%, and the accounts payable to inventory ratio was 124%.

Income Statement Lines, Buybacks and Leverage

SG&A expenses were USD 1,530,994 thousand against USD 1,412,068 thousand, and cost of goods sold was USD 2,375,273 thousand against USD 2,198,520 thousand. Income before income taxes was USD 924,075 thousand against USD 861,455 thousand.

The company repurchased 17 million shares at an average price of 90.40 in the quarter, a USD 1.5 billion investment, and 34 million shares for USD 3.1 billion year to date. Adjusted debt to EBITDAR was 2.17 times against 2.03 times at the end of 2025. Cash and cash equivalents were USD 262,181 thousand. The estimates table lists a market capitalization of USD 73.66 billion.

Comparisons to Make in the Report

Reported EPS against 0.93 and revenue against USD 5.02 billion are the headline comparisons. Other markers are comparable store sales, gross margin and the raised 2026 guidance.