Key Highlights

  • Third-quarter sales rose 9% to USD 5.12 billion, supported by comparable store sales growth of 7.2%.
  • Diluted EPS climbed 14% to USD 0.97, helped by a USD 39 million tariff refund benefit.
  • Gross margin widened to 52.4% of sales from 51.9% a year ago, while operating margin reached 21.4%.
  • Full-year 2026 comparable store sales guidance was raised to a range of 5.5% to 6.5%.

O'Reilly Automotive, Inc. (NASDAQ:ORLY) reported third-quarter 2026 diluted earnings per share of USD 0.97, above a consensus estimate of USD 0.93 and up 14% from USD 0.85 a year earlier. Sales increased USD 416 million, or 9%, to USD 5.12 billion, above a consensus estimate of USD 5.02 billion.

Net income rose 8% to USD 786 million, while net income as a share of sales edged down to 15.3% from 15.4%. The per-share gain also reflects a lower diluted share count of 812 million, compared with 853 million in the prior-year quarter. CEO Brad Beckham attributed the quarter to share gains in both the professional and do-it-yourself businesses, with professional growing at a double-digit rate and DIY at a mid-single-digit rate.

Margins, Comparable Sales and Buybacks

Gross profit grew 10% to USD 2.68 billion, lifting gross margin to 52.4% of sales. Selling, general and administrative expenses rose 8% to USD 1.58 billion, or 30.9% of sales versus 31.1% a year ago. Operating income increased 13% to USD 1.10 billion, an operating margin of 21.4% against 20.7%. The company said a USD 39 million benefit from tariff refunds received during the quarter contributed to the earnings gain.

Comparable store sales rose 7.2% on top of 5.6% a year earlier, a two-year stack of 12.8%. Repurchases totaled 11.8 million shares at an average price of USD 87.34, an investment of USD 1.03 billion in the quarter. Through the nine months, the company bought back 38.5 million shares for USD 3.47 billion, and another 2.3 million shares for USD 204 million after quarter end.

Updated 2026 Guidance Ranges

The company raised several full-year targets. Comparable store sales are now guided to 5.5% to 6.5%, gross margin to 51.6% to 52.1%, and operating margin to 19.5% to 20.0%. Total revenue is guided to USD 19.0 billion to USD 19.3 billion and diluted EPS to USD 3.25 to USD 3.35. Operating cash flow is guided to USD 3.2 billion to USD 3.6 billion, with capital expenditures of USD 1.3 billion to USD 1.4 billion and free cash flow of USD 1.9 billion to USD 2.2 billion.

Management said the margin updates incorporate the tariff refund benefit. Year to date, the company has opened 173 net new stores and targets 225 to 235 for the year. It operated 6,758 stores across 48 U.S. states, Puerto Rico, Mexico and Canada at September 30.

Data Points Behind the Next Report

Several figures frame the next report. Long-term debt reached USD 7.71 billion, up from USD 5.92 billion a year earlier, while inventory stands at USD 6.17 billion. Shareholders' deficit widened to USD 2.09 billion from USD 894.7 million, reflecting buybacks. Roughly USD 727 million remained under the repurchase authorization as of the release date. The fourth quarter also carries the 52 net new store gap to the low end of the opening target, and a full-year EPS range that leaves a defined span for the final quarter to fill.