O'reilly Automotive, Inc. Reports Third Quarter 2026 Results

(MENAFN- GlobeNewsWire - Nasdaq)

• Third quarter comparable store sales growth of 7.2%
• 14% increase in third quarter diluted earnings per share to $0.97
• $2.6 billion net cash provided by operating activities year-to-date
  

SPRINGFIELD, Mo., Oct. 28, 2026 (GLOBE NEWSWIRE) -- O'Reilly Automotive, Inc. (the“Company” or“O'Reilly”) ( Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its third quarter ended September 30, 2026.

3 ^{r d} Quarter Financial Results

Brad Beckham, O'Reilly's CEO, commented,“I would like to thank our Team Members for their unwavering commitment to providing industry-leading service to each of our customers. Team O'Reilly's dedication was evident in our strong third quarter comparable store sales increase of 7.2%. This robust growth came on top of strong sales in the third quarter last year, resulting in a two-year stack of 12.8%, and was driven by share gains on both sides of our business, with double-digit growth in our professional business and mid-single digit growth in DIY. Our impressive top-line growth, coupled with a $39 million benefit from tariff refunds received during the third quarter, drove a 14% increase in our third quarter diluted earnings per share. We are extremely pleased with the continued ability of our Team to deliver industry-leading results through their hard work and unrelenting focus on our customers.”

Sales for the third quarter ended September 30, 2026, increased $416 million, or 9%, to $5.12 billion from $4.71 billion for the same period one year ago. Gross profit for the third quarter increased 10% to $2.68 billion (or 52.4% of sales) from $2.44 billion (or 51.9% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the third quarter increased 8% to $1.58 billion (or 30.9% of sales) from $1.46 billion (or 31.1% of sales) for the same period one year ago. Operating income for the third quarter increased 13% to $1.10 billion (or 21.4% of sales) from $976 million (or 20.7% of sales) for the same period one year ago.

Net income for the third quarter ended September 30, 2026, increased $60 million, or 8%, to $786 million (or 15.3% of sales) from $726 million (or 15.4% of sales) for the same period one year ago. Diluted earnings per common share for the third quarter increased 14% to $0.97 on 812 million shares versus $0.85 on 853 million shares for the same period one year ago.

Year-to-Date Financial Results

Mr. Beckham concluded,“As a result of our strong year-to-date performance and expectations for the remainder of 2026, we are raising our full-year 2026 comparable store sales guidance to a range of 5.5% to 6.5%. We are also raising our full-year 2026 gross margin guidance to a range of 51.6% to 52.1% and our operating profit guidance to a range of 19.5% to 20.0%. These updates incorporate our strong third quarter performance, including the benefit from tariff refunds, and our margin expectations for the fourth quarter. Year-to-date, we have opened 173 net, new stores across North America and are on track to reach our goal of 225 to 235 net, new store openings in 2026. We remain very pleased with our new store performance and confident in the strength of the fundamental demand drivers in our business.”

Sales for the first nine months of 2026 increased $1.21 billion, or 9%, to $14.57 billion from $13.37 billion for the same period one year ago. Gross profit for the first nine months of 2026 increased 10% to $7.55 billion (or 51.8% of sales) from $6.89 billion (or 51.5% of sales) for the same period one year ago. SG&A expenses for the first nine months of 2026 increased 9% to $4.62 billion (or 31.7% of sales) from $4.26 billion (or 31.8% of sales) for the same period one year ago. Operating income for the first nine months of 2026 increased 11% to $2.93 billion (or 20.1% of sales) from $2.63 billion (or 19.7% of sales) for the same period one year ago.

Net income for the first nine months of 2026 increased $172 million, or 9%, to $2.10 billion (or 14.4% of sales) from $1.93 billion (or 14.5% of sales) for the same period one year ago. Diluted earnings per common share for the first nine months of 2026 increased 13% to $2.54 on 828 million shares versus $2.25 on 858 million shares for the same period one year ago.

3 ^{r d} Quarter Comparable Store Sales Results

Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 7.2% for the third quarter ended September 30, 2026, on top of 5.6% for the same period one year ago. Comparable store sales increased 7.1% for the nine months ended September 30, 2026, on top of 4.5% for the same period one year ago.

Share Repurchase Program

During the third quarter ended September 30, 2026, the Company repurchased 11.8 million shares of its common stock, at an average price per share of $87.34, for a total investment of $1.03 billion. During the first nine months of 2026, the Company repurchased 38.5 million shares of its common stock, at an average price per share of $89.99, for a total investment of $3.47 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $34.7 million for the nine months ended September 30, 2026. Subsequent to the end of the third quarter and through the date of this release, the Company repurchased an additional 2.3 million shares of its common stock, at an average price per share of $87.11, for a total investment of $204 million. The Company has repurchased a total of 1.50 billion shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $20.63, for a total aggregate investment of $31.02 billion. As of the date of this release, the Company had approximately $727 million remaining under its current share repurchase authorization.

Updated Full-Year 2026 Guidance

The table below outlines the Company's updated guidance for selected full-year 2026 financial data:

		For the Year Ending
		December 31, 2026
Net, new store openings		225 to 235
Comparable store sales		5.5% to 6.5%
Total revenue		$19.0 billion to $19.3 billion
Gross profit as a percentage of sales		51.6% to 52.1%
Operating income as a percentage of sales		19.5% to 20.0%
Effective income tax rate		22.7	%
Diluted earnings per share (1)		$3.25 to $3.35
Net cash provided by operating activities		$3.2 billion to $3.6 billion
Capital expenditures		$1.3 billion to $1.4 billion
Free cash flow (2)		$1.9 billion to $2.2 billion

(1)	Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.
(2)	Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:

			For the Year Ending
	(in millions)		December 31, 2026
	Net cash provided by operating activities		$	3,210		to		$	3,620
	Less:	Capital expenditures			1,300		to			1,400
		Excess tax benefit from share-based compensation payments			10		to			20
	Free cash flow		$	1,900		to		$	2,200

Non-GAAP Information

This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company's core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.

Earnings Conference Call Information

The Company will host a conference call on Thursday, October 29, 2026, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company's website at by clicking on“Investor Relations.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 479629. A replay of the conference call will be available on the Company's website through Thursday, October 28, 2027.

About O'Reilly Automotive, Inc.

O'Reilly Automotive, Inc. was founded in 1957 by the O'Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company's website at for additional information about O'Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of September 30, 2026, the Company operated 6,758 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.

Forward-Looking Statements

The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as“estimate,”“may,”“could,”“will,”“believe,”“expect,”“would,”“consider,”“should,”“anticipate,”“project,”“plan,”“intend,”“guidance,”“target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; trade disputes and changes in trade policies, including the imposition of new or increased tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the“Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2025, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company's financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

For further information contact:	Investor Relations Contacts
	Leslie Skorick (417) 874-7142
	Eric Bird (417) 868-4259
	Media Contact
	Sonya Cox (417) 427-8071

O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
		September 30, 2026		September 30, 2025		December 31, 2025
		(Unaudited)		(Unaudited)		(Note)
Assets
Current assets:
Cash and cash equivalents		$	194,445			$	204,513			$	193,793
Accounts receivable, net			462,093				422,849				389,793
Amounts receivable from suppliers			200,905				178,155				159,900
Inventory			6,165,052				5,610,118				5,731,385
Other current assets			200,805				181,340				269,406
Total current assets			7,223,300				6,596,975				6,744,277
Property and equipment, at cost			11,035,437				9,982,785				10,222,249
Less: accumulated depreciation and amortization			4,303,799				3,849,021				3,964,824
Net property and equipment			6,731,638				6,133,764				6,257,425
Operating lease, right-of-use assets			2,493,533				2,404,612				2,391,150
Goodwill			952,900				945,587				948,208
Other assets, net			200,508				198,689				197,193
Total assets		$	17,601,879			$	16,279,627			$	16,538,253
Liabilities and shareholders' deficit
Current liabilities:
Accounts payable		$	7,507,497			$	7,060,609			$	7,103,684
Self-insurance reserves			198,760				180,138				297,304
Accrued payroll			133,882				154,288				119,603
Accrued benefits and withholdings			293,232				256,835				240,072
Income taxes payable			8,162				10,696				13,957
Current portion of operating lease liabilities			458,026				436,672				439,907
Other current liabilities			744,009				610,521				561,294
Total current liabilities			9,343,568				8,709,759				8,775,821
Long-term debt			7,711,498				5,915,530				6,016,904
Operating lease liabilities, less current portion			2,126,908				2,049,454				2,034,688
Deferred income taxes			244,095				240,728				211,210
Other liabilities			268,418				258,832				262,982
Shareholders' equity (deficit):
Common stock, $0.01 par value:
Authorized shares – 1,250,000,000
Issued and outstanding shares –
804,607,512 as of September 30, 2026,
846,832,348 as of September 30, 2025, and
841,909,238 as of December 31, 2025			8,046				8,468				8,419
Additional paid-in capital			1,537,400				1,519,584				1,530,292
Retained deficit			(3,653,266	)			(2,438,352	)			(2,328,817	)
Accumulated other comprehensive income			15,212				15,624				26,754
Total shareholders' deficit			(2,092,608	)			(894,676	)			(763,352	)
Total liabilities and shareholders' deficit		$	17,601,879			$	16,279,627			$	16,538,253

Note: The balance sheet at December 31, 2025, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data)
		For the Three Months Ended		For the Nine Months Ended
		September 30,		September 30,
		2026			2025			2026			2025
Sales		$	5,121,290			$	4,705,696			$	14,573,842			$	13,367,678
Cost of goods sold, including warehouse and distribution expenses			2,438,249				2,265,750				7,026,850				6,479,709
Gross profit			2,683,041				2,439,946				7,546,992				6,887,969
Selling, general and administrative expenses			1,584,750				1,463,879				4,621,347				4,255,966
Operating income			1,098,291				976,067				2,925,645				2,632,003
Other income (expense):
Interest expense			(81,850	)			(59,566	)			(214,466	)			(174,467	)
Interest income			1,987				1,780				5,324				5,329
Other, net			3,706				5,369				9,795				6,591
Total other expense			(76,157	)			(52,417	)			(199,347	)			(162,547	)
Income before income taxes			1,022,134				923,650				2,726,298				2,469,456
Provision for income taxes			236,513				197,754				621,432				536,480
Net income		$	785,621			$	725,896			$	2,104,866			$	1,932,976
Earnings per share-basic:
Earnings per share		$	0.97			$	0.86			$	2.55			$	2.26
Weighted-average common shares outstanding – basic			808,851				848,292				824,100				853,909
Earnings per share-assuming dilution:
Earnings per share		$	0.97			$	0.85			$	2.54			$	2.25
Weighted-average common shares outstanding – assuming dilution			812,201				852,704				827,754				858,452

O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In thousands)
		For the Nine Months Ended
		September 30,
		2026			2025
Operating activities:
Net income		$	2,104,866			$	1,932,976
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and intangibles			413,189				375,825
Amortization of debt discount and issuance costs			6,086				5,502
Deferred income taxes			33,460				(7,873	)
Share-based compensation programs			26,289				27,108
Other			(978	)			7,381
Changes in operating assets and liabilities:
Accounts receivable			(82,911	)			(66,898	)
Inventory			(437,579	)			(486,368	)
Accounts payable			409,638				532,599
Income taxes payable			(3,077	)			(1,882	)
Other			129,172				(189,869	)
Net cash provided by operating activities			2,598,155				2,128,501
Investing activities:
Purchases of property and equipment			(860,273	)			(899,783	)
Proceeds from sale of property and equipment			6,677				16,882
Return of tax credit equity investments			3,294				-
Other, including acquisitions, net of cash acquired			(2,718	)			(13,664	)
Net cash used in investing activities			(853,020	)			(896,565	)
Financing activities:
Net (payments) proceeds of commercial paper			(238,843	)			389,796
Proceeds from the issuance of long-term debt			2,446,149				-
Principal payments on long-term debt			(500,000	)			-
Payment of debt issuance costs			(17,287	)			(3,829	)
Payment of excise tax on share repurchases			(18,718	)			(17,012	)
Repurchases of common stock			(3,467,904	)			(1,596,650	)
Net proceeds from issuance of common stock			52,333				68,280
Other			(270	)			(433	)
Net cash used in financing activities			(1,744,540	)			(1,159,848	)
Effect of exchange rate changes on cash			57				2,180
Net increase in cash and cash equivalents			652				74,268
Cash and cash equivalents at beginning of the period			193,793				130,245
Cash and cash equivalents at end of the period		$	194,445			$	204,513
Supplemental disclosures of cash flow information:
Income taxes paid		$	618,464			$	876,513
Interest paid, net of capitalized interest			180,675				152,090

O'REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES SELECTED FINANCIAL INFORMATION (Unaudited)
		For the Twelve Months Ended
		September 30,
Adjusted Debt to EBITDAR:		2026		2025
(In thousands, except adjusted debt to EBITDAR ratio)
GAAP debt		$	7,711,498		$	5,915,530
Add:	Letters of credit			197,596			156,259
	Unamortized discount and debt issuance costs			38,502			24,470
	Six-times rent expense			3,077,952			2,894,580
Adjusted debt		$	11,025,548		$	8,990,839
GAAP net income		$	2,710,099		$	2,484,106
Add:	Interest expense			275,063			229,870
	Provision for income taxes			786,914			670,547
	Depreciation and amortization			548,594			498,393
	Share-based compensation expense			34,296			34,439
	Rent expense (i)			512,992			482,430
EBITDAR		$	4,867,958		$	4,399,785
Adjusted debt to EBITDAR			2.26			2.04

(i)	The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended September 30, 2026 and 2025 (in thousands):

			For the Twelve Months Ended
			September 30,
			2026		2025
	Total lease cost, per ASC 842		$	614,988		$	581,898
	Less:	Variable non-contract operating lease components, related to property taxes and insurance			101,996			99,468
	Rent expense		$	512,992		$	482,430

		September 30,
		2026		2025
Selected Balance Sheet Ratios:
Inventory turnover (1)			1.6			1.6
Average inventory per store (in thousands) (2)		$	912		$	858
Accounts payable to inventory (3)			121.8 %			125.9%

			For the Three Months Ended		For the Nine Months Ended
			September 30,		September 30,
			2026		2025		2026		2025
Reconciliation of Free Cash Flow (in thousands):
Net cash provided by operating activities		$	558,743			$	616,535		$	2,598,155			$	2,128,501
Less:	Capital expenditures			308,223				312,098			860,273				899,783
	Excess tax benefit from share-based compensation payments			1,961				7,441			11,507				27,714
	Return of tax credit equity investments			(3,294	)			-			(3,294	)			-
Free cash flow		$	251,853			$	296,996		$	1,729,669			$	1,201,004

		For the Three Months Ended		For the Nine Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
Revenue Disaggregation (in thousands):
Sales to do-it-yourself customers	$	2,448,394		$	2,304,804		$	6,975,384		$	6,585,229
Sales to professional service provider customers			2,600,841			2,307,782			7,361,207			6,502,215
Other sales and sales adjustments			72,055			93,110			237,251			280,234
Total sales		$	5,121,290		$	4,705,696		$	14,573,842		$	13,367,678

		For the Three Months Ended		For the Nine Months Ended		For the Twelve Months Ended
		September 30,		September 30,		September 30,
		2026		2025		2026		2025			2026		2025
Store Count:
Beginning domestic store count		6,541		6,360		6,447		6,265			6,406		6,187
New stores opened		54		46		148		141			189		219
Stores closed		-		-		-		-			-		-
Ending domestic store count		6,595		6,406		6,595		6,406			6,595		6,406
Beginning Mexico store count		126		98		112		87			107		78
New stores opened		8		9		22		20			27		29
Stores closed		-		-		-		-			-		-
Ending Mexico store count		134		107		134		107			134		107
Beginning Canada store count		28		25		26		26			25		26
New stores opened		1		-		3		-			4		-
Stores closed		-		-		-		(1	)		-		(1	)
Ending Canada store count		29		25		29		25			29		25
Total ending store count		6,758		6,538		6,758		6,538			6,758		6,538

		For the Three Months Ended		For the Twelve Months Ended
		September 30,		September 30,
		2026		2025		2026		2025
Store and Team Member Information:
Total employment			96,820			93,269
Square footage (in thousands) (4)			53,382			50,980
Sales per weighted-average square foot (4)(5)		$	94.65		$	90.80		$	355.84		$	344.65
Sales per weighted-average store (in thousands) (4)(6)		$	764		$	720		$	2,856		$	2,701

(1)	Calculated as cost of goods sold for the last 12 months divided by average inventory.
(2)	Calculated as inventory divided by store count at the end of the reported period.
(3)	Calculated as accounts payable divided by inventory.
(4)	Represents O'Reilly's U.S. and Puerto Rico operations only.
(5)	Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.
(6)	Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.

This press release was published by a CLEAR® Verified individual.

MENAFN28102026004107003653ID1111881417