16% increase in first quarter diluted earnings per share to $0.72
$1 billion net cash provided by operating activities year-to-date
SPRINGFIELD, Mo., April 29, 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 first quarter ended March 31, 2026.
1st Quarter Financial Results
Brad Beckham, O'Reilly's CEO, commented, "We are pleased to report a strong start to 2026, highlighted by an 8.1% increase in comparable store sales and a 16% increase in our first quarter diluted earnings per share. Team O'Reilly delivered comparable store sales results exceeding our expectations in both professional and DIY, with double-digit growth in our professional business and mid-single digit growth in DIY. Our ability to drive productivity in our business and translate robust sales growth into a 14% increase in operating profit is the direct result of our Team's focus on prudent expense management. I would like to thank all of our Team Members for their incredible hard work in the first quarter and their relentless focus on providing unsurpassed service to our customers each and every day. We look forward to the opportunities we have to grow our market share in 2026 and are encouraged by the stable demand backdrop in our industry."
Sales for the first quarter of 2026 increased $424 million, or 10%, to $4.56 billion from $4.14 billion for the same period one year ago. Gross profit for the first quarter of 2026 increased 11% to $2.35 billion (or 51.5% of sales) from $2.12 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses for the first quarter of 2026 increased 9% to $1.51 billion (or 33.0% of sales) from $1.38 billion (or 33.4% of sales) for the same period one year ago. Operating income for the first quarter of 2026 increased 14% to $842 million (or 18.5% of sales) from $741 million (or 17.9% of sales) for the same period one year ago.
Net income for the first quarter of 2026 increased $66 million, or 12%, to $604 million (or 13.2% of sales) from $538 million (or 13.0% of sales) for the same period one year ago. Diluted earnings per common share for the first quarter of 2026 increased 16% to $0.72 on 843 million shares versus $0.62 on 864 million shares for the same period one year ago.
1st 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 8.1% for the first quarter ended March 31, 2026, on top of 3.6% for the same period one year ago.
Share Repurchase Program
During the first quarter ended March 31, 2026, the Company repurchased 10.0 million shares of its common stock, at an average price per share of $92.45, for a total investment of $923 million. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $9.2 million for the three months ended March 31, 2026. Subsequent to the end of the first quarter and through the date of this release, the Company repurchased an additional 3.6 million shares of its common stock, at an average price per share of $92.83, for a total investment of $338 million. The Company has repurchased a total of 1.48 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 $19.38, for a total aggregate investment of $28.61 billion. As of the date of this release, the Company had approximately $1.14 billion 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
3.0% to 5.0%
Total revenue
$18.7 billion to $19.0 billion
Gross profit as a percentage of sales
51.5% to 52.0%
Operating income as a percentage of sales
19.3% to 19.8%
Effective income tax rate
22.6%
Diluted earnings per share(1)
$3.15 to $3.25
Net cash provided by operating activities
$3.1 billion to $3.5 billion
Capital expenditures
$1.3 billion to $1.4 billion
Free cash flow(2)
$1.8 billion to $2.1 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
$
3,110
to
$
3,520
Less:
Capital expenditures
1,300
to
1,400
Excess tax benefit from share-based compensation payments
10
to
20
Free cash flow
$
1,800
to
$
2,100
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, April 30, 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 www.OReillyAuto.com 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 264620. A replay of the conference call will be available on the Company's website through Thursday, April 29, 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 www.OReillyAuto.com 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 March 31, 2026, the Company operated 6,644 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 SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except share data)
March 31, 2026
March 31, 2025
December 31, 2025
(Unaudited)
(Unaudited)
(Note)
Assets
Current assets:
Cash and cash equivalents
$
252,632
$
191,248
$
193,793
Accounts receivable, net
431,173
392,168
389,793
Amounts receivable from suppliers
165,033
129,921
159,900
Inventory
5,810,121
5,172,436
5,731,385
Other current assets
308,377
143,694
269,406
Total current assets
6,967,336
6,029,467
6,744,277
Property and equipment, at cost
10,440,524
9,450,387
10,222,249
Less: accumulated depreciation and amortization
4,065,527
3,684,666
3,964,824
Net property and equipment
6,374,997
5,765,721
6,257,425
Operating lease, right-of-use assets
2,450,393
2,374,177
2,391,150
Goodwill
953,035
933,130
948,208
Other assets, net
191,417
191,380
197,193
Total assets
$
16,937,178
$
15,293,875
$
16,538,253
Liabilities and shareholders' deficit
Current liabilities:
Accounts payable
$
7,237,126
$
6,535,532
$
7,103,684
Self-insurance reserves
321,896
154,013
297,304
Accrued payroll
152,357
132,965
119,603
Accrued benefits and withholdings
256,015
214,547
240,072
Income taxes payable
6,996
137,142
13,957
Current portion of operating lease liabilities
445,416
425,330
439,907
