O’Reilly Automotive, Inc. Reports First Quarter 2026 ResultsApr 29, 2026
O'Reilly Automotive Stores, Inc.
First quarter comparable store sales growth of 8.1% 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.
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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 SUBSIDIARIES
CONDENSED 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 Other current liabilities 804,462 910,977 561,294 Total current liabilities 9,224,268 8,510,506 8,775,821 Long-term debt 6,195,311 5,651,821 6,016,904 Operating lease liabilities, less current portion 2,090,498 2,026,668 2,034,688 Deferred income taxes 224,411 236,572 211,210 Other liabilities 269,745 225,764 262,982 Shareholders’ equity (deficit): Common stock, $0.01 par value: Authorized shares – 1,250,000,000 Issued and outstanding shares – 832,292,716 as of March 31, 2026, 856,702,725 as of March 31, 2025, and 841,909,238 as of December 31, 2025 8,323 8,567 8,419 Additional paid-in capital 1,537,430 1,476,741 1,530,292 Retained deficit (2,638,068 ) (2,805,929 ) (2,328,817 ) Accumulated other comprehensive income (loss) 25,260 (36,835 ) 26,754 Total shareholders’ deficit (1,067,055 ) (1,357,456 ) (763,352 ) Total liabilities and shareholders’ deficit $ 16,937,178 $ 15,293,875 $ 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 March 31, 2026 2025 Sales $ 4,560,539 $ 4,136,924 Cost of goods sold, including warehouse and distribution expenses 2,213,328 2,015,439 Gross profit 2,347,211 2,121,485 Selling, general and administrative expenses 1,505,603 1,380,019 Operating income 841,608 741,466 Other income (expense): Interest expense (62,745 ) (57,564 ) Interest income 1,748 1,664 Other, net (522 ) (1,215 ) Total other expense (61,519 ) (57,115 ) Income before income taxes 780,089 684,351 Provision for income taxes 175,908 145,866 Net income $ 604,181 $ 538,485 Earnings per share-basic: Earnings per share $ 0.72 $ 0.63 Weighted-average common shares outstanding – basic 838,578 859,564 Earnings per share-assuming dilution: Earnings per share $ 0.72 $ 0.62 Weighted-average common shares outstanding – assuming dilution 842,516 864,331
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands) For the Three Months Ended March 31, 2026 2025 Operating activities: Net income $ 604,181 $ 538,485 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, equipment and intangibles 135,361 122,224 Amortization of debt discount and issuance costs 1,887 1,851 Deferred income taxes 13,291 (11,159 ) Share-based compensation programs 8,816 8,444 Other 1,987 3,191 Changes in operating assets and liabilities: Accounts receivable (45,716 ) (37,758 ) Inventory (79,069 ) (75,081 ) Accounts payable 135,531 9,952 Income taxes payable 951 138,513 Other 255,693 56,458 Net cash provided by operating activities 1,032,913 755,120 Investing activities: Purchases of property and equipment (244,447 ) (286,951 ) Proceeds from sale of property and equipment 1,542 1,948 Other, including acquisitions, net of cash acquired (1,751 ) — Net cash used in investing activities (244,656 ) (285,003 ) Financing activities: Net (payments) proceeds of commercial paper (163,887 ) 129,288 Proceeds from the issuance of long-term debt 847,365 — Principal payments on long-term debt (500,000 ) — Payment of debt issuance costs (5,909 ) (3,801 ) Repurchases of common stock (922,947 ) (559,432 ) Net proceeds from issuance of common stock 16,609 24,926 Other (270 ) (433 ) Net cash used in financing activities (729,039 ) (409,452 ) Effect of exchange rate changes on cash (379 ) 338 Net increase in cash and cash equivalents 58,839 61,003 Cash and cash equivalents at beginning of the period 193,793 130,245 Cash and cash equivalents at end of the period $ 252,632 $ 191,248 Supplemental disclosures of cash flow information: Income taxes paid $ 18,909 $ 16,904 Interest paid, net of capitalized interest 43,544 39,424
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited) For the Twelve Months Ended March 31, Adjusted Debt to EBITDAR: 2026 2025 (In thousands, except adjusted debt to EBITDAR ratio) GAAP debt $ 6,195,311 $ 5,651,821 Add: Letters of credit 197,892 127,264 Unamortized discount and debt issuance costs 29,689 27,679 Six-times rent expense 2,986,494 2,771,640 Adjusted debt $ 9,409,386 $ 8,578,404 GAAP net income $ 2,603,905 $ 2,377,927 Add: Interest expense 240,245 222,964 Provision for income taxes 732,004 651,098 Depreciation and amortization 524,367 474,468 Share-based compensation expense 35,487 30,353 Rent expense(i) 497,749 461,940 EBITDAR $ 4,633,757 $ 4,218,750 Adjusted debt to EBITDAR 2.03 2.03
(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 March 31, 2026 and 2025 (in thousands):
For the Twelve Months Ended March 31, 2026 2025 Total lease cost, per ASC 842 $ 598,987 $ 558,415 Less: Variable non-contract operating lease components, related to property taxes and insurance 101,238 96,475 Rent expense $ 497,749 $ 461,940
March 31, 2026 2025 Selected Balance Sheet Ratios: Inventory turnover(1) 1.6 1.6 Average inventory per store (in thousands)(2) $ 874 $ 806 Accounts payable to inventory(3) 124.6 % 126.4 %
For the Three Months Ended March 31, 2026 2025 Reconciliation of Free Cash Flow (in thousands): Net cash provided by operating activities $ 1,032,913 $ 755,120 Less: Capital expenditures 244,447 286,951 Excess tax benefit from share-based compensation payments 3,352 12,925 Free cash flow $ 785,114 $ 455,244
For the Three Months Ended March 31, 2026 2025 Revenue Disaggregation (in thousands): Sales to do-it-yourself customers $ 2,190,132 $ 2,051,859 Sales to professional service provider customers 2,290,784 1,998,593 Other sales and sales adjustments 79,623 86,472 Total sales $ 4,560,539 $ 4,136,924
For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2026 2025 2026 2025 Store Count: Beginning domestic store count 6,447 6,265 6,298 6,131 New stores opened 48 33 197 167 Stores closed — — — — Ending domestic store count 6,495 6,298 6,495 6,298 Beginning Mexico store count 112 87 93 63 New stores opened 9 6 28 30 Stores closed — — — — Ending Mexico store count 121 93 121 93 Beginning Canada store count 26 26 25 23 New stores opened 2 — 3 3 Stores closed — (1 ) — (1 ) Ending Canada store count 28 25 28 25 Total ending store count 6,644 6,416 6,644 6,416
For the Three Months Ended For the Twelve Months Ended March 31, March 31, 2026 2025 2026 2025 Store and Team Member Information: Total employment 93,973 93,419 Square footage (in thousands)(4) 52,229 49,371 Sales per weighted-average square foot(4)(5) $ 85.94 $ 82.22 $ 349.36 $ 341.85 Sales per weighted-average store (in thousands)(4)(6) $ 688 $ 643 $ 2,774 $ 2,650
(1) Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator. (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.
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