O REILLY AUTOMOTIVE INC (ORLY): Results of Operations and Financial Condition
O REILLY AUTOMOTIVE INC (ORLY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE O’REILLY AUTOMOTIVE, INC. REPORTS SECOND QUARTER 2026 RESULTS ● Second quarter comparable store sales growth of 6.0% ● 10% increase in second quarter diluted earnings per share to $0.86 ● $2.4 billion of share repurchases and $2.0 billion ne
How this was made
The 30-second read
Why it matters
The key tradable items are the raised full-year comparable store sales guidance range and the detailed FY outlook for revenue, operating margin, EPS, operating cash flow, capex, and free cash flow.
Market read
A guidance raise with concrete quarterly and full-year financial metrics typically drives immediate repricing and informs near-term positioning.
What to watch
The filing emphasizes comparable sales and buybacks, but traders may also watch for any commentary not included here on inventory, promotional intensity, or professional vs DIY mix durability into H2.
Record second-quarter revenue and earnings, with sales up 8% to $4.89 billion, comparable store sales up 6.0%, and diluted earnings per share up 10% to $0.86.
Second-quarter sales, gross profit, operating income, net income, and diluted earnings per share all increased from the prior-year period. Comparable store sales rose 6.0%, and the Company raised full-year 2026 comparable store sales guidance to 4% to 6%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| SalesGAAP | $4.89 billion | – | increased $367 million, or 8% |
| Gross profitGAAP | $2.52 billion (or 51.4% of sales) | – | increased 8% |
| SG&A expensesGAAP | $1.53 billion (or 31.3% of sales) | – | increased 8% |
| Operating incomeGAAP | $986 million (or 20.2% of sales) | – | increased 8% |
| Net incomeGAAP | $715 million (or 14.6% of sales) | – | increased $46 million, or 7% |
| Diluted earnings per common shareGAAP | $0.86 on 829 million shares | – | increased 10% |
| Comparable store salesother | 6.0% | – | – |
| Sales, first six months of 2026GAAP | $9.45 billion | – | increased $791 million, or 9% |
| Gross profit, first six months of 2026GAAP | $4.86 billion (or 51.5% of sales) | – | increased 9% |
| SG&A expenses, first six months of 2026GAAP | $3.04 billion (or 32.1% of sales) | – | increased 9% |
| Operating income, first six months of 2026GAAP | $1.83 billion (or 19.3% of sales) | – | increased 10% |
| Net income, first six months of 2026GAAP | $1.32 billion (or 14.0% of sales) | – | increased $112 million, or 9% |
| Diluted earnings per common share, first six months of 2026GAAP | $1.58 on 836 million shares | – | increased 13% |
| Comparable store sales, six months ended June 30, 2026other | 7.0% | – | – |
| Net cash provided by operating activities, year-to-dateGAAP | $2.0 billion | – | – |
For the Year Ending December 31, 2026 outlook
- Revenue$18.9 billion to $19.2 billion
- Gross margin51.5% to 52.0%
- Tax rate22.5%
- NoteNet, new store openings: 225 to 235
- NoteComparable store sales: 4.0% to 6.0%
- NoteOperating income as a percentage of sales: 19.3% to 19.8%
- NoteDiluted earnings per share: $3.20 to $3.30
- NoteNet cash provided by operating activities: $3.1 billion to $3.5 billion
- NoteCapital expenditures: $1.3 billion to $1.4 billion
- NoteFree cash flow: $1.8 billion to $2.1 billion
- NoteFree cash flow reconciliation, in millions: 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
Capital returns
- During the second quarter ended June 30, 2026, the Company repurchased 16.7 million shares of its common stock, at an average price per share of $90.40, for a total investment of $1.51 billion.
- During the first six months of 2026, the Company repurchased 26.7 million shares of its common stock, at an average price per share of $91.17, for a total investment of $2.43 billion.
- Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 7.3 million shares of its common stock, at an average price per share of $86.81, for a total investment of $632 million.
- Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $24.3 million for the six months ended June 30, 2026.
- As of the date of this release, the Company had approximately $1.33 billion remaining under its current share repurchase authorization.
- 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 $20.32, for a total aggregate investment of $30.42 billion.
What drove it
- Comparable store sales increased 6.0% for the second quarter ended June 30, 2026.
- The Company stated that it delivered solid growth in both professional and DIY during the quarter.
- Management cited execution of its dual market strategy, customer service, and parts availability.
- The updated sales outlook reflects management’s confidence in underlying demand drivers within the industry.
Concerns
- Second-quarter SG&A expenses were 31.3% of sales, compared with 31.2% of sales for the same period one year ago.
- Second-quarter net income margin was 14.6% of sales, compared with 14.8% of sales for the same period one year ago.
- The filing identifies risks including the economy in general, inflation, consumer debt levels, product demand, competition, weather, trade disputes and tariffs, supply chain disruptions, increased debt levels, and information technology and cyber-attacks.
What to watch
- Comparable store sales progression against full-year guidance of 4.0% to 6.0%.
- Execution toward the goal of 225 to 235 net, new store openings in 2026 after 110 net, new stores year-to-date.
- Gross profit as a percentage of sales against guidance of 51.5% to 52.0%.
- Operating income as a percentage of sales against guidance of 19.3% to 19.8%.
- Net cash provided by operating activities, capital expenditures, and free cash flow against full-year guidance.
Balance sheet and cash flow
- $2.0 billion net cash provided by operating activities year-to-date.
- As of June 30, 2026, the Company operated 6,695 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
- Year-to-date, the Company opened 110 net, new stores across North America.
Analysis
O’Reilly reported record second-quarter revenue and earnings for the period ended June 30, 2026. Sales increased $367 million, or 8%, to $4.89 billion, while comparable store sales increased 6.0% on top of 4.1% in the same period one year ago. Management stated that both professional and DIY delivered solid growth, supported by its dual market strategy, customer service, and parts availability.
Gross profit increased 8% to $2.52 billion and held at 51.4% of sales, the same percentage reported a year earlier. SG&A expenses increased 8% to $1.53 billion and were 31.3% of sales versus 31.2% a year ago. Operating income increased 8% to $986 million and remained 20.2% of sales. Net income increased 7% to $715 million, while net income margin was 14.6% of sales compared with 14.8% a year ago.
Diluted earnings per common share increased 10% to $0.86 on 829 million shares, compared with $0.78 on 858 million shares in the prior-year quarter. For the first six months, sales increased 9% to $9.45 billion, operating income increased 10% to $1.83 billion, and diluted earnings per common share increased 13% to $1.58. Comparable store sales for the first six months increased 7.0% on top of 3.9% a year ago.
Capital allocation remained focused on repurchases. The Company repurchased 16.7 million shares for $1.51 billion during the second quarter and 26.7 million shares for $2.43 billion during the first six months. It also repurchased an additional 7.3 million shares for $632 million after quarter end through the release date. The release reported $2.0 billion of net cash provided by operating activities year-to-date and approximately $1.33 billion remaining under the current authorization.
Management raised full-year 2026 comparable store sales guidance to 4.0% to 6.0% and guided total revenue to $18.9 billion to $19.2 billion. The outlook also calls for gross profit as a percentage of sales of 51.5% to 52.0%, operating income as a percentage of sales of 19.3% to 19.8%, diluted earnings per share of $3.20 to $3.30, and free cash flow of $1.8 billion to $2.1 billion. Store expansion is also material, with 110 net, new stores opened year-to-date and a full-year target of 225 to 235.
Management, verbatim
We are very pleased to report another quarter of strong performance, highlighted by a comparable store sales increase of 6.0% and a 10% increase in diluted earnings per share.
Brad Beckham, CEO
Our Team continues to consistently execute our proven dual market strategy at a high level and delivered solid growth in both professional and DIY during the quarter.
Brad Beckham, CEO
As a result of our strong performance in the first half of 2026, we are raising our full-year 2026 comparable store sales guidance to a range of 4% to 6%.
Brad Beckham, CEO
Not in the filing
stated, not guessed- Prior-quarter comparisons for reported second-quarter metrics.
- Non-GAAP earnings, non-GAAP earnings per share, and adjusted operating income for the reported quarter or first six months.
- Reported actual free cash flow for the second quarter or first six months.
- Reported actual capital expenditures for the second quarter or first six months.
- Period-end cash, cash equivalents, total debt, and net debt.
- Dividend information.
- Revenue by reportable segment or quantified professional and DIY sales.
- Previous-release outlook, preventing comparison of actual results with prior guidance.
- Full-year 2026 operating expense guidance.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC 8-K with Exhibit 99.1 reporting O’Reilly’s second quarter 2026 results and updated full-year 2026 guidance.
Ticker impact
O’Reilly reported Q2 results and raised full-year 2026 comparable store sales guidance to 4% to 6%, alongside EPS growth and buybacks.
Likely supportive for ORLY shares, with upside bias if investors focus on the raised comparable sales range and free-cash-flow outlook.
The filing includes specific, time-sensitive datapoints: Q2 comparable store sales +6.0%, diluted EPS +10% to $0.86, and an explicit full-year comparable store sales guidance increase to 4% to 6% with detailed revenue, margin, and FCF ranges.
Market effects
Reinforces demand and margin resilience signals for the automotive aftermarket retail sector, potentially improving sentiment toward parts retailers.
Primarily US-focused store growth and comparable sales data may support broader North American retail aftermarket sentiment.
Limited direct global read-through, but strong US aftermarket demand and capital return can influence international peers’ sentiment.
Counterpoint
Raised comparable store sales guidance may already be partially anticipated; investors could scrutinize whether margin and SG&A growth remain sustainable.
Key entities
- public_companyO’Reilly Automotive, Inc.
Reported Q2 2026 results and raised FY 2026 comparable store sales guidance; also disclosed share repurchases and full-year financial ranges.
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