O'Reilly Auto (ORLY) Q3 2026 Earnings Report
CH:ORLY Q3 2026 EPS Results
- Actual EPS
- CHF 0.80
- Consensus EPS
- CHF 0.77
- Beat/Miss
- Beat by +CHF 0.03
- One Year Ago EPS
- CHF 0.70
CH:ORLY Q3 2026 Revenue Results
- Actual Revenue
- CHF 4.22B
- Expected Revenue
- CHF 4.13B
- Beat/Miss
- Beat by +CHF 85.07M
- YoY Revenue Growth
- +8.83%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- After Close
- Conference Call
- Wednesday, October 28, 2026
CH:ORLY Upcoming Earnings
O'Reilly Auto's next earnings date is estimated for February 10, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
CH:ORLY Q3 2026 Earnings Call
0:00 / 0:00
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. O'Reilly reported broad-based comparable store sales growth, double-digit EPS growth, improved cash flow, raised sales, margin, operating profit, and free cash flow guidance, and accelerated its new-store expansion plans. The company also expressed confidence in continued share gains and resilient maintenance demand. Offsetting concerns included DIY transaction pressure, petroleum-category margin pressure, elevated SG&A and fuel costs, higher leverage, and expected moderation in the inflation benefit, but these issues were presented alongside strong execution and generally favorable outlook commentary.
Company Guidance
For 2026, O’Reilly raised comparable store sales guidance to a range of 5.5% to 6.5%, total revenues to between $19 billion and $19.3 billion, diluted EPS to the range of $3.25 to $3.35, gross margin to a range of 51.6% to 52.1%, operating profit to a range of 19.5% to 20%, SG&A per store growth to a range between 4.5% to 5%, effective tax rate to 22.7 percent, and free cash flow to a range of $1.9 billion to $2.2 billion; the company expects fourth-quarter inflation of 2.5, 3%, average inventory per store growth of 5 percent, inventory turns of 1.6x, capital expenditures of $1.3 billion to $1.4 billion, 225 to 235 net new store openings, and an adjusted debt to EBITDA optimal leverage target of 2.5x, while its 2027 new store target is 265 to 275 net new stores.
- Strong Comparable Store Sales GrowthThird-quarter comparable store sales increased 7.2%, while year-to-date comparable store sales increased 7.1%, despite very tough comparisons. Third-quarter comparable store sales growth on a two-year stacked basis was 12.8%, an acceleration from the first half of the year.
- Diluted EPS GrowthThe team's focus on profitable growth translated into a 14% increase in third-quarter diluted earnings per share, following a 12% increase in the third quarter of last year.
- Professional Business OutperformanceThird-quarter professional comparable store sales increased slightly over 10%, with growth split evenly between higher ticket values and increased transaction counts. Professional customer ticket count generated mid-single-digit growth, which management described as evidence of broad-based share gains.
- Retail Business Growth and Maintenance DemandThe retail business delivered a mid-single-digit comparable store sales increase. Continued prioritization of vehicle maintenance spending and strong demand in key hot-weather categories more than offset a low-single-digit headwind in DIY transaction counts through increases in average ticket.
- Hot-Weather Category StrengthPerformance in hot-weather-related categories was very strong during the third quarter, supported by favorable weather across the company's markets and the team's ability to capture market share. Strong results were sustained throughout the quarter, with robust sales growth spread fairly evenly across each month.
- Broad-Based Business PerformanceThe company stated that hot-weather categories were not the sole driver of outperformance and that it capitalized on strong demand across the breadth of the business. October sales results were also described as continuing to be strong.
- Average Ticket and Same-SKU Inflation BenefitSame-SKU inflation in the combined DIY and professional businesses was slightly over 4% in the third quarter, above expectations, primarily driven by petroleum-based products such as oil and lubricants. Overall average-ticket growth exceeded the same-SKU inflation benefit, reflecting continued parts complexity benefits and positive customer-ticket composition.
- Raised Comparable Store Sales GuidanceFull-year comparable store sales guidance was raised from 4% to 6% to a range of 5.5% to 6.5%, primarily because of third-quarter outperformance. Management expects SKU inflation to continue benefiting fourth-quarter results, while also expecting the benefit to moderate as the company laps its largest same-SKU comparison from the fourth quarter of 2025.
- Resilient Industry Demand DriversManagement reported stable growth in vehicle miles driven and continued growth and aging of the U.S. car parc. The company stated that customers continue to need vehicle repair and maintenance and that its store execution and supply chain position it to meet those needs quickly and reliably.
- Updated EPS OutlookFull-year diluted EPS guidance was updated to $3.25 to $3.35. At the midpoint, the guidance represents a 2% increase from the midpoint of the previous guidance and an 11% year-over-year increase.
- Gross Margin Expansion Including Tariff RefundsThird-quarter gross margin was 52.4%, up 54 basis points from last year and significantly above expectations. The result included a $39 million tariff-refund benefit, equivalent to 76 basis points of gross-margin rate benefit.
- Raised Gross Margin GuidanceFull-year gross margin guidance was raised by 10 basis points to a range of 51.6% to 52.1%. The guidance assumes fourth-quarter gross margin will moderate somewhat relative to the third-quarter rate that included the tariff-refund benefit.
- SG&A Leverage and Operating Profit OutlookThird-quarter SG&A leverage was 16 basis points, significantly better than expected. Full-year operating profit guidance was raised by 20 basis points to a range of 19.5% to 20%, reflecting strong operating-cost leverage and full-year operating profit margin expansion of 20-9 basis points at the midpoint.
- Inventory Availability InvestmentPer-store inventory ended the quarter at $912 thousand, up 6.3% from the prior year and 4.8% from the end of 2025. The company expects average inventory per store to grow 5% for the full year and inventory turns to be 1.6x, in line with its targeted productivity for inventory investment.
- Revenue and Free Cash Flow GrowthThird-quarter sales increased $416 million, driven by 7.2% comparable store sales growth and a $94 million non-comparable contribution from stores opened in 2025 and 2026. First-nine-month free cash flow was $1.7 billion versus $1.2 billion in the same period last year, and full-year free cash flow guidance was raised to $1.9 billion to $2.2 billion.
- New Store ExpansionThe company opened 63 new stores in the third quarter and 173 net new stores year to date. It remains on pace to open 225 to 235 net new stores in 2026 and announced a higher 2027 target of 265 to 275 net new stores.
- Continued Capital Deployment in Stores and DistributionYear-to-date capital expenditures totaled $860 million, with full-year CapEx guidance remaining at $1.3 billion to $1.4 billion. Management stated that it will continue prioritizing capital deployment toward new stores, distribution expansion, technology, inventory deployment, and supply-chain projects that support growth.
- Distribution and Automation InitiativesThe company reported 32 regional distribution centers and 400 hub stores and is continuing to evaluate automation and infrastructure investments to increase capacity, productivity, and speed of service. Management said it is pleased with the returns and results from existing goods-to-person automation investments and is working on a new South Central U.S. distribution center outside the Dallas metroplex.
- Share Repurchases and Shareholder ReturnsDuring the third quarter, the company repurchased 12 million shares at an average price of $87.34 for a total investment of $1 billion. Year-to-date repurchases through the date of the press release totaled 41 million shares and $3.7 billion. Management described the buyback program as an effective way to return excess capital to shareholders.
- Successful Debt Offering and Planned LeverageThe company issued $1.6 billion in senior notes during the third quarter, its largest-ever senior note offering, primarily to term out commercial-paper borrowings ahead of maturing senior notes. Management stated that the additional borrowing was consistent with its plan to prudently approach a 2.5x optimal leverage target.
- Consumer Maintenance and Repair SpendingManagement said DIY and DIFM consumers remain relatively healthy overall and continue to prioritize vehicle maintenance and repair. The middle- to upper-income consumer was described as healthier than the low-end DIY consumer, although overall spending on maintenance and repair remained strong.
- Confidence in Ongoing Share GainsManagement stated that it does not expect the organization to step back from its ability to grow and gain share next year. The company remains focused on compounding growth through service, availability, store expansion, distribution capabilities, and execution across the U.S., Mexico, and Canada.
CH:ORLY Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 10, 2027 | 2026 (Q4) | 0.64- | 0.58 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.770.80 | 0.7 | 14.12% (+0.10) | |
| Jul 29, 2026 | 2026 (Q2) | 0.710.71 | 0.64 | 10.26% (+0.07) | |
| Apr 29, 2026 | 2026 (Q1) | 0.570.59 | 0.51 | 15.57% (+0.08) | |
| Feb 04, 2026 | 2025 (Q4) | 0.600.58 | 0.52 | 12.16% (+0.06) | |
| Oct 22, 2025 | 2025 (Q3) | 0.690.70 | 0.63 | 11.70% (+0.07) | |
| Jul 23, 2025 | 2025 (Q2) | 0.640.64 | 0.58 | 10.95% (+0.06) | |
| Apr 23, 2025 | 2025 (Q1) | 0.540.51 | 0.51 | 1.63% (+0.01) | |
| Feb 05, 2025 | 2024 (Q4) | 0.540.52 | 0.51 | 2.59% (+0.01) | |
| Oct 23, 2024 | 2024 (Q3) | 0.630.63 | 0.59 | 6.43% (+0.04) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed