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EarningsQ2 2026 Earnings Report

Genuine Parts Company (GPC) Q2 2026 Earnings Report

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Previous Report: Q1 2026

GPC Q2 2026 EPS Results

Actual EPS$2.15

Consensus EPS$2.08

Beat/MissBeat by +$0.07

One Year Ago EPS$2.10

GPC Q2 2026 Revenue Results

Actual Revenue$6.54B

Expected Revenue$6.43B

Beat/MissBeat by +$108.59M

YoY Revenue Growth+6.04%

Earnings Announcement Details

QuarterQ2 2026

Date07/21/2026

TimeBefore Open

Conference CallTuesday, July 21, 2026

GPC Upcoming Earnings

Genuine Parts Company's next earnings date is estimated for October 15, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

GPC Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 21, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call presented a predominately constructive operational and financial picture: company-wide sales growth (~6%), segment-level EBITDA growth across all businesses, gross margin expansion, improved industrial momentum, and clear progress toward the planned separation. These positives were tempered by ongoing inflationary pressures, expense growth (SG&A, healthcare, freight, rent), a measurable but contained Iran-related EBITDA headwind (~$16M in Q2 with $20–$30M expected for the remainder of the year), and modest moderation in Global Automotive demand and independent-owner performance. Management reaffirmed adjusted EPS guidance while incorporating prudent second-half assumptions and outlined estimated post-separation corporate cost allocations. Overall the highlights (broad-based sales and EBITDA growth, margin progress, cash generation, and separation progress) outweigh the lowlights (inflation, conflict-related costs, and some margin/owner-performance pressures), supporting a positive near-term outlook but with clear operational risks to monitor.

Company Guidance

GPC reaffirmed 2026 adjusted diluted EPS guidance of $7.50–$8.00 (about +5% at the midpoint vs. 2025) while expecting reported diluted EPS including restructuring and separation costs of $5.90–$6.40; full‑year sales are projected to grow 3.0%–5.5% with roughly a 2% benefit from pricing/tariffs/inflation, about 1 point from M&A carryover, ~1 point from strategic initiatives and ~1 point from FX, and management is modeling low‑single‑digit inflation across revenue, COGS and SG&A. Transformation expenses are expected to be $225–$250 million with $100–$125 million of 2026 savings; depreciation and interest are expected to reduce EPS by roughly $0.30, and management now assumes $20–$30 million of incremental Iran‑related costs in H2 (Q2 impact ≈$16 million to EBITDA). Year‑to‑date restructuring costs were $134 million with $55 million of savings realized (≈$30 million in Q2, a $0.16/share benefit); 2025 corporate costs were ≈$360 million, with $210–$230 million allocated to Global Automotive (including ≈$20 million asbestos) plus $25–$40 million dis‑synergies (≈$250 million total) and pro‑forma incremental costs for Global Industrial of ≈$100 million, while ≈$50 million of AR financing fees remain under review.

Total Company Sales Growth

Total GPC sales of $6.5 billion in Q2 2026, up approximately $400 million or ~6% versus Q2 2025, driven by higher sales across all segments and a 340 basis point improvement in comparable sales.

Adjusted EPS and Profitability

Adjusted earnings per share of $2.15 in Q2 versus $2.10 a year ago (≈+2.5%). Adjusted EBITDA increased 4% for the quarter.

Gross Margin Expansion

Adjusted gross margin improved by ~20 basis points to 37.9% year-over-year, driven by strategic pricing and sourcing initiatives.

Industrial (Motion) Outperformance

Industrial segment sales of $2.4 billion, up ~7% YoY (comparable sales +6%); price contribution ~2.5%. Industrial EBITDA rose ~10% to $316 million with margin of 13.1% (+30 bps YoY). Core MRO sales up ~7%; project-based sales up ~9% (strongest since Q1 2023).

North America Automotive Resilience

North America Automotive total sales up ~4% with comparable sales +2.6%; segment EBITDA $208 million, up 6% with margin 8.2% (+20 bps YoY). Company-owned store comps +4% (commercial +5.5%); NAPA system end-customer sales +3%.

International Automotive Progress

International Automotive total sales +8% (comparable sales +1%); segment EBITDA $150 million (up 6%) with margin 9.4%. European sales +4% in local currency with sequential improvement in the U.K. and Germany; APAC comps +1% with Repco named Australia's 2026 Major Retailer of the Year.

Cash Generation and Capital Deployment

Year-to-date cash from operations $464 million; net working capital improvement ~ $260 million; year-to-date capital expenditures $205 million to modernize supply chain/IT; $288 million returned to shareholders via dividends.

Progress Toward Separation

Separation of Global Automotive and Global Industrial on track for Q1 2027: standalone audit completed, confidential Form 10 expected later this summer, investor days planned for early December — significant milestone execution and governance planning underway.

Restructuring Savings Realized

Year-to-date restructuring costs $134 million with realized cost savings of $55 million, including ~$30 million in Q2, delivering an estimated $0.16 per share benefit in the quarter.

Affirmed Adjusted EPS Guidance

Reaffirming 2026 adjusted diluted EPS guidance of $7.50–$8.00 (≈+5% at midpoint vs. 2025) while providing updated assumptions for revenue, inflation and Iran-related costs.

GPC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 15, 2026	2026 (Q3)	2.04 / -	1.98	―
Jul 21, 2026	2026 (Q2)	2.08 / 2.15	2.1	2.38% (+0.05)
Apr 21, 2026	2026 (Q1)	1.75 / 1.77	1.75	1.14% (+0.02)
Feb 17, 2026	2025 (Q4)	1.82 / 1.55	1.61	-3.73% (-0.06)
Oct 21, 2025	2025 (Q3)	1.99 / 1.98	1.88	5.32% (+0.10)
Jul 22, 2025	2025 (Q2)	2.06 / 2.10	2.44	-13.93% (-0.34)
Apr 22, 2025	2025 (Q1)	1.68 / 1.75	2.22	-21.17% (-0.47)
Feb 18, 2025	2024 (Q4)	1.55 / 1.61	2.26	-28.76% (-0.65)
Oct 22, 2024	2024 (Q3)	2.42 / 1.88	2.49	-24.50% (-0.61)
Jul 23, 2024	2024 (Q2)	2.59 / 2.44	2.44	0.00% (0.00)

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