O'Reilly Posts 7.2% Q3 Same-Store Sales Growth, Topping Q2's 6% Pace
ORLY is trading near its 52-week low of $82.59 (13% above the low).
Summary
O'Reilly's third-quarter comparable store sales rose 7.2% on top of 5.6% in the prior year, a two-year stack of 12.8% and an acceleration from the 6% growth it posted in Q2 2026, a jump toward 7% from the mid-single-digit comp pace it had been running. Q3 sales rose 9% to $5.12B from $4.71B, with gross profit of $2.68B (52.4% of sales) and operating income up 13% to $1.10B (21.4% of sales); the quarter included a $39 million benefit from tariff refunds. The quarter produced EPS of 97c, or diluted EPS of $0.97 on 812 million shares versus $0.85 on 853 million shares, and net income of $785.6M, up 8% from $726M and 15.3% of sales versus 15.4%. For the full year, the company raised 2026 comparable store sales guidance to 5.5%-6.5%, gross margin to 51.6%-52.1% and operating margin to 19.5%-20.0%, and it sees EPS of $3.25 to $3.35 and sales of $19B to $19.3B, with an effective tax rate of 22.7%, operating cash flow of $3.2B-$3.6B, capital expenditures of $1.3B-$1.4B and free cash flow of $1.9B-$2.2B. Through nine months, sales were $14.57B, comparable store sales rose 7.1%, net income was $2.10B and diluted EPS $2.54 versus $2.25. The company repurchased 11.8 million shares in Q3 at an average $87.34 for $1.03 billion, 38.5 million shares year to date at an average $89.99 for $3.47 billion, and 2.3 million shares after the quarter at an average $87.11 for $204 million, leaving approximately $727 million under its current authorization; it has opened 173 net new stores year to date and expects 225-235 net openings in 2026. The release lands on the date the company pre-announced in its October 1 8-K, with the conference call scheduled for Thursday, October 29, 2026, at 10:00 a.m. Central Time.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — O'Reilly raised full-year 2026 comparable store sales guidance to 5.5%-6.5%, gross margin to 51.6%-52.1% and operating margin to 19.5%-20.0%.
- Q3 sales rose 9% to $5.12B from $4.71B; gross profit $2.68B (52.4% of sales).
- Q3 operating income rose 13% to $1.10B (21.4% of sales); SG&A $1.58B (30.9% of sales).
- Third quarter included $39 million benefit from tariff refunds.
- Diluted EPS $0.97 on 812 million shares versus $0.85 on 853 million shares.
- Nine-month sales $14.57B; net income $2.10B; diluted EPS $2.54 versus $2.25.
- Nine-month comparable store sales rose 7.1%; third quarter two-year stack 12.8%.
- Q3 repurchases: 11.8 million shares at average $87.34, totaling $1.03 billion.
- Year-to-date repurchases: 38.5 million shares at average $89.99, totaling $3.47 billion.
- Subsequent to quarter, repurchased 2.3 million shares at average $87.11 for $204 million.
- Approximately $727 million remaining under current share repurchase authorization.
- Year-to-date opened 173 net new stores; on track for 225-235 net openings in 2026.
- Full-year 2026 guidance: effective tax rate 22.7%; operating cash flow $3.2B-$3.6B.
- Full-year 2026 capital expenditures guidance $1.3B-$1.4B; free cash flow $1.9B-$2.2B.
- Q3 net income $785.6M, up 8% from $726M; 15.3% of sales versus 15.4%.
- Q3 gross profit $2.68B (52.4% of sales) versus $2.44B (51.9%).
- Q3 SG&A $1.58B (30.9% of sales) versus $1.46B (31.1%).
- Q3 operating income $1.10B (21.4% of sales) versus $976M (20.7%).
- Nine-month gross profit $7.55B (51.8% of sales); SG&A $4.62B (31.7%).
- Nine-month operating income $2.93B (20.1% of sales) versus $2.63B (19.7%).
- Nine-month net income $2.10B (14.4% of sales) versus $1.93B (14.5%).
- Q3 interest expense $81.9M versus $59.6M; nine-month $214.5M versus $174.5M.
- Q3 income before income taxes $1.02B; provision $236.5M; nine-month provision $621.4M.
- Nine-month net cash provided by operating activities $2.60B versus $2.13B.
- Nine-month capital expenditures $860.3M; free cash flow $1.73B versus $1.20B.
- Nine-month repurchases $3.47B cash; excise tax on repurchases $34.7M.
- Cumulative repurchases since 2011: 1.50 billion shares at average $20.63, $31.02B total.
- Q3 DIY sales $2.45B versus $2.30B; professional sales $2.60B versus $2.31B.
- Q3 comparable store sales 7.2% on top of 5.6% prior year.
- Nine-month comparable store sales increased 7.1% on top of 4.5% for the same period one year ago.
- New stores opened: Q3 domestic 54; nine-month domestic 148; nine-month Mexico 22; nine-month Canada 3.
- Total employment 96,820 versus 93,269; square footage 53,382 thousand versus 50,980 thousand.
- Sales per weighted-average square foot $94.65 versus $90.80; sales per weighted-average store $764 thousand versus $720 thousand.
- Inventory turnover 1.6; average inventory per store $912 thousand versus $858 thousand.
- Accounts payable to inventory 121.8% versus 125.9%.
- Nine-month proceeds from issuance of long-term debt $2,446,149 thousand; principal payments on long-term debt $500,000 thousand; payment of debt issuance costs $17,287 thousand.
- Nine-month net payments of commercial paper $238,843 thousand versus net proceeds of $389,796 thousand prior year.
- Nine-month income taxes paid $618,464 thousand versus $876,513 thousand; interest paid, net of capitalized interest, $180,675 thousand.
- Shares issued and outstanding 804,607,512 as of September 30, 2026 versus 846,832,348 as of September 30, 2025.
- Q3 basic EPS $0.97 on 808,851 thousand weighted-average basic shares; nine-month basic EPS $2.55.
- Nine-month diluted weighted-average shares 827,754 thousand versus 858,452 thousand.
- Free cash flow guidance reconciliation: excess tax benefit from share-based compensation payments $10 million to $20 million; capital expenditures $1,300 million to $1,400 million.
- Conference call Thursday, October 29, 2026, at 10:00 a.m. Central Time; dial-in (888) 506-0062; identification number 479629.
At the time of this announcement, ORLY was trading at $92.98 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $73.2B. The 52-week trading range was $82.59 to $102.46. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.