O'Reilly Sales Rise 9% to $5.12 Billion in Third Quarter
Key Facts
O'Reilly Automotive reported sales of $5.12 billion for the third quarter ended September 30, 2026, up 9%, or $416 million, from $4.71 billion in the year-earlier period, according to a company filing. Revenue topped the consensus estimate of $5.01 billion, while diluted earnings per share were $0.97, ahead of the $0.93 estimate, according to Investing.com. The company said diluted earnings per share rose 14% from $0.85 a year earlier, based on 812 million shares compared with 853 million. Gross profit also rose 10% to $2.68 billion from $2.44 billion in the third quarter of 2025. After the results were announced, the stock rose 3.9% in after-hours trading on Wednesday, October 28, according to Investing.com.
Sales at established stores grew faster than overall revenue, with comparable-store sales up 7.2% during the quarter. The company said the increase came on top of strong performance in the third quarter last year, lifting cumulative two-year growth to 12.8%. The chief executive attributed the performance to market-share gains, double-digit growth in the professional customer segment and mid-single-digit growth in the “do-it-yourself” segment. The mix points to contributions from both customer segments, with a faster pace among professional customers, according to the company’s description. In the second quarter of 2026, comparable-store sales had risen 6.0%, compared with an increase of 4.1% in the second quarter of 2025, according to the company’s filing with the U.S. Securities and Exchange Commission.
On profitability, gross margin was 52.4% of sales in the third quarter, compared with 51.9% in the year-earlier period. Gross profit rose alongside sales growth, from $2.44 billion to $2.68 billion, according to the official filing. The chief executive said tariff refunds received by the company during the quarter benefited earnings by $39 million. This benefit puts a specific portion of the impact of tariffs into the quarter’s results, alongside sales growth and an improvement in gross margin. The filing did not describe quarterly earnings per share as adjusted; it reported diluted earnings per share of $0.97, up 14% from a year earlier.
The company raised its outlook for fiscal 2026 and now expects comparable-store sales growth of between 5.5% and 6.5%. Its previous range, announced in July, was between 4% and 6%, according to information in the news draft. It also raised its forecast for gross margin to 51.6%–52.1% and operating margin to 19.5%–20.0%. It estimated annual revenue of between $19.0 billion and $19.3 billion and diluted earnings per share of between $3.25 and $3.35. The company’s updated annual guidance thus links sales, margins and profitability indicators, rather than focusing on revenue growth alone.
Alongside its operating performance, O'Reilly repurchased 11.8 million shares during the third quarter at an average price of $87.34 a share, for a total investment of $1.03 billion. The company also expanded its network, opening 173 net new stores in North America from the start of the year through September 30. It said it was on track to meet its target of opening 225 to 235 net new stores during 2026. These figures combine the return of capital to shareholders with the addition of new locations to the store network over the same period. The company thus presented store expansion and share repurchases alongside sales growth and improved profit margins in its quarterly results.
The third-quarter results follow the company’s comparable-store sales growth of 6.0% in the second quarter, versus 4.1% in the same period of 2025, according to its filing with the U.S. Securities and Exchange Commission. Comparable-store sales growth was 7.2% in the third quarter, while cumulative two-year growth reached 12.8%, according to the official filing. The company scheduled a call to discuss results and its future outlook for Thursday, October 29, 2026, at 10:00 a.m. Central Time. The call will cover the quarterly results and future outlook, according to the company’s announcement. It follows the results announcement and the stock’s after-hours reaction.