O’Reilly Raises 2026 Comparable-Store Sales Growth Outlook to 5.5%–6.5%
Key Facts
O’Reilly Automotive raised its 2026 comparable-store sales growth outlook to a range of 5.5%–6.5%, reflecting strong performance in the third quarter and the company’s expectations for the rest of the year. In July, the company had expected growth of 4.0% to 6.0%, making the revision an increase to both ends of the annual range. The company said the revision was based on strong performance year to date, along with its fourth-quarter margin expectations. Comparable sales grew 7.2% in the third quarter ended September 30, compared with growth of 5.6% in the same period a year earlier. The company said growth came against a strong comparison base, bringing the two-year growth rate to 12.8%.
Third-quarter sales rose 9% to $5.12 billion from $4.71 billion a year earlier, an increase of $416 million. In the first nine months of 2026, sales rose 9% to $14.57 billion, compared with $13.37 billion in the corresponding period of 2025. Comparable sales in the first nine months grew 7.1%, following an increase of 4.5% in the same period a year earlier. The results put the quarter’s performance within a growth trend that has continued since the start of the year, which the company said was one factor in its review of the annual outlook. The company did not link its decision to raise guidance solely to the quarterly sales figure.
The chief executive attributed comparable-sales growth to market-share gains in both sides of the company’s business. He said the professional service segment posted double-digit growth, while the do-it-yourself business recorded mid-single-digit growth. The breakdown indicates that growth spanned both of the company’s business segments, with stronger momentum in professional service. O’Reilly had 6,758 stores as of September 30, 2026, compared with 6,538 on the same date a year earlier. The company said it had opened 173 net new stores year to date and was on track to meet its annual target.
Profitability indicators improved in the third quarter alongside sales growth. Operating income rose 13% to $1.10 billion, equal to 21.4% of sales, compared with $976 million and a 20.7% margin a year earlier. Net income was $786 million, up 8% from $726 million in the third quarter of 2025. Diluted earnings per share also rose 14% to $0.97 from $0.85. The company said sales growth, together with the benefit of tariff refunds received during the quarter, contributed to the increase in earnings per share.
The benefit from tariff refunds was $39 million in the third quarter, the company said. It said the refunds, along with sales growth, contributed to a 14% year-over-year increase in diluted earnings per share. The company included the refund benefit among the factors supporting quarterly results, but said the higher full-year outlook also reflected performance since the start of the year and its fourth-quarter margin expectations. It raised its 2026 gross margin guidance to a range of 51.6%–52.1%. It also raised its forecast for operating income as a percentage of sales to 19.5%–20.0%.
Under its updated annual guidance, O’Reilly expects revenue of $19.0 billion to $19.3 billion for the year ending December 31, 2026, and diluted earnings per share of $3.25 to $3.35. It also expects to open 225–235 net new stores during the year, after opening 173 net new stores so far. The company scheduled a call to discuss its quarterly results and future outlook for October 29, 2026, at 10 a.m. Central Time. The company’s shares closed at $90.44 on October 28, according to EL7 data.