O’Reilly earnings per diluted share rose 14% to $0.97 in the third quarter of 2026, as the auto-parts retailer reported stronger sales and raised its full-year comparable-store sales outlook.
Key Takeaways
- Quarterly revenue increased 9% to $5.12 billion, while comparable-store sales rose 7.2%.
- CEO Brad Beckham said a $39 million tariff-refund benefit contributed to earnings growth.
- O’Reilly raised its full-year comparable-store sales growth guidance to 5.5%–6.5%.
O’Reilly earnings and third-quarter sales
For the quarter ended September 30, revenue rose from $4.71 billion a year earlier. Net income increased 8% to $786 million from $726 million, while diluted earnings per share rose from $0.85.
Beckham said the comparable-sales increase reflected market-share gains in both customer groups, with double-digit growth in the professional business and mid-single-digit growth among do-it-yourself customers. He attributed the earnings-per-share increase to sales growth and the tariff refunds.
Gross profit rose to $2.68 billion, or 52.4% of sales, from $2.44 billion, or 51.9% of sales. Operating income increased to $1.10 billion from $976 million.
| Item | Details |
|---|---|
| 2026 comparable-store sales growth guidance | 5.5% to 6.5% |
| 2026 revenue guidance | $19.0 billion to $19.3 billion |
| 2026 gross margin guidance | 51.6% to 52.1% |
| 2026 operating margin guidance | 19.5% to 20.0% |
| 2026 diluted earnings-per-share guidance | $3.25 to $3.35 |
Full-year guidance and store openings
On October 28, the company raised its 2026 guidance for comparable-store sales growth, gross margin and operating margin. Beckham said the updates reflected third-quarter performance, including the tariff refunds, and the company’s margin expectations for the fourth quarter.
O’Reilly opened 173 net new stores across North America during the first nine months of 2026. It said it remained on track for 225 to 235 net openings for the full year.
Buybacks and share count
O’Reilly repurchased 11.8 million shares for $1.03 billion during the third quarter. It bought another 2.3 million shares for $204 million between the end of the quarter and the October 28 announcement, leaving approximately $727 million under its current authorization.
The company’s June 2026 quarterly filing listed 808,960,792 common shares outstanding as of August 3, before the third-quarter repurchases were complete. For the full third quarter, diluted earnings per share were calculated using a weighted-average 812 million shares, compared with 853 million a year earlier.
Next milestone
O’Reilly scheduled a conference call to discuss its results and expectations for October 29, 2026, at 10 a.m. Central time.
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