O'Reilly Q3 sales beat analyst estimates on professional business growth, tariff refunds

Overview

• U.S. auto parts retailer's Q3 sales rose 9%, beating analyst expectations

• Diluted EPS for Q3 increased 14%, aided by tariff refunds

• Company repurchased 11.8 mln shares for $1.03 bln in Q3

Outlook

• O'Reilly raises full-year 2026 comparable store sales guidance to 5.5%-6.5%

• Company lifts 2026 gross margin guidance to 51.6%-52.1% and operating profit to 19.5%-20.0%

• O'Reilly expects 2026 revenue of $19.0 bln to $19.3 bln and EPS of $3.25 to $3.35

Result Drivers

• PROFESSIONAL BUSINESS GROWTH - Co said double-digit growth in its professional business contributed to Q3 sales increase

• TARIFF REFUNDS - $39 mln benefit from tariff refunds boosted Q3 earnings per share

• DIY SEGMENT GAINS - Co said mid-single digit growth in DIY segment supported overall sales growth

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the auto vehicles, parts & service retailers peer group is "buy"

• Wall Street's median 12-month price target for O'Reilly Automotive, Inc. is $108.00, about 20.2% above its October 27 closing price of $89.82

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 27 three months ago

Reuters Recommended Reads

• Oct 28 - Boot Barn Q2 sales slightly beat estimates on new store openings and higher same store sales

• Oct 27 - Rocky Brands Q3 sales rise on strong demand, tariff refund helps margins

• Oct 26 - Dorman Products Q3 sales slightly miss estimates on tariff pricing impact

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)