AutoNation, Inc. reported third quarter 2026 revenue of $7.01 billion, which was relatively flat compared to the same period in 2025. The company reported diluted earnings per share (EPS) of $4.87 for the quarter, a decrease of 14% compared to $5.65 in the prior year. However, the company reported an adjusted diluted EPS of $5.11, representing a 2% increase compared to $5.01 in the prior year. This marked the seventh consecutive quarter of year-over-year growth for adjusted EPS.
On a year-to-date basis through September 30, 2026, AutoNation reported total revenue of $20.49 billion, a decrease of 1% compared to the first nine months of 2025. Diluted EPS for the nine-month period was $16.12, a 30% increase compared to $12.36 in the prior year. Adjusted diluted EPS for the nine-month period was $15.33, a 1% increase compared to $15.14 in the prior year.
During the third quarter, AutoNation generated $1.21 billion in gross profit and $314.6 million in operating income. The company noted that its After-Sales gross profit was a record, and its Customer Pay growth was 6%. Additionally, its AutoNation Finance portfolio grew by more than 40% year-over-year, with profit increasing 10X year-over-year.
In terms of capital allocation, AutoNation repurchased 3.1 million shares during the first nine months of 2026 for an aggregate purchase price of $620 million, or $198.68 per share. As of October 28, 2026, the company had repurchased 3.4 million shares for an aggregate purchase price of $668 million, or $194.99 per share. This repurchase activity reduced the company's diluted weighted average common shares outstanding by 13% year-to-date.
On October 28, 2026, AutoNation’s Board of Directors authorized the repurchase of up to an additional $1.0 billion of common stock under its share repurchase program. As of October 28, 2026, $1.4 billion remained available for share repurchases under the program. The company also reported that it utilized nearly 85% of its adjusted free cash flow for share repurchases.
AutoNation also updated its liquidity and leverage metrics. As of September 30, 2026, the company had $1.5 billion of liquidity, including $51 million in cash and $1.4 billion of availability under its revolving credit facility, net of commercial paper borrowings. The company’s covenant leverage ratio was 2.7X at quarter-end, and it had $4.3 billion of non-vehicle debt outstanding. In September 2026, the company amended its unsecured Credit Agreement, increasing the revolving borrowing capacity to $2.0 billion and extending the maturity date to September 14, 2031.
