O'Reilly Automotive Inc. reported record financial results for the third quarter of 2026, with sales and earnings surpassing prior periods. The company announced that net sales for the third quarter ended September 30, 2026, increased $416 million, or 9%, to $5.12 billion from $4.71 billion in the same period the previous year.
Comparable store sales for the quarter increased 7.2%, building on a 5.6% increase in the prior-year period to create a two-year sales stack of 12.8%. This growth was driven by share gains in both the professional and do-it-yourself segments. The company noted that a $39 million benefit from tariff refunds received during the quarter contributed to the financial results.
On the income statement, gross profit for the third quarter increased 10% to $2.68 billion, representing 52.4% of sales. Operating income rose 13% to $1.10 billion (21.4% of sales), while net income increased 8% to $786 million (15.3% of sales). Diluted earnings per share increased 14% to $0.97 from $0.85, driven by higher sales and the tariff benefit, alongside a decrease in the weighted-average shares outstanding to 812 million.
For the first nine months of 2026, total sales increased 9% to $14.57 billion. Net income for the nine months was $2.10 billion, and diluted earnings per share increased 13% to $2.54. The company reported net cash provided by operating activities of $2.6 billion year-to-date.
O'Reilly updated its full-year 2026 guidance, raising comparable store sales expectations to a range of 5.5% to 6.5%. The company also raised its gross margin guidance to 51.6% to 52.1% and operating profit guidance to 19.5% to 20.0%. The updated guidance includes expectations for the fourth quarter.
In terms of capital allocation, the company repurchased 11.8 million shares of common stock during the third quarter at an average price of $87.34, totaling $1.03 billion. Through the first nine months of 2026, the company repurchased 38.5 million shares for $3.47 billion. As of the release date, the company had approximately $727 million remaining under its current share repurchase authorization.
Management stated that year-to-date, the company opened 173 net new stores and remains on track to reach its goal of 225 to 235 net new store openings in 2026. As of September 30, 2026, the company operated 6,758 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
