O’Reilly Automotive (ORLY) investor relations material

Executive summary

• Achieved record Q1 revenue of $4.56 billion, up 10.2% year-over-year, with comparable store sales up 8.1% and double-digit total sales growth.

• Operating profit rose 14% to $842 million, and diluted EPS increased 16% to $0.72, driven by strong sales, expense control, and share repurchases.

• Professional business posted double-digit comps for the third consecutive quarter, while the DIY segment showed mid-single-digit comp growth.

• Broad-based category strength, especially in undercar hard parts and maintenance, contributed to results.

Financial highlights

• Q1 sales increased by $424 million, with $91 million from new stores not yet in the comp base.

• Gross margin for Q1 was 51.5%, up 19 basis points year-over-year, with gross profit at $2.35 billion.

• Free cash flow for Q1 was $785 million, up from $455 million in Q1 2025.

• Net cash provided by operating activities was $1.03 billion for the quarter.

• Inventory per store ended Q1 at $874,000, up 8.5% year-over-year.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $18.7–$19.0 billion.

• Comparable store sales expected to grow 3%-5% for the year.

• Gross margin projected at 51.5%-52.0%; operating margin at 19.3%-19.8%.

• Diluted EPS guidance set at $3.15–$3.25.

• Free cash flow guidance unchanged at $1.8–$2.1 billion.

• Capital expenditures for 2026 expected at $1.3–$1.4 billion.