O’Reilly Automotive (ORLY) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 2026 revenue of $4.56 billion, up 10% year-over-year, with comparable store sales up 8.1%.

• Net income increased 12% to $604 million, and diluted EPS grew 16% to $0.72, driven by strong sales and expense management.

• Operating profit rose 14% to $842 million, representing 18.5% of sales.

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

• Opened 59 net new stores in Q1, bringing total store count to 6,644 across the U.S., Mexico, Canada, and Puerto Rico.

Financial highlights

• Gross profit rose 11% to $2.35 billion, with gross margin at 51.5%, up from 51.3% year-over-year.

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

• Operating cash flow was $1.03 billion, up from $755 million in Q1 2025.

• SG&A per store grew 5.5% in Q1, expected to moderate to 3%-4% for the full year.

• Capital expenditures for the quarter were $244 million.

Outlook and guidance

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

• Comparable store sales expected to grow 3.0%–5.0% for the year.

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

• Operating margin guidance raised to 19.3%–19.8% for the year.

• Free cash flow expected between $1.8–$2.1 billion for the year.