O’Reilly Automotive, Inc. Reports Second Quarter 2026 Results

• Second quarter comparable store sales growth of 6.0%
• 10% increase in second quarter diluted earnings per share to $0.86
• $2.4 billion of share repurchases and $2.0 billion net cash provided by operating activities year-to-date

SPRINGFIELD, Mo., July 29, 2026 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its second quarter ended June 30, 2026.

2nd Quarter Financial Results

Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank all of Team O’Reilly for their tremendous hard work and unwavering commitment to taking care of our customers each and every day. We are very pleased to report another quarter of strong performance, highlighted by a comparable store sales increase of 6.0% and a 10% increase in diluted earnings per share. Our Team continues to consistently execute our proven dual market strategy at a high level and delivered solid growth in both professional and DIY during the quarter. We remain committed to taking market share by providing unsurpassed levels of service to our customers, supported by best-in-class parts availability.”

Sales for the second quarter ended June 30, 2026, increased $367 million, or 8%, to $4.89 billion from $4.53 billion for the same period one year ago. Gross profit for the second quarter increased 8% to $2.52 billion (or 51.4% of sales) from $2.33 billion (or 51.4% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the second quarter increased 8% to $1.53 billion (or 31.3% of sales) from $1.41 billion (or 31.2% of sales) for the same period one year ago. Operating income for the second quarter increased 8% to $986 million (or 20.2% of sales) from $914 million (or 20.2% of sales) for the same period one year ago.

Net income for the second quarter ended June 30, 2026, increased $46 million, or 7%, to $715 million (or 14.6% of sales) from $669 million (or 14.8% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 10% to $0.86 on 829 million shares versus $0.78 on 858 million shares for the same period one year ago.

Year-to-Date Financial Results

Mr. Beckham concluded, “As a result of our strong performance in the first half of 2026, we are raising our full-year 2026 comparable store sales guidance to a range of 4% to 6%. Our updated full-year sales outlook reflects our confidence in the strength of the underlying demand drivers within our industry, as well as our Team’s focus on providing the excellent customer service that drives long-term profitable growth. Year-to-date, we have opened 110 net, new stores across North America, and we are on track to achieve our goal of 225 to 235 net, new store openings in 2026.”

Sales for the first six months of 2026 increased $791 million, or 9%, to $9.45 billion from $8.66 billion for the same period one year ago. Gross profit for the first six months of 2026 increased 9% to $4.86 billion (or 51.5% of sales) from $4.45 billion (or 51.4% of sales) for the same period one year ago. SG&A expenses for the first six months of 2026 increased 9% to $3.04 billion (or 32.1% of sales) from $2.79 billion (or 32.2% of sales) for the same period one year ago. Operating income for the first six months of 2026 increased 10% to $1.83 billion (or 19.3% of sales) from $1.66 billion (or 19.1% of sales) for the same period one year ago.

Net income for the first six months of 2026 increased $112 million, or 9%, to $1.32 billion (or 14.0% of sales) from $1.21 billion (or 13.9% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2026 increased 13% to $1.58 on 836 million shares versus $1.40 on 861 million shares for the same period one year ago.

2nd Quarter Comparable Store Sales Results

Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 6.0% for the second quarter ended June 30, 2026, on top of 4.1% for the same period one year ago. Comparable store sales increased 7.0% for the six months ended June 30, 2026, on top of 3.9% for the same period one year ago.

Share Repurchase Program

During the second quarter ended June 30, 2026, the Company repurchased 16.7 million shares of its common stock, at an average price per share of $90.40, for a total investment of $1.51 billion. During the first six months of 2026, the Company repurchased 26.7 million shares of its common stock, at an average price per share of $91.17, for a total investment of $2.43 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $24.3 million for the six months ended June 30, 2026. Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 7.3 million shares of its common stock, at an average price per share of $86.81, for a total investment of $632 million. The Company has repurchased a total of 1.50 billion shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $20.32, for a total aggregate investment of $30.42 billion. As of the date of this release, the Company had approximately $1.33 billion remaining under its current share repurchase authorization.

Updated Full-Year 2026 Guidance

The table below outlines the Company’s updated guidance for selected full-year 2026 financial data:

     For the Year Ending  December 31, 2026Net, new store openings 225 to 235Comparable store sales 4.0% to 6.0%Total revenue $18.9 billion to $19.2 billionGross profit as a percentage of sales 51.5% to 52.0%Operating income as a percentage of sales 19.3% to 19.8%Effective income tax rate 22.5%
Diluted earnings per share(1) $3.20 to $3.30Net cash provided by operating activities $3.1 billion to $3.5 billionCapital expenditures $1.3 billion to $1.4 billionFree cash flow(2) $1.8 billion to $2.1 billion

(1) Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.(2) Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:

                For the Year Ending  (in millions) December 31, 2026  Net cash provided by operating activities $3,110 to $3,520  Less:Capital expenditures  1,300 to  1,400   Excess tax benefit from share-based compensation payments  10 to  20  Free cash flow $1,800 to $2,100          

Non-GAAP Information

This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.

Earnings Conference Call Information

The Company will host a conference call on Thursday, July 30, 2026, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 532005. A replay of the conference call will be available on the Company’s website through Thursday, July 29, 2027.

About O’Reilly Automotive, Inc.

O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of June 30, 2026, the Company operated 6,695 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.

Forward-Looking Statements

The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; trade disputes and changes in trade policies, including the imposition of new or increased tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2025, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

  For further information contact:Investor Relations Contacts Leslie Skorick (417) 874-7142 Eric Bird (417) 868-4259   Media Contact Sonya Cox (417) 427-8071 

 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)             June 30, 2026 June 30, 2025 December 31, 2025  (Unaudited) (Unaudited) (Note)Assets         Current assets:         Cash and cash equivalents $262,181  $198,613  $193,793 Accounts receivable, net  457,785   428,828   389,793 Amounts receivable from suppliers  170,728   123,273   159,900 Inventory  5,971,856   5,399,588   5,731,385 Other current assets  337,082   165,504   269,406 Total current assets  7,199,632   6,315,806   6,744,277           Property and equipment, at cost  10,741,816   9,708,429   10,222,249 Less: accumulated depreciation and amortization  4,191,571   3,758,465   3,964,824 Net property and equipment  6,550,245   5,949,964   6,257,425           Operating lease, right-of-use assets  2,484,413   2,409,177   2,391,150 Goodwill  955,211   943,314   948,208 Other assets, net  199,615   202,358   197,193 Total assets $17,389,116  $15,820,619  $16,538,253           Liabilities and shareholders’ deficit         Current liabilities:         Accounts payable $7,384,958  $6,858,649  $7,103,684 Self-insurance reserves  214,311   158,844   297,304 Accrued payroll  176,174   145,629   119,603 Accrued benefits and withholdings  275,493   238,984   240,072 Income taxes payable  —   312,545   13,957 Current portion of operating lease liabilities  452,275   434,151   439,907 Other current liabilities  1,071,463   573,084   561,294 Total current liabilities  9,574,674   8,721,886   8,775,821           Long-term debt  7,014,543   5,823,744   6,016,904 Operating lease liabilities, less current portion  2,120,615   2,055,053   2,034,688 Deferred income taxes  238,615   211,920   211,210 Other liabilities  276,394   239,878   262,982           Shareholders’ equity (deficit):         Common stock, $0.01 par value:         Authorized shares – 1,250,000,000         Issued and outstanding shares –         816,165,813 as of June 30, 2026,         850,561,094 as of June 30, 2025, and         841,909,238 as of December 31, 2025  8,162   8,506   8,419 Additional paid-in capital  1,536,955   1,499,288   1,530,292 Retained deficit  (3,416,414)  (2,748,221)  (2,328,817)Accumulated other comprehensive income  35,572   8,565   26,754 Total shareholders’ deficit  (1,835,725)  (1,231,862)  (763,352)          Total liabilities and shareholders’ deficit $17,389,116  $15,820,619  $16,538,253             

Note: The balance sheet at December 31, 2025, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.

 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)                For the Three Months Ended For the Six Months Ended  June 30, June 30,  2026  2025  2026  2025 Sales $4,892,013  $4,525,058  $9,452,552  $8,661,982 Cost of goods sold, including warehouse and distribution expenses  2,375,273   2,198,520   4,588,601   4,213,959 Gross profit  2,516,740   2,326,538   4,863,951   4,448,023              Selling, general and administrative expenses  1,530,994   1,412,068   3,036,597   2,792,087 Operating income  985,746   914,470   1,827,354   1,655,936              Other income (expense):            Interest expense  (69,871)  (57,337)  (132,616)  (114,901)Interest income  1,589   1,885   3,337   3,549 Other, net  6,611   2,437   6,089   1,222 Total other expense  (61,671)  (53,015)  (123,190)  (110,130)             Income before income taxes  924,075   861,455   1,704,164   1,545,806 Provision for income taxes  209,011   192,860   384,919   338,726 Net income $715,064  $668,595  $1,319,245  $1,207,080              Earnings per share-basic:            Earnings per share $0.87  $0.78  $1.59  $1.41 Weighted-average common shares outstanding – basic  825,197   854,003   831,853   856,768              Earnings per share-assuming dilution:            Earnings per share $0.86  $0.78  $1.58  $1.40 Weighted-average common shares outstanding – assuming dilution  828,875   858,440   835,661   861,368                 

 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)          For the Six Months Ended  June 30,  2026  2025 Operating activities:      Net income $1,319,245  $1,207,080 Adjustments to reconcile net income to net cash provided by operating activities:      Depreciation and amortization of property, equipment and intangibles  273,643   247,159 Amortization of debt discount and issuance costs  3,818   3,667 Deferred income taxes  27,504   (36,679)Share-based compensation programs  17,512   18,812 Other  5,722   7,945 Changes in operating assets and liabilities:      Accounts receivable  (75,256)  (73,966)Inventory  (239,312)  (280,899)Accounts payable  284,815   331,082 Income taxes payable  (33,836)  314,779 Other  455,557   (227,014)Net cash provided by operating activities  2,039,412   1,511,966        Investing activities:      Purchases of property and equipment  (552,050)  (587,685)Proceeds from sale of property and equipment  5,142   2,695 Other, including acquisitions, net of cash acquired  (2,767)  (10,008)Net cash used in investing activities  (549,675)  (594,998)       Financing activities:      Net proceeds of commercial paper  651,888   298,918 Proceeds from the issuance of long-term debt  847,365   — Principal payments on long-term debt  (500,000)  — Payment of debt issuance costs  (6,655)  (3,815)Payment of excise tax on share repurchases  (18,718)  (17,012)Repurchases of common stock  (2,433,023)  (1,176,640)Net proceeds from issuance of common stock  37,763   48,167 Other  (270)  (433)Net cash used in financing activities  (1,421,650)  (850,815)       Effect of exchange rate changes on cash  301   2,215 Net increase in cash and cash equivalents  68,388   68,368 Cash and cash equivalents at beginning of the period  193,793   130,245 Cash and cash equivalents at end of the period $262,181  $198,613        Supplemental disclosures of cash flow information:      Income taxes paid $100,317  $393,872 Interest paid, net of capitalized interest  119,269   110,374         

 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)           For the Twelve Months Ended  June 30,Adjusted Debt to EBITDAR: 2026 2025(In thousands, except adjusted debt to EBITDAR ratio)      GAAP debt $7,014,543 $5,823,744Add:Letters of credit  197,809  162,289 Unamortized discount and debt issuance costs  30,457  26,256 Six-times rent expense  3,030,750  2,834,550Adjusted debt $10,273,559 $8,846,839       GAAP net income $2,650,374 $2,423,674Add:Interest expense  252,779  225,470 Provision for income taxes  748,155  655,250 Depreciation and amortization  537,714  486,166 Share-based compensation expense  33,815  33,514 Rent expense (i)  505,125  472,425EBITDAR $4,727,962 $4,296,499       Adjusted debt to EBITDAR  2.17  2.06

(i) The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended June 30, 2026 and 2025 (in thousands):

              For the Twelve Months Ended    June 30,    2026 2025  Total lease cost, per ASC 842 $606,667 $570,733  Less:Variable non-contract operating lease components, related to property taxes and insurance  101,542  98,308  Rent expense $505,125 $472,425

          June 30,  2026 2025Selected Balance Sheet Ratios:       Inventory turnover(1)  1.6  1.6Average inventory per store (in thousands) (2) $892 $833Accounts payable to inventory (3)  123.7%
  127.0%

                 For the Three Months Ended For the Six Months Ended   June 30, June 30,   2026 2025 2026 2025Reconciliation of Free Cash Flow (in thousands):            Net cash provided by operating activities $1,006,499 $756,846 $2,039,412 $1,511,966Less:Capital expenditures  307,603  300,734  552,050  587,685 Excess tax benefit from share-based compensation payments  6,194  7,348  9,546  20,273Free cash flow $692,702 $448,764 $1,477,816 $904,008

               For the Three Months Ended For the Six Months Ended  June 30, June 30,  2026 2025 2026 2025Revenue Disaggregation (in thousands):           Sales to do-it-yourself customers$2,336,858 $2,228,566 $4,526,990 $4,280,425Sales to professional service provider customers  2,469,582  2,195,840  4,760,366  4,194,433Other sales and sales adjustments  85,573  100,652  165,196  187,124Total sales $4,892,013 $4,525,058 $9,452,552 $8,661,982

               For the Three Months Ended For the Six Months Ended For the Twelve Months Ended  June 30, June 30, June 30,  2026 2025 2026 2025  2026 2025 Store Count:            Beginning domestic store count 6,495 6,298 6,447 6,265  6,360 6,152 New stores opened 46 62 94 95  181 208 Stores closed — — — —  — — Ending domestic store count 6,541 6,360 6,541 6,360  6,541 6,360              Beginning Mexico store count 121 93 112 87  98 69 New stores opened 5 5 14 11  28 29 Stores closed — — — —  — — Ending Mexico store count 126 98 126 98  126 98              Beginning Canada store count 28 25 26 26  25 23 New stores opened — — 2 —  3 3 Stores closed — — — (1) — (1)Ending Canada store count 28 25 28 25  28 25              Total ending store count 6,695 6,483 6,695 6,483  6,695 6,483

               For the Three Months Ended For the Twelve Months Ended  June 30, June 30,  2026 2025 2026 2025Store and Team Member Information:            Total employment  95,822  92,810      Square footage (in thousands)(4)  52,697  50,238      Sales per weighted-average square foot(4)(5) $91.10 $88.76 $351.82 $342.83Sales per weighted-average store (in thousands)(4)(6) $733 $698 $2,811 $2,672            

(1) Calculated as cost of goods sold for the last 12 months divided by average inventory.(2) Calculated as inventory divided by store count at the end of the reported period.(3) Calculated as accounts payable divided by inventory.(4) Represents O’Reilly’s U.S. and Puerto Rico operations only.(5) Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.(6) Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.