ORLY · O'Reilly Automotive, Inc.

O'Reilly Automotive delivered a strong first quarter 2026, marked by broad-based top-line momentum and operational discipline. Revenue grew 10% year-over-year to $4.56 billion, fueled by an 8.1% increase in comparable store sales — the highest in two years and notably above the prior-year’s 3.6% — with CEO Brad Beckham highlighting double-digit growth in the professional channel and mid-single-digit gains in DIY. Gross margin expanded modestly to 51.5% of sales (from 51.3%), while SG&A expenses improved as a percentage of sales to 33.0% (from 33.4%), reflecting effective cost control and productivity gains that directly enabled a 14% rise in operating income to $842 million (18.5% of sales). Net income grew 12% to $604 million, and diluted EPS increased 16% to $0.72 — a positive deviation from the February 2026 consensus estimate of $0.73 — aided by share count reduction from active buybacks. The Company repurchased $923 million worth of shares during Q1 and an additional $338 million immediately post-quarter, totaling $1.261 billion and reducing weighted-average diluted shares to 842.5 million (down from 864.3 million year-ago). Management reaffirmed confidence in underlying demand stability and raised full-year guidance, narrowing the EPS range to $3.15–$3.25 and projecting continued margin expansion, with operating income margin guided to 19.3–19.8% and gross margin to 51.5–52.0%. The $1.14 billion remaining on the share repurchase authorization provides near-term capital return flexibility, while the $1.3–1.4 billion capex plan signals ongoing investment in store growth (225–235 net new stores) and infrastructure. Collectively, these results underscore O’Reilly’s pricing power, operating leverage, and execution capability in a stable aftermarket environment.