GET DAILY SIGNALSO'Reilly Automotive (ORLY) Delivers Strong Q3 2026 Results with +7.2% Comparable Store Sales Growth
Key Takeaways
- Third quarter 2026 sales climbed roughly 9% year over year to $5.12 billion, up from $4.71 billion in the prior-year period.
- Comparable store sales — a measure of sales at locations open at least a year — increased 7.2%, reflecting resilient demand across the aftermarket.
- Diluted earnings per share (EPS) rose 14% to $0.97, versus $0.85 a year earlier and ahead of the roughly $0.92–$0.93 consensus estimate.
- Net income reached $785.6 million, compared with $725.9 million in the same quarter last year.
- Management raised its full-year 2026 guidance for comparable store sales, gross margin, and operating profit, and repurchased 11.8 million shares for $1.03 billion during the quarter.
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Why These Results Matter
O'Reilly Automotive is one of the largest specialty retailers of automotive aftermarket parts, tools, and accessories, serving both do-it-yourself customers and professional service providers. Its quarterly results are closely watched as a barometer of vehicle-repair demand and broader consumer spending resilience. Heading into this report, investors were focused on whether comparable store sales could hold up amid an aging U.S. vehicle fleet and persistent cost pressures. The company entered the quarter with a track record of steady sales growth and strong share repurchases, making this release a key test of whether that momentum could continue into the second half of the fiscal year. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
The Numbers Behind the Quarter
O'Reilly Automotive reported third quarter 2026 sales of $5.12 billion, up about 9% from $4.71 billion in the prior-year period. Comparable store sales grew 7.2% for the quarter. Net income totaled $785.6 million, compared with $725.9 million a year earlier. Diluted EPS came in at $0.97, up from $0.85 in the same quarter of 2025 and above the consensus estimate of roughly $0.92–$0.93, while revenue also edged past the approximately $5.0 billion consensus.
Gross profit rose to $2.68 billion from $2.44 billion, and operating income increased to $1.10 billion from $976 million. Management also raised its full-year 2026 outlook, now expecting comparable store sales growth of 5.5% to 6.5% and total revenue of $19.0 billion to $19.3 billion, along with higher gross-margin and operating-profit guidance. For the first nine months of the year, sales reached $14.57 billion and net income reached $2.10 billion.
How the Market Reacted
Sentiment around ORLY heading into the release had been generally constructive, with analyst ratings skewing positive and several firms maintaining buy recommendations ahead of the print. The combination of better-than-expected earnings per share, solid comparable store sales growth, and an upward revision to full-year guidance was viewed favorably, as it signaled that aftermarket demand remains firm and that management has confidence in the balance of the year. Key factors investors are watching include margin trends, the pace of share buybacks, and whether comparable store sales can sustain their current trajectory against a backdrop of broader economic uncertainty.
What to Watch Going Forward
Following this report, investors will be watching whether O'Reilly Automotive can sustain its comparable store sales momentum into the fourth quarter and deliver on its raised full-year guidance. The company now projects full-year 2026 comparable store sales growth of 5.5% to 6.5% and total revenue of $19.0 billion to $19.3 billion, with higher expectations for gross margin and operating profit as well.
Margin management remains a central theme. Gross margin expansion will depend on product mix, pricing, and supply-chain efficiency, while selling, general and administrative expenses will reflect ongoing investments in store expansion and distribution. The pace of share repurchases — the company bought back 11.8 million shares for $1.03 billion in the quarter — is another factor that can influence per-share results over time.
On the demand side, an aging U.S. vehicle fleet and the continued shift toward professional service providers are structural tailwinds, but inflation, fuel costs, and consumer spending patterns could still shape near-term trends. Investors will also monitor any commentary on new store openings, distribution capacity, and competitive dynamics within the auto aftermarket. As always, the company's next earnings release and updated guidance will be key catalysts to watch. I’m watching this closely as the year wraps up.
Using AI Tools for Deeper Analysis
In my own research process, I often turn to Tickeron’s AI Screener when evaluating results like these. It helps filter stocks by fundamentals, technical patterns, and industry trends, allowing me to quickly compare ORLY against peers and spot potential opportunities or risks that might otherwise take hours to uncover manually. This kind of tool adds efficiency without replacing careful fundamental review.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
ORLY's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for ORLY turned positive on September 24, 2026. Looking at past instances where ORLY's MACD turned positive, the stock continued to rise in 33 of 47 cases over the following month. The odds of a continued upward trend are 70%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 14, 2026. You may want to consider a long position or call options on ORLY as a result. In 47 of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 59%.
ORLY moved above its 50-day moving average on October 15, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ORLY crossed bullishly above the 50-day moving average on October 21, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 9 of 18 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 50%.
Following a +2.98% 3-day Advance, the price is estimated to grow further. Considering data from situations where ORLY advanced for three days, in 207 of 384 cases, the price rose further within the following month. The odds of a continued upward trend are 54%.
The Aroon Indicator entered an Uptrend today. In 132 of 267 cases where ORLY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 49%.
Bearish Trend Analysis
The 10-day RSI Indicator for ORLY moved out of overbought territory on October 23, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 41 similar instances where the indicator moved out of overbought territory. In 17 of the 41 cases, the stock moved lower in the following days. This puts the odds of a move lower at 41%.
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 32 of 60 cases where ORLY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 53%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ORLY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 46%.
ORLY broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of 3 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: ORLY's P/B Ratio (-39.855) is very low in comparison to the industry average of (0.833). P/E Ratio (28.620) is within average values for comparable stocks, (40.413). Projected Growth (PEG Ratio) (1.620) is also within normal values, averaging (1.471). Dividend Yield (0.000) settles around the average of (0.041) among similar stocks. P/S Ratio (3.798) is also within normal values, averaging (48.609).
The Tickeron SMR rating for this company is 3 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 21 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 89, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 50 (best 1 - 100 worst), indicating steady price growth. ORLY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is 60 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
a retailer of auto parts, tools, supplies, and accessories
Industry AutoPartsOEM
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