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AAP NYSE Earnings call

Advance Auto Parts Inc. (AAP) · Q2 2026 results and valuation

Share price: $45.69 · 2026-11-11

Results Q2 2026 vs Q1 2026 · previous quarter · published 20 Aug 2026 and 21 May 2026

Management sounded about as positive as a typical company call, in its script and in answers to analysts.

Only a basic analysis is available for this company at the moment.

1 · Numbers

—

No financial figures for this pair

Guidance raised

2 · How management spoke

Typical

Less upbeat than 59% of company calls

Answers to analysts: restrained, in line with the script.

Last call it was different: the answers were less upbeat than the script.

3 · What stood out

Advance Auto Parts raised its adjusted diluted EPS guidance to a range of $2.60 to $3.30.

Valuation

Is Advance Auto Parts Inc. undervalued?

Reverse DCF on net income from the last full fiscal year (no meaningful free cash flow: a bank, insurer or a year of negative cash flow) (2026-01-03), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.

At −2.0% growth a year (3-year revenue growth), the model's fair value is $2.77 a share — the stock trades 1548% above it. Today's price assumes 24.6% growth a year.

Current price

$45.69

close of 2026-11-11

Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.

+24.6% for 10 yrs

Fair value / share

$2.77

Buy below

$2.08

Price vs fair value

Overvalued >200%

Price vs buy-below price

Overvalued >200%

Official channels

The company's own website and social media accounts.

Read between the lines

  1. Key theme

    Free cash flow turned positive for the first time in two years.

    Source quote
    “The free cash flow returning to positive free cash flow. That's the first time in 2 years this company has gone... It's in a solid position. That's the first time in 2 years this company has gone to positive free cash flow.”
  2. Key theme

    Main Street Pros is the largest market, with hard parts sales continuing to outperform.

    Source quote
    “We maintained our strategic focus on growing share across Main Street Pros, which represents the largest portion of our addressable... On the other hand, in the Pro channel, our hard parts business, including brakes and undercar, continue to outperform, supported by an improvement in parts availability and consistency in delivery times. The Pro team carried the momentum from Q1 with transaction performance for this segment outpacing the overall enterprise.”
  3. Guidance ↑

    Earnings outlook raised to between $2.60 and $3.30 per share.

    Source quote
    “We have raised adjusted diluted EPS guidance to a range of $2.60 to $3.30.”
  4. Guidance

    Revenue guidance was updated because DIY sales fell more than expected as tighter household budgets weighed on consumer spending in the last four weeks.

    Source quote
    “In the DIY channel, sales declined more than we anticipated, particularly during the last 4 weeks as tighter household budgets weighed on consumer spending during the quarter.”

Tone

How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.

Prepared remarks Typical (was upbeat)
Answers to analysts Restrained (was restrained)

Script and answers carried a similar tone, so the script's message held up under questioning.

Sentences that drove the tone
“During the quarter, we also repurchased approximately $30 million of outstanding debt, which, along with improved profitability, supported further deleveraging of the balance sheet while we continue to allocate more...”
“In-store attachment rates have improved to nearly 30% from the mid-high 20% range in the same period last year, which contributes to unit share gains.”
“Through comprehensive category reviews, we are strengthening relationships with existing vendors and identifying opportunities to improve margins while also partnering with new vendors to further expand our selection of parts.”

Topics

Most discussed now

  • Advance Auto Parts has reaffirmed full year adjusted operating income margin guidance between 3.8% to 4.5%, resulting in 130 to 200 basis...
  • Based on revised inflation expectations, along with Advance Auto Parts' focused action plan to increase customer engagement, its range of…
  • New Advance Auto Parts is simplifying tasks inside of stores and communications so that when a customer does come in, that experience is as...
  • During the first 8 weeks of Q2, comparable sales grew by approximately 1%, including a low single-digit growth in Pro...
  • In Advance Auto Parts' view, the combination of a larger-than-anticipated deceleration in DIY spending with deferral in large ticket…

Faded since Q1 2026

  • Fading Based on market indicators, Advance Auto Parts believes its results were closely aligned to broader market trends, reflecting meaningful…
  • Fading You start to see the Main Street's performance and the overall Pro get more in line and then especially going...
  • Fading The fundamentals that Advance Auto Parts sees in its business and the initiatives, the impact it's having, those trends are continuing.
  • Fading A couple of things just to think about from a quarter and where Advance Auto Parts sees things going right now in...

Latest announcements

Official filings, newest first.

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