AN NYSE Russell 1000 Earnings call
Autonation, Inc. (AN) · Q2 2026 results and valuation
Share price: $187.21 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 31 Jul 2026 and 1 May 2026
Net income down 11.3% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−11.3%
Net income vs Q1 2026
Outlook given
Net income 182.1M vs 205.4M
Revenue +5.8%
Against the same quarter last year (Q2 2025) it is +110.8%; the dip on last quarter is small next to the change on last year.
2 · How management spoke
Upbeat
More upbeat than 79% of company calls
Answers to analysts: upbeat, in line with the script.
Last call it was different: the answers were less upbeat than the script.
3 · What stood out
Guidance
Six consecutive quarters of EPS growth expected to continue as capital is deployed for shareholders.
Valuation
Is Autonation, Inc. undervalued?
Reverse DCF. Average free cash flow of the last three fiscal years (the last year was negative) (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
The projected cash flow doesn't cover the debt, so the price is far above the model's fair value.
Current price
$187.21
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.
+46.3% for 10 yrs
Fair value / share
$-113.15
Buy below
$-84.86
Price vs fair value
n/a
Price vs buy-below price
n/a
Read between the lines
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Guidance
The company expects unit sales to continue to track largely in line with current trends because consumer demand and industry sales remain resilient.
Source quote
“But as I mentioned at the opening, consumer demand and industry sales do remain resilient and as such, we expect our unit sales to continue to track largely...”
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Figure
BEV sales decreased by more than 30% year-over-year, impacting the company's revenue drivers.
Source quote
“BEV sales were down by more than 30% year-over-year.”
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Fading
Marginal new car buyers drove part of the above-40,000 result, so sourcing vehicles across all price bands is important.
Source quote
“But I do think that some of the drivers of that above 40,000 were maybe those marginal new car buyers... There's no doubt about that. So sourcing vehicles across all of those price band is important for us.”
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.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“And further, we consistently deliver amongst the highest operating margins of the group, meaning that not only do we have strong positions in attractive segments, but we also have a...”
“We do continue to scale with AutoNation Finance the ongoing portfolio growth and improving year-over-year profitability contribute to the strength and diversification of our earnings profile.”
“This represents a 3% increase from a year ago, even after accounting for increased loan originations from AN Finance, which, as we've discussed before, bring a headwind to CFS profit...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 6.93B | 6.55B | +5.8% | 6.97B | −0.6% |
| Gross profit | 1.23B | 1.21B | +1.7% | 1.28B | −3.5% |
| Operating income | 319.0M | 314.3M | +1.5% | 217.6M | +46.6% |
| Net income | 182.1M | 205.4M | −11.3% | 86.4M | +110.8% |
| EPS | 5.39 | 5.85 | −7.9% | 2.26 | +138.5% |
| P/E today 7.5 | 8.6 | 10.6 | −2.0 | 12.5 | −3.9 |
Topics
Most discussed now
- New Incredibly resilient given everything
- Autonation's wholesale businesses saw revenues increase by 16% during the quarter.
- After sales was once again solid, in Autonation's workshops internal pay was moderately down, broadly in line with its unit...
- The I am very, very pleased with the way the after sales team continue to grow customer pay businesses regardless...
- Both a high-margin, highly recurring earnings streams and Autonation's growth and position in gross margins reflects this attractive…
Faded since Q1 2026
- Dropped Autonation is doing that with better training better technology emphasis on performance-based incentives.
- Fading Autonation continues to deliver strong operating performance coupled with excellent consistent cash conversion which enables us to maintain…
- Fading Autonation generated $256 million of adjusted free cash flow, which represents substantial cash flow conversion of adjusted earnings.
- Fading The increase reflects investments in marketing, including upper funnel spending to generate higher quality growth opportunities and build…
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations · SEC 8-K
- Results of operations · SEC 8-K
- Director or officer change; Shareholder vote results · SEC 8-K
- Results of operations · SEC 8-K
- Material agreement; New financial obligation · SEC 8-K
- Other events · SEC 8-K
- Results of operations · SEC 8-K