GPC US S&P 500Russell 1000 Earnings call · transcribed from the recording
Genuine Parts Company (GPC) · Q3 2026 results and valuation
Share price: $123.75 · 2026-11-11
Genuine Parts Company is an American distributor of automotive and industrial parts. The company operates in the United States, Canada, Mexico, and several countries in Europe and Australasia. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 20 Oct 2026 and 21 Jul 2026
Net income down 1.4% on the previous quarter. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
1 · Numbers
−1.4%
Net income vs Q2 2026
Outlook given
Net income 224.4M vs 227.6M
Revenue −0.2%
2 · How management spoke
Typical
More upbeat than 58% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Genuine Parts Company raised its guidance for adjusted diluted earnings per share to a range of $7.50 to $7.75, representing a 3.5% increase at the midpoint compared to 2025.
Valuation
Is Genuine Parts Company undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 3.2% growth a year (3-year revenue growth), the model's fair value is $9.43 a share — the stock trades 1213% above it. Today's price assumes 20.7% growth a year.
Current price
$123.75
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.
+20.7% for 10 yrs
Fair value / share
$9.43
Buy below
$7.07
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Gross margin expanded by 70 basis points due to strategic pricing and sourcing initiatives.
Source quote
“Gross margin expansion of 70 basis points in line with our expectations driven by strategic pricing and sourcing initiatives.”
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Guidance
GPC raised its guidance for adjusted diluted earnings per share to a range of $7.50 to $7.75, which represents a 3.5% increase at the midpoint compared to 2025.
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Figure
Industrial total sales reached $2.4 billion, an increase of approximately $140 million or 6% over the same period last year, with comparable sales increasing 5.5%.
Source quote
“Total sales for industrial were $2.4 billion, an increase of approximately $140 million, or up 6% versus the same period in the prior year, with comparable sales up 5.5%.”
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Guidance
GPC expects approximately $15 to $25 million of incremental costs for the remainder of the year due to the Iran conflict.
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Figure
The break-fix MRO business grew approximately 5% while capital-intensive projects grew nearly 10% during the quarter, contributing to the total motion sales.
Source quote
“Our core break-fix MRO business, which accounts for approximately 80% of motion sales, was up approximately 5% during the quarter, and the remaining 20% of motion sales, which originates from more capital-intensive projects, was up nearly 10%.”
4 more
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Figure
Adjusted earnings per share rose approximately 5% to $2.07 in the third quarter.
Source quote
“During the third quarter, adjusted earnings per share was $2.07, an increase of approximately 5%.”
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Key theme
GPC increased its projected impact for the rest of the year from 20 to 30 million to 30 to 40 million after recording a 16 million impact for the quarter.
Source quote
“And so we've given you that impact for the quarter, 16 million. We ticked it up a bit for the rest of the year versus that second half. Original expectation that I gave you of 20 to 30 million, we now see that to be 30 to 40 million.”
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Key theme
GPC reported 4% sales growth and profitability in line with expectations for the quarter.
Source quote
“Our team's delivered on another solid quarter with 4% sales growth and profitability in line with our expectations.”
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Figure
The industrial segment EBITDA increased 11% with a margin of 13.2%, up 60 basis points year over year.
Source quote
“Industrial segment EBITDA increased 11%, with EBITDA margin of 13.2%, up 60 basis points year over year.”
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: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Despite these conditions, our teams continue to be focused, motivated, and executing at a high level to win profitable market share as well as adding capabilities.”
“Our investments in supply chain infrastructure are scaling as intended and driving meaningful cost efficiency and improved inventory productivity, positioning the business to deliver stronger performance as the market recovers.”
“Our responsibility is to give our teams the network, tools, and leadership they need to perform at their best while fostering a culture focused on providing exceptional service to customers.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 6.52B | 6.54B | −0.2% | 6.26B | +4.2% |
| Gross profit | 2.48B | 2.47B | +0.5% | 2.34B | +6.1% |
| Operating income | 278.6M | 293.8M | −5.2% | 291.7M | −4.5% |
| Net income | 224.4M | 227.6M | −1.4% | 226.2M | −0.8% |
| EPS | 1.62 | 1.65 | −1.8% | 1.62 | ±0% |
| P/E today 472.3 | 483.6 | 471.9 | +11.7 | 23.9 | +459.7 |
Topics
Most discussed now
- If Genuine Parts is unable to get to your questions, please contact its Investor Relations Department.
- While the global operating environment remains dynamic, with geopolitical uncertainty in the Middle East, persistent cost inflation, and a…
- Over my first six weeks in the role, I've spent time meeting with team members, connecting with independent owners, and...
- Genuine Parts' results were driven by higher sales, particularly in industrial, gross margin expansion, and the benefits from its global…
- In the U.S., NAPA is performing kind of in line with where Genuine Parts exited the overall quarter rate without an...
Faded since Q2 2026
- Fading That's an important backdrop because Genuine Parts' teams at NAPA are now turning to this playbook to its independent owner base,...
- Fading Genuine Parts delivered a strong second quarter, reflecting focused teamwork and disciplined execution across the businesses, despite a…
- Fading To give you some data there, Genuine Parts has moved from company-owned store sales growth of -0.5% in 2024 to +2.3% in...
- Fading There was a lot of trying to call the ball on anticipated price increases, anticipated increase in gasoline prices.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Genuine Parts Company reported third-quarter sales of $6.5 billion, an increase of 4.2% compared to $6.3 billion in the same period of the prior year.
- Director or officer change; Regulation FD disclosure · SEC 8-K
Genuine Parts Company announced the appointment of Court Carruthers as CEO-elect of GPC and Will Stengel as Chairman and CEO of Motion ahead of a planned separation in the first quarter of 2027.
- Other events · SEC 8-K
Genuine Parts Company declared a regular quarterly cash dividend of $1.0625 per share, payable on October 2, 2026, to shareholders of record on September 4, 2026.
- Results of operations · SEC 8-K
Genuine Parts Company reported second-quarter sales of $6.5 billion, a 6.0% increase from $6.2 billion in the same period of the prior year.
- Material agreement; New financial obligation; Shareholder vote results; Other events · SEC 8-K
- Results of operations · SEC 8-K
Genuine Parts Company reported first-quarter sales of $6.3 billion, an increase of 6.8% compared to $5.9 billion in the same period of the prior year.
- Director or officer change · SEC 8-K
Naveen Krishna, the Executive Vice President, Chief Information & Digital Officer, announced his resignation effective April 1, 2026, to pursue other opportunities.
- Results of operations; Other events · SEC 8-K
Genuine Parts Company reported fourth-quarter sales of $6.0 billion, a 4.1% increase from $5.8 billion in the prior year, and full-year sales of $24.3 billion, up 3.5% from 2024.