ORLY US S&P 500NASDAQ-100Russell 1000 Earnings call
O'Reilly Automotive (ORLY) · Q2 2026 results and valuation
Share price: $90.54 · 2026-11-11
O'Reilly Automotive is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment, and accessories. The company serves both do-it-yourself consumers and professional service providers across North America, including the United States, Mexico, and Canada. Source: 10-K annual report (2026-02-27)
Results Q2 2026 vs Q1 2026 · previous quarter · published 30 Jul 2026 and 30 Apr 2026
Net income up 18.4% on the previous quarter. Management sounded upbeat, in its script and in answers to analysts.
1 · Numbers
+18.4%
Net income vs Q1 2026
Outlook given
Net income 715.1M vs 604.2M
Revenue +7.3%
Against the same quarter last year (Q2 2025) it is +7.0% — part of the move on last quarter is seasonal.
Why The company reported a 10% increase in diluted earnings per share in the second quarter due to a focus on delivering profitable sales growth.
2 · How management spoke
Upbeat
More upbeat than 76% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
O'Reilly Automotive increased its full year diluted earnings per share guidance to a range of $3.20 to $3.30.
Valuation
Is O'Reilly Automotive 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 7.3% growth a year (3-year revenue growth), the model's fair value is $29.39 a share — the stock trades 208% above it. Today's price assumes 20.3% growth a year.
Current price
$90.54
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.
+20.3% for 10 yrs
Fair value / share
$29.39
Buy below
$22.04
Price vs fair value
Overvalued >200%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Guidance
ORLY increased its full year diluted earnings per share guidance to a range of $3.20 to $3.30.
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Guidance
ORLY is maintaining its full year gross margin guidance range of 51.5% to 52% due to in-line first half performance and a stable market environment.
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Guidance
ORLY updated its 2026 revenue guidance to between $18.9 billion and $19.2 billion.
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Figure
The company reported a 10% increase in diluted earnings per share in the second quarter due to a focus on delivering profitable sales growth.
Source quote
“As a result of our team's relentless focus on delivering profitable sales growth, we generated a 10% increase in diluted earnings per share in the second quarter.”
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Figure
Comparable store sales grew 10% in the second quarter, marking the fourth consecutive quarter of double-digit growth.
Source quote
“Comparable store sales on this side of our business grew right at 10% in the second quarter, reflecting our fourth consecutive quarter of double-digit comps.”
4 more
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Key theme
The company projects the inflation benefit will moderate to 1% to 2% for the back half of 2026, affecting the expected margin gains in the third and fourth quarters.
Source quote
“As a result of this dynamic, we are projecting the inflation benefit to moderate to 1% to 2% for the back half of 2026 with the third quarter expected at the top end and continued moderation to the bottom end of that range by the fourth quarter.”
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Figure
Free cash flow for the first six months of 2026 was $1.5 billion, compared to $904 million in the first half of 2025.
Source quote
“Free cash flow for the first six months of 2026 was $1.5 billion versus $904 million in the first half of 2025.”
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Key theme
The company stated it has no expectation or intention of executing a large transformative acquisition in the foreseeable future.
Source quote
“This also means we have no expectation or intention of executing a large transformative acquisition in the foreseeable future.”
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Figure
The company repurchased 17 million shares at an average price of $90.40 for a total investment of $1.5 billion during the second quarter.
Source quote
“And during the second quarter, we repurchased 17 million shares at an average share price of $90.40, for a total investment of $1.5 billion.”
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
“We are pleased to be able to continue to deliver incremental margin expansion while at the same time generating the robust gross profit dollar increases that come with our market...”
“We are off to a strong start in 2026 and we remain extremely excited about our opportunities to build on this momentum to drive continued growth, and to capture a...”
“In aggregate, our comparable store sales gains continue to be driven by increases in average ticket values and robust professional ticket count growth.”
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 | 4.89B | 4.56B | +7.3% | 4.53B | +8.1% |
| Gross profit | 2.52B | 2.35B | +7.2% | 2.33B | +8.2% |
| Operating income | 985.7M | 841.6M | +17.1% | 914.5M | +7.8% |
| Net income | 715.1M | 604.2M | +18.4% | 668.6M | +7.0% |
| EPS | 0.86 | 0.72 | +19.4% | 0.78 | +10.3% |
| P/E today 27.6 | 29.2 | 30.1 | −0.9 | 32.3 | −3.1 |
Topics
Most discussed now
- In aggregate, O'Reilly Automotive's comparable store sales gains continue to be driven by increases in average ticket values and robust…
- O'Reilly Automotive's team's steadfast commitment to providing consistently high levels of service to its customers drove a comparable…
- Year to date, O'Reilly Automotive's comparable store sales have increased 7% and driven total sales growth of over 9%.
- O'Reilly Automotive continues to see very stable solid gross margin performance with only a few minor puts and takes driving the...
- O'Reilly Automotive's second quarter effective tax rate was in line with its expectations at 22.6% of pretax income, comprised of a...
Faded since Q1 2026
- Dropped Its private label penetration has climbed to over 50% of total revenue, and O'Reilly Automotive will continue to work to prudently...
- Fading O'Reilly Automotive's team successfully translated these robust sales results into an impressive 14% increase in operating profit through…
- Fading At this stage, O'Reilly Automotive believes it has the ability to manage the current dynamics surrounding product acquisition cost and…
- Fading O'Reilly Automotive's supply chain teams work to not only actively mitigate cost increases, but also to diversify its supplier base and...
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
- Regulation FD disclosure · SEC 8-K
O’Reilly Automotive, Inc. announced that it will release its third quarter 2026 earnings on October 28, 2026, followed by a conference call on October 29, 2026.
- Material agreement · SEC 8-K
O’Reilly Automotive, Inc. issued and sold $700,000,000 of 4.800% Senior Notes due 2029, $500,000,000 of 5.050% Senior Notes due 2031, and $400,000,000 of 5.550% Senior Notes due 2037.
- Material agreement · SEC 8-K
- Results of operations · SEC 8-K
O'Reilly Automotive reported second-quarter sales of $4.89 billion, up 8% from $4.53 billion a year ago, and diluted earnings per share of $0.86, a 10% increase from $0.78.
- Director or officer change · SEC 8-K
O’Reilly Automotive, Inc. appointed Colin Yankee as Executive Vice President and Chief Supply Chain Officer effective July 13, 2026, with an annual base salary of $700,000.
- Regulation FD disclosure · SEC 8-K
O’Reilly Automotive, Inc. announced that it will release its second quarter 2026 earnings on July 29, 2026, and host a conference call on July 30, 2026.
- Other events · SEC 8-K
On June 1, 2026, the Board approved an additional $2.0 billion for the share repurchase program, increasing the total authorization to $31.75 billion.
Balance sheet & ownership
From SEC filings; short interest is FINRA data via Yahoo. Collected 2026-10-11.
Cash & runway
Cash & equivalents
$262.2M
2026-06-30
Implied runway
—
operating cash flow positive over the TTM window
Dilution
weighted-average basic shares, per quarter. Change: -3.4% YoY, -1.6% QoQ.
| Quarter | Shares |
|---|---|
| Q3 2024 | 870.0M |
| Q1 2025 | 859.6M |
| Q2 2025 | 854.0M |
| Q3 2025 | 848.3M |
| Q1 2026 | 838.6M |
| Q2 2026 | 825.2M |
Shares outstanding: 809.0M (2026-08-03)
Insider transactions
Form 4 open-market trades (codes S/P), trailing 12 months. 44 filings parsed.
Sold by insiders
125.5K shares
$11.7M · 13 transactions
Bought by insiders
0 shares
0 transactions
Net direction
net selling
Catalyst calendar
management-stated targets — from the latest earnings call; plans, not promises.
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third and fourth quarters
moderation of the same SKU benefit
Source quote
“Included in our outlook for the remainder of the year is our expectation for the same SKU benefit to moderate in the third and fourth quarters as we calendar the tailwind from tariff-driven price increases that we realized in 2025.”
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back half of 2026
projection of inflation benefit to moderate to 1% to 2%
Source quote
“As a result of this dynamic, we are projecting the inflation benefit to moderate to 1% to 2% for the back half of 2026 with the third quarter expected at the top end and continued moderation to the bottom end of that range by the fourth quarter.”
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as we finish out 2026
potential volatility in guidance expectations
Source quote
“but we believe it is prudent to incorporate into our update and guide--updated guidance expectations some potential volatility as we finish out 2026.”
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full year
diluted earnings per share guidance
Source quote
“Before I move on from our guidance, I would also like to note that we are increasing our full year diluted earnings per share guidance to a range of $3.20 to $3.30.”
-
the foreseeable future
no expectation or intention of executing a large transformative acquisition
Source quote
“This also means we have no expectation or intention of executing a large transformative acquisition in the foreseeable future.”