ORLY earnings analysis
What we found in ORLY's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Q2 2026 results showed strong operating momentum: revenue reached $4.892 billion, operating margin was 20.2%, and diluted EPS increased to $0.86 from $0.78 a year earlier. Gross margin was broadly stable at 51.4%, while the 10-Q disclosed $262.2 million of cash and $1.3 billion of commercial paper borrowings. The filing provided no new numeric guidance and stated that risk factors had not materially changed from the 2025 10-K.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Accelerated Year Over Year
- Revenue was $4.892 billion, up approximately 7.3% from $4.56 billion in Q1 2026 and 8.0% from $4.53 billion in Q2 2025.
- Operating Margin Recovered
- Operating margin increased to 20.2% from 18.4% in the prior quarter and 20.2% in the prior-year quarter; gross margin was 51.4% versus 51.5% and 51.4%, respectively.
- EPS Improved Sequentially and YoY
- Diluted EPS was $0.86, up from $0.72 in Q1 2026 and $0.78 in Q2 2025, representing increases of $0.14 and $0.08, respectively.
- Share Repurchases Increased
- The company repurchased 16.702 million shares during the quarter at an average price of $90.40 per share; remaining authorization was $1,966,095 thousand as of June 30, 2026.
- Revolver Remained Undrawn
- Cash and cash equivalents totaled $262.2 million at June 30, 2026, while the company had no borrowings under its revolving credit facility.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Variable-Rate Commercial Paper Exposure
- Commercial paper borrowings were $1.3 billion at a weighted-average variable rate of 4.065%. A 10% increase in interest rates would have an unfavorable annual impact of $5.5 million on pre-tax earnings and cash flows.
- Foreign Currency Translation Risk
- The company reported Mexican subsidiary net asset exposure of $594.7 million; a 10% currency change could result in an approximately $54.1 million loss in asset value. Canadian subsidiary exposure was $189.1 million, with an estimated $17.2 million impact from a 10% currency change.
- No Material Risk-Factor Update
- Management stated that there were no material changes to the risk factors in the December 31, 2025 Form 10-K. Litigation remains a potential exposure, although the company said existing matters were not expected to have a material adverse effect on consolidated results, financial position, or cash flows.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.86
- Gross margin
- 51.4%
- Operating margin
- 20.2%
What they said about what is next.
The 10-Q does not provide new quantitative guidance. Prior FY2026 guidance from the July 10, 2026 8-K was revenue of $18.7 billion to $19.0 billion and EPS of $3.15 to $3.25; the 10-Q does not state whether that outlook was changed.
The filing reads better than the one before it.
What came before.
- 10-Q · May 8, 2026
- O'Reilly Automotive reported strong Q1 2026 results with revenue totaling $4.56 billion, a 10% increase from the same period last year, and EPS of $0.72, up 16%. The company experienced growth in comparable store sales…
- 10-K · February 27, 2026
- O’Reilly reports continued top-line and EPS growth in fiscal 2025 with revenue rising to approximately $17.79 billion (sum of 2025 quarters) and diluted EPS of about $2.97 (sum of 2025 quarters), while maintaining gross…
- 10-Q · November 7, 2025
- O’Reilly reported a modest beat with revenue of $4,705,696,000 and diluted EPS of $0.85 for Q3 (three months ended September 30, 2025). Revenue and net income increased year-over-year while gross margin (51.9%) and…
- 10-Q · August 8, 2025
- O’Reilly reported Q2 sales of $4,525,058 (in thousands), up from $4,272,201 in Q2 2024, with gross profit of $2,326,538 and operating income of $914,470. EPS was $0.78 (diluted) versus $0.71 a year ago and in line with…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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