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…
Earnings analysis · 10-Q
ORLY earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
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…
Read full summary
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.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.86
What stood out
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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.
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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.
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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.
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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.
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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.
What to watch
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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.
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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.
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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.
Management's outlook
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.
Earlier filings 4
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 itself. Analysis can contain errors; check the source document for full context.