Advance Auto Parts Q3 2026: Fifth Straight EPS Beat, Revenue Miss

Advance Auto Parts posted adjusted diluted EPS of $0.79 in its third fiscal quarter of 2026, beating the $0.78 consensus estimate and extending its streak of earnings beats to five consecutive quarters. Disciplined cost management drove the result, with adjusted SG&A falling to $808 million from $823 million a year earlier despite a soft top line.

Revenue came in at $2.01 billion, missing the $2.04 billion estimate and rising just 0.5% year over year. Comparable store sales declined 1.2% for the full quarter: sales fell in the low-single-digit range during the first eight weeks before turning positive in the final four weeks on improved transaction volumes, according to CEO Shane O'Kelly.

The Pro channel delivered low-single-digit sales growth throughout the quarter with stronger performance from Main Street Pro. The DIY channel declined in the low-single-digit range for the quarter, recovering from negative mid-single-digit levels at the start of the period. Those diverging trends matter for investors gauging how durable the sales recovery is heading into the fourth quarter.

Free cash flow guidance was raised to roughly $150 million from roughly $100 million, and the company reported more than $100 million of free cash flow generated year-to-date, compared to negative $277 million in the same period a year earlier. Full-year adjusted EPS guidance was narrowed to $2.75 to $3.10.

Restructuring charges of $42 million in the quarter and an ongoing material weakness remediation effort remain active risks investors will want to monitor. The company still plans 30 to 35 new store openings and 15 to 20 market hub openings for the full year. A quarterly dividend of $0.25 per share was declared on October 26, 2026, payable January 22, 2027, to shareholders of record as of January 8, 2027.