Advance Auto Parts (AAP) Q2 2026 Earnings
Tariff refunds contributed approximately $0.31 to Q2 2026 adjusted diluted EPS; Non-GAAP adjustments exclude $4 million in restructuring and other related expenses, $6 million in impairments and write-downs, and $1 million in other items
How Did AAP Stock React to Q2 2026 Earnings?
S&P 500 over the same 30 days: +1.41%.
Did AAP Beat Earnings? Q2 2026 Results
Yes. Advance Auto Parts reported Q2 2026 earnings of $1.03 a share on Aug 20, 2026, beating the $0.81 consensus estimate by 27.9%. Revenue was $2.0B against a $2.0B estimate.
Advance Auto Parts delivered a sharply mixed second quarter, posting adjusted diluted EPS of $1.03 against a consensus estimate of $0.81, a beat of 27.87% that extended the company's streak of topping consensus EPS estimates to four consecutive quarters, even as revenue of $2.00 billion fell just short of the $2.04 billion analysts had expected and edged down 0.5% year over year. The profitability outperformance was meaningfully shaped by $26.00 million in tariff refunds related to duties previously paid under IEEPA, which contributed approximately $0.31 to the quarter's adjusted EPS; even so, underlying merchandising execution drove adjusted operating income margin to expand over 250 basis points to 5.6%. The revenue shortfall traced to a weakening DIY channel, where tighter household budgets weighed on spending in the final weeks of the quarter, though the Professional channel held up with low-single-digit comparable sales growth. Heading into the second half, management raised adjusted diluted EPS guidance to $2.60 to $3.30 from $2.40 to $3.10, while reaffirming full-year net sales of $8.49 billion to $8.58 billion and free cash flow of approximately $100.00 million.
- Adjusted operating income margin expanded over 250 basis points year-over-year to 5.6%
- Product margin expansion supported by merchandising initiatives
- $26 million in IEEPA tariff refunds boosted Q2 2026 adjusted gross profit
- Low-single-digit growth in Pro channel in line with expectations
- Main Street Pro trends outpaced overall Pro trends
- DIY channel underperformed due to tighter household budgets, especially in last four weeks of quarter
- Comparable store sales decreased 0.5%
- Return to positive year-to-date free cash flow of $120 million, following two years of outflows
“During the second quarter, the Advance team maintained focus on executing our strategic initiatives to achieve solid profitability, while navigating a volatile demand environment and I thank the team for their hard work and commitment to serving our customers.”
Advance Auto Parts CEO, on the earnings call
What Is Advance Auto Parts's Outlook?
The company reaffirmed full-year 2026 guidance for net sales of $8,485–$8,575 million, comparable store sales growth of 1.0%–2.0%, adjusted operating income margin of 3.8%–4.5%, capital expenditures of approximately $300 million, and free cash flow of approximately $100 million. Adjusted diluted EPS guidance was revised upward to $2.60–$3.30 (from $2.40–$3.10) to reflect higher pre-tax interest income. Full year guidance includes pre-tax interest expense of approximately $210 million and pre-tax interest income of approximately $100 million. Store openings were revised to 30–35 (from 40–45) and market hub openings were revised to 15–20 (from 10–15). Guidance considers first-half performance including tariff refunds and revised second-half operating expectations.
AAP YoY Financials
| Metric | Q2 2026 | Q2 2025 | Year over year |
|---|---|---|---|
| Revenue | $2.0B | $2.0B | −0.5% |
| Gross Profit | $923.0M | $874.0M | +5.6% |
| Operating Income | $101.0M | $22.0M | +359.1% |
| Net Income | $55.0M | $15.0M | +266.7% |
When Does Advance Auto Parts Report Next?
Figures from SEC filings and company reports. Not investment advice.