Advance Auto Parts

AAP Q4 2025 Earnings

Reported Feb 13, 2026 at 6:33 AM ET · SEC Source

Q4 25 EPS

$0.86

BEAT +109.30%

Est. $0.41

Q4 25 Revenue

$1.97B

BEAT +1.10%

Est. $1.95B

vs S&P Since Q4 25

-7.2%

TRAILING MARKET

AAP +0.4% vs S&P +7.6%

Full Year 2025 Results

FY 25 EPS

$2.26

FY 25 Revenue

$8.60B

Market Reaction

Did AAP Beat Earnings? Q4 2025 Results

Advance Auto Parts signaled a meaningful turn in its multiyear recovery story when it reported fourth-quarter fiscal 2025 results, posting earnings of $0.86 per diluted share on revenue of $1.97 billion, with the quarter benefiting from a 53rd week t… Read more Advance Auto Parts signaled a meaningful turn in its multiyear recovery story when it reported fourth-quarter fiscal 2025 results, posting earnings of $0.86 per diluted share on revenue of $1.97 billion, with the quarter benefiting from a 53rd week that contributed roughly $132 million in net sales and approximately $0.08 to adjusted diluted EPS. The most consequential detail beneath the headline numbers was the company's return to positive comparable store sales, with Q4 comps rising 1.1% and full-year comps turning positive at 0.8% after three consecutive years of declines, a shift management attributed to operational savings from its sweeping footprint optimization, which included 522 net store closures during fiscal 2025. Full-year adjusted operating income margin expanded more than 200 basis points to 2.5%, reflecting improved product margins from strategic sourcing and the cycling of atypical restructuring charges. Looking ahead, management guided fiscal 2026 net sales of $8.49 billion to $8.58 billion, adjusted diluted EPS of $2.40 to $3.10, and free cash flow of approximately $100 million, with a unified distribution network consolidation viewed as a key operational catalyst for continued margin recovery.

Key Takeaways

  • Q4 comparable store sales growth of 1.1% with positive sales performance in the last eight weeks
  • Full year comparable sales returned to positive growth of 0.8% after three years of negative results
  • Adjusted operating income margin expanded by over 200 basis points year-over-year to 2.5%
  • Improvements in product margins from strategic sourcing initiatives
  • Operational savings from footprint optimization under the 2024 Restructuring Plan
  • Additional (53rd) week added approximately $132 million to net sales and $9 million to adjusted operating income
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AAP YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

“I am pleased with the progress achieved during 2025 and I want to thank our team members for their hard work. In 2025, we laid the foundation to build a better future for the Company. Our actions are delivering progress on operational goals and financial commitments to our shareholders. We returned to full year positive comparable sales growth following three years of negative results and expanded adjusted operating income margin by over 200-basis points, which were both in line with our full year 2025 guidance range.”

— Shane O'Kelly, Q4 2025 Earnings Press Release