Q1 26 EPS
$0.77
BEAT +75.64%
Est. $0.44
Q1 26 Revenue
$2.61B
BEAT +1.52%
Est. $2.57B
vs S&P Since Q1 26
+12.4%
BEATING MARKET
AAP +11.1% vs S&P -1.3%
Market Reaction
Did AAP Beat Earnings? Q1 2026 Results
Advance Auto Parts turned in a sharply stronger-than-expected first quarter of fiscal 2026, posting adjusted diluted EPS of $0.77 against a consensus estimate of $0.44, a beat of 75.64%, while revenue of $2.61 billion edged ahead of the $2.57 billion… Read more Advance Auto Parts turned in a sharply stronger-than-expected first quarter of fiscal 2026, posting adjusted diluted EPS of $0.77 against a consensus estimate of $0.44, a beat of 75.64%, while revenue of $2.61 billion edged ahead of the $2.57 billion forecast and rose 1.2% year over year. The headline driver was the cycling of significant restructuring headwinds that had weighed on the year-ago period, with comparable store sales advancing 3.5%, led by mid-single-digit growth in the Professional installer channel and low-single-digit gains in the DIY segment. Gross margin expanded 220 basis points to 45.1%, and adjusted operating income swung to $99 million from an adjusted loss of $8 million a year ago, a turnaround that directly addresses the margin concerns analysts had flagged heading into the print. Free cash flow, while still negative at $75 million, improved substantially from negative $198 million in Q1 2025. The company reaffirmed its full-year outlook, guiding for net sales of $8.49 billion to $8.58 billion and adjusted diluted EPS of $2.40 to $3.10.
Key Takeaways
- • Comparable store sales growth of 3.5%, the strongest in five years
- • Mid-single-digit growth in Professional installer (Pro) channel
- • Low-single-digit growth in DIY channel
- • Sequential improvement in transactions driven by customer service focus
- • Product margin expansion supported by merchandising initiatives
- • Cycling of approximately 90 basis points of atypical margin headwind from 2024 Restructuring Plan store closures
- • Cycling of approximately $37 million in SG&A expenses from prior-year store closures
- • Adjusted operating income margin expanded 410 bps year-over-year to 3.8%
AAP Forward Guidance & Outlook
Advance Auto Parts reaffirmed its full-year 2026 guidance: net sales of $8,485 million to $8,575 million, comparable store sales growth of 1.0% to 2.0% (on an adjusted 52-week basis), adjusted operating income margin of 3.80% to 4.50%, adjusted diluted EPS of $2.40 to $3.10, capital expenditures of approximately $300 million, and free cash flow of approximately $100 million. The company expects pre-tax interest expense of approximately $210 million and pre-tax interest income of approximately $80 million. Store openings are planned at 40–45 and market hub openings at 10–15 for the year.
AAP YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
“2026 is off to a solid start and we remain on track to execute our strategic priorities for the year. During the quarter, comparable sales grew by 3.5% including mid-single-digit growth in Pro and low-single-digit growth in DIY. These results were driven by a sequential improvement in transactions reflecting the unwavering focus of our team to deliver strong customer service. I thank the Advance team for their hard work in the quarter and their commitment to strong operational execution, which is driving stronger asset productivity and margin expansion.”
— Shane O'Kelly, Q1 2026 Earnings Press Release
AAP Earnings Trends
AAP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
AAP EPS Trend
Earnings per share: estimate vs actual
AAP Revenue Trend
Quarterly revenue: estimate vs actual
AAP Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $0.44 | $0.77 | +75.64% | $2.61B | +1.52% |
| Q4 25 BEAT FY | $0.41 | $0.86 | +109.30% | $1.97B | +1.10% |
| FY Full Year | — | $2.26 | — | $8.60B | — |
| Q3 25 BEAT | $0.75 | $0.92 | +23.41% | $2.04B | +0.65% |
| Q2 25 BEAT | $0.58 | $0.69 | +18.29% | $2.01B | +1.69% |
| Q3 24 MISS | $0.54 | $-0.04 | -107.44% | $2.15B | -19.59% |