O`Reilly Automotive Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.45%.
Did ORLY Beat Earnings? Q3 2025 Results
O'Reilly Automotive posted a clean beat on both the top and bottom lines in the third quarter ended September 30, 2025, as the auto parts retailer reported diluted EPS of $0.85, ahead of the $0.83 consensus estimate by 2.36%, on revenue of $4.71 billion that edged past expectations by 0.31% and grew 7.8% year over year. The standout driver was comparable store sales growth of 5.6%, reflecting market share gains on both the do-it-yourself and professional sides of the business, with revenue nearly evenly split between those two customer segments. Gross margin ticked up to 51.9% from 51.6%, while operating margin improved to 20.7%, underscoring steady operational leverage. The company continued its aggressive expansion, ending the quarter with 6,538 locations, and repurchased $420 million in shares during the period. Looking ahead, O'Reilly raised its full-year comparable store sales guidance to 4.0% to 5.0% and set total revenue guidance of $17.60 billion to $17.80 billion, with diluted EPS expected between $2.90 and $3.00, signaling continued confidence in the strength of the automotive aftermarket.
- 5.6% comparable store sales growth on top of 1.5% in prior year
- Market share gains on both DIY and professional sides of the business
- Gross margin expansion to 51.9% from 51.6%
- Operating margin improvement to 20.7% from 20.5%
- 12% increase in diluted EPS driven by earnings growth and share repurchases
“We are pleased to report another quarter of solid performance and profitable growth, highlighted by a 5.6% increase in comparable store sales and a 12% increase in diluted earnings per share for the third quarter. Our Team continues to execute our proven business model at a very high level, generating robust sales growth by delivering share gains on both sides of our business. Team O'Reilly's commitment to providing unparalleled service to our customers drove our strong results, and I would like to thank each of our over 93,000 Team Members for their unrelenting hard work and dedication.”
O'Reilly Automotive CEO, on the earnings call
Forward Guidance & Outlook
O'Reilly raised its full-year 2025 comparable store sales guidance to 4.0%–5.0%. Full-year total revenue is expected in the range of $17.6 billion to $17.8 billion. Diluted EPS guidance is $2.90 to $3.00. The company expects 200 to 210 net new store openings. Operating cash flow guidance was revised to $2.6 billion to $3.0 billion due to accelerated payment of renewable energy tax credits originally planned for early 2026. Capital expenditures are guided at $1.1 billion to $1.2 billion and free cash flow at $1.5 billion to $1.8 billion. The effective income tax rate was revised down from 22.3% to 21.6% reflecting incremental benefits from the accelerated tax credit payments. Gross profit margin is expected at 51.2% to 51.7% and operating income margin at 19.2% to 19.7%.
ORLY YoY Financials
ORLY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.