O`Reilly Automotive Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.06%.
Did ORLY Beat Earnings? Q4 2025 Results
O'Reilly Automotive posted a mixed fourth quarter for fiscal 2025, delivering a narrow revenue beat while falling slightly short on the bottom line as elevated operating costs weighed on earnings. The auto parts retailer reported Q4 revenue of $4.41 billion, up 7.8% year over year and edging past the $4.39 billion consensus estimate by 0.47%, yet diluted EPS of $0.71 missed the $0.72 analyst expectation by 1.89%, with CEO Brad Beckham pointing to higher-than-anticipated team member health care and casualty claim costs as the primary culprit behind the shortfall. Despite that pressure, gross margin expanded to 51.8% from 51.3% a year ago, and aggressive share buybacks, totaling $2.10 billion for the full year, helped lift full-year diluted EPS 10% to $2.97. Short interest in the stock has recently declined sharply, suggesting some investors are growing more constructive on the name. Looking ahead, management guided fiscal 2026 revenue of $18.70 billion to $19.00 billion and diluted EPS of $3.10 to $3.20, alongside plans for 225 to 235 net new store openings.
- 5.6% comparable store sales growth in Q4 driven by share gains on both DIY and professional sides
- Gross margin expansion to 51.8% from 51.3% year over year
- Share repurchase program reducing diluted share count from 870 million to 848 million shares year over year in Q4
- 207 net new store openings during 2025
- Professional service provider sales growing faster than DIY segment
“I would like to thank our over 93,000 Team Members for their tremendous hard work and commitment while delivering a strong finish to 2025. Our Team continues to drive share gains on both sides of our business through excellent customer service and industry-leading parts availability, resulting in our fourth quarter comparable store sales growth of 5.6%. Our top-line results, coupled with strong gross margin performance, drove a 12% increase in operating profit dollars and a 13% increase in diluted earnings per share for the fourth quarter. We are pleased with our Team's ability to capitalize on the investments we are making in our business and manage operating costs to provide exceptional customer service and capture market share; however, SG&A expenses again exceeded our expectations in the fourth quarter due to pressure from heightened inflation in team member health care and casualty claim costs. We remain intensely focused on managing expenses and mitigating these cost pressures but will always prioritize delivering the service levels and parts availability in our stores that are critical to winning share and driving industry-leading results.”
O'Reilly Automotive CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, O'Reilly guided: 225 to 235 net new store openings; comparable store sales growth of 3.0% to 5.0%; total revenue of $18.7 billion to $19.0 billion; gross profit margin of 51.5% to 52.0%; operating income margin of 19.2% to 19.7%; effective income tax rate of 22.6%; diluted EPS of $3.10 to $3.20; net cash provided by operating activities of $3.1 billion to $3.5 billion; capital expenditures of $1.3 billion to $1.4 billion; and free cash flow of $1.8 billion to $2.1 billion.
ORLY YoY Financials
ORLY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.