O'Reilly Automotive, Inc.

Second-quarter sales increased $367 million, driven by 6% comparable store sales growth and a $100 million non-comp contribution from newly opened stores. Gross margin was 51.4%, unchanged from Q2 2025, and diluted EPS rose 10% year over year in the quarter; for the first half, diluted EPS grew 13%. Same SKU inflation was 5.5% in the quarter. For 2026, management raised total revenue guidance to $18.9 billion to $19.2 billion, full-year comparable store sales guidance to 4% to 6%, and full-year diluted EPS guidance to $3.20 to $3.30. Gross margin guidance remains 51.5% to 52%, SG&A per store guidance was tightened to 3.5% to 4%, operating profit guidance was reiterated at 19.3% to 19.8%, free cash flow guidance remains $1.8 billion to $2.1 billion, and capital expenditures are still expected at $1.3 billion to $1.4 billion. The company opened 110 net new stores year to date and expects 225 to 235 net new stores in 2026.

Brad Beckham emphasized that the quarter reflected continued market-share gains and execution across both DIY and professional channels, and he repeatedly framed O'Reilly as a long-term consolidator in a fragmented market. He was explicit that there is no strategic need to pursue a large competitor acquisition, saying the company remains focused on its existing playbook: store growth, inventory, service, delivery, and organic share gains. His tone was confident but cautious on the back half of the year, especially around weather, fuel prices, and consumer volatility.

Jeremy Adam Fletcher highlighted that gross margin held at 51.4% and that the company is maintaining full-year gross margin guidance of 51.5% to 52%, with year-to-date gross margin at 51.5% and operating margin up 21 basis points in the first half. He also noted SG&A per store grew 4.8% in Q2, but the company tightened full-year SG&A per store growth to 3.5% to 4% and reiterated operating profit guidance of 19.3% to 19.8%. On capital and liquidity, he said free cash flow was $1.5 billion in the first half versus $904 million last year, adjusted debt-to-EBITDAR was 2.17x, and the company repurchased 17 million shares in Q2 for $1.5 billion, bringing year-to-date repurchases to 34 million shares for $3.1 billion.

Analysts pressed management on whether speculation about a competitor acquisition signaled a change in O'Reilly's competitive outlook. Beckham rejected that, saying the company does not comment on rumors and that there is 'nothing structural or fundamentally different' about its plan to keep taking share organically. Questions also focused on DIY demand, gas prices, and whether easing inflation could boost unit growth; management said the business remains healthy, July started strong, but they are cautious about back-half volatility and prefer not to over-interpret short-term weather or fuel-price moves.