Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
GPC reported Q1 2026 revenue of $6.26B (+6.8% YoY) driven by top-line growth, but net income declined 3.0% to $188.5M as SG&A expenses surged 8.6%, compressing profitability despite a modest gross margin improvement.
Revenue
$6.26B
+6.80% YoY
EPS (Diluted)
$1.37
-2.14% YoY
Gross Margin
37.3%
+0.3 pts YoY
Source: SEC XBRL
Genuine Parts (GPC) reported Q1 FY2026 revenue of $6.26B, up 6.8% year over year. Operating cash flow was $63.92M. GPC's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 1 beat
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 2.15 | 2.10 | Beat +2.6% |
| Mar 2026This filing | 1.77 | 1.78 | Miss -0.5% |
| Dec 2025 | 1.55 | 1.84 | Miss -15.6% |
| Sep 2025 | 1.98 | 2.01 | Miss -1.6% |
Adjusted (non-GAAP) EPS of $1.77 versus the $1.78 analyst consensus — a -0.5% miss for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $1.37.
Compiled by AI from this SEC filing
Revenue grew 6.8% YoY to $6.26B, but SG&A expenses rose faster at 8.6% YoY to $1.86B, indicating that operating leverage is not being achieved and cost discipline remains a challenge heading into the rest of 2026.
Source: 10-Q Income Statement Data
Gross margin improved modestly by approximately 28 basis points to 37.33% from 37.06% in the prior year period, suggesting some pricing power or favorable product mix, though the improvement was insufficient to offset higher operating expenses.
Source: 10-Q Income Statement & Key Ratios
Net income fell 3.0% YoY to $188.5M, with diluted EPS declining from $1.40 to $1.37, reflecting the impact of elevated SG&A costs that more than offset gross profit growth of $165.3M (+7.6% YoY).
Source: 10-Q Income Statement Data
Operating cash flow improved dramatically to $63.9M from -$40.8M in Q1 2025, a 256.6% YoY improvement, suggesting better working capital management even as the business continues to invest in growth.
Source: 10-Q Cash Flow Statement
Current liabilities grew 12.1% YoY to $9.96B, outpacing current asset growth of 6.6% to $10.88B, resulting in a current ratio of just 1.09, indicating tighter near-term liquidity compared to the prior year.
Source: 10-Q Balance Sheet Data
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
SG&A expenses grew 8.6% YoY to $1.86B, significantly outpacing revenue growth of 6.8%. This cost creep is compressing operating margins and contributing to a 3.0% decline in net income despite healthy top-line expansion. Sustained SG&A inflation could further erode profitability if revenue growth moderates.
Source: 10-Q Income Statement Data
The current ratio stands at just 1.09, with current liabilities of $9.96B growing 12.1% YoY versus current asset growth of only 6.6%. This narrow liquidity buffer leaves limited room to absorb unexpected cash demands or economic disruptions without accessing credit facilities.
Source: 10-Q Balance Sheet Data
ROE of 4.21% and ROA of 0.90% are relatively low, suggesting the company is generating modest returns on its capital base of $20.98B in total assets. This may reflect integration costs, competitive pricing pressures, or inefficient capital deployment across its distribution network.
Source: 10-Q Key Ratios
Depreciation and amortization increased 13.5% YoY to $131.0M, indicating ongoing capital investment and potentially acquisition-related amortization. While this is a non-cash charge, it signals a growing fixed cost structure that could weigh on reported earnings.
Source: 10-Q Cash Flow Statement
While long-term debt declined 7.9% YoY to $3.48B, financing cash flow dropped 55.9% YoY to $56.7M, suggesting reduced access to or reliance on external financing. Combined with dividend payments of $141.7M (+5.5% YoY), capital allocation flexibility may be constrained.
Source: 10-Q Balance Sheet & Cash Flow Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 6.26 $B | 5.87 $B | +6.80% |
Cost of Revenue $B | 3.93 $B | 3.69 $B | +6.33% |
Gross Profit $B | 2.34 $B | 2.17 $B | +7.60% |
Net Income $M | 188.54 $M | 194.39 $M | -3.01% |
EPS (Basic) $ | 1.37 $ | 1.40 $ | -2.14% |
EPS (Diluted) $ | 1.37 $ | 1.40 $ | -2.14% |
SG&A Expense $B | 1.86 $B | 1.71 $B | +8.61% |
Answers draw on this SEC filing and the data on this page
In Q2 FY2026, GPC increased revenue 6.0% to $6.5B and expanded gross margin modestly, but GAAP net income declined 10.7% to $227.6M as SG&A, restructuring, separation, and other costs rose faster than sales. Source: 10-Q Item 2 MD&A, p.21
GPC's FY2025 revenue grew 3.5% to $24.3B, but net income collapsed 92.7% to $65.9M, driven by a sharp rise in SG&A expenses and elevated debt, signaling significant profitability pressure despite modest top-line growth.