AI Takeaway
O'Reilly Automotive delivered strong Q1 FY2026 results with revenue up 10.2% YoY to $4.56B, operating income surging 13.5% to $841.6M, and operating cash flow jumping 36.8% to $1.03B, driven by continued same-store sales growth and disciplined cost management.
Revenue
$4.56B
++10.24% YoY
EPS (Basic)
$0.72
++14.29% YoY
Gross Margin
51.5%
++0.19% YoY
Operating Income
$841.61M
++13.51% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 10.2% YoY to $4.56B in Q1 FY2026, up from $4.14B in the prior-year period, reflecting continued strength in both DIY and professional (DIFM) customer segments as demand for auto parts remains resilient.
Source: Source: 10-Q Income Statement
Gross margin improved modestly by approximately 19 basis points to 51.47%, demonstrating O'Reilly's ability to manage product costs and maintain pricing power even as cost of revenue rose 9.8% YoY to $2.21B.
Source: Source: 10-Q Income Statement & Key Ratios
Operating income grew 13.5% YoY to $841.6M, outpacing revenue growth, as SG&A expenses rose a more modest 9.1% YoY to $1.51B, resulting in operating margin expansion of approximately 53 basis points to 18.45%.
Source: Source: 10-Q Income Statement
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Upgrade to unlockO'Reilly carries negative stockholders' equity of -$1.07B and long-term debt of $6.20B, reflecting its aggressive share buyback strategy financed largely by debt. While the equity deficit improved 21.4% YoY, the company's balance sheet remains structurally leveraged, which could constrain financial flexibility in an economic downturn or rising interest rate environment.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $0.72 versus the $0.71 analyst consensus — a +1.7% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.56B | $4.14B | +10.24% |
Cost of Revenue | $2.21B | $2.02B | +9.82% |
Gross Profit | $2.35B | $2.12B | +10.64% |
Operating Income | $841.61M | $741.47M | +13.51% |
Net Income | $604.18M | $538.49M | +12.20% |
EPS (Basic) | $0.72 | $0.63 | +14.29% |
EPS (Diluted) | $0.72 | $0.62 | +16.13% |
SG&A Expense | $1.51B | $1.38B | +9.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $16.94B | $15.29B | +10.74% |
Current Assets | $6.97B | $6.03B | +15.55% |
Current Liabilities | $9.22B | $8.51B | +8.39% |
Stockholders' Equity | $-1.07B | $-1.36B | +21.39% |
Cash & Equivalents | $252.63M | $191.25M | +32.10% |
Long-Term Debt | $6.2B | $5.65B | +9.62% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.03B | $755.12M | +36.79% |
Investing Cash Flow | $-244.66M | $-285M | +14.16% |
Financing Cash Flow | $-729.04M | $-409.45M | -78.05% |
Share Buybacks | $922.95M | $559.43M | +64.98% |
D&A | $135.36M | $122.22M | +10.75% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 51.5% | 51.3% | +0.19% |
Operating Margin | 18.5% | 17.9% | +0.53% |
Net Margin | 13.2% | — | — |
ROE | -56.6% | — | — |
ROA | 3.6% | — | — |
Current Ratio | $0.755 | — | — |
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O'Reilly Automotive reported Q1 FY2026 diluted EPS of $0.72, up 16.1% YoY from $0.62, and revenue of $4.56B, up 10.2% YoY. The filing does not include consensus estimate comparisons, but the double-digit growth across revenue, operating income, and EPS reflects a strong quarter operationally.
The key takeaways from O'Reilly's Q1 FY2026 results include 10.2% revenue growth to $4.56B, operating margin expansion to 18.45%, and a 36.8% surge in operating cash flow to $1.03B. The company also accelerated share buybacks by 65% YoY to $922.9M, reflecting strong confidence in its business outlook.
O'Reilly's revenue grew 10.2% YoY to $4.56B in Q1 FY2026, up from $4.14B in Q1 FY2025, driven by continued demand from both DIY and professional auto parts customers. Gross profit grew even faster at 10.6% YoY to $2.35B, reflecting stable pricing power and modest cost management improvements.
O'Reilly's operational health is strong, with $1.03B in operating cash flow and an 18.45% operating margin, but its balance sheet is highly leveraged with $6.20B in long-term debt and negative stockholders' equity of -$1.07B due to its aggressive buyback strategy. The current ratio of 0.755 is below 1.0, though this is typical for the company's business model given its consistent cash generation.
O'Reilly's negative stockholders' equity of -$1.07B is the result of its long-running share repurchase program, which has returned billions of dollars to shareholders over the years, funded largely by debt and operating cash flows. In Q1 FY2026 alone, the company repurchased $922.9M in shares, and while this reduces book equity, the company's strong operating cash flow of $1.03B in the quarter demonstrates it is not in financial distress.