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
O’Reilly Automotive sustained its growth trajectory in Q2 FY2026, as both revenue and net income advanced at a solid pace. Gross margin held steady, but operating expenses grew slightly faster, leading to a marginal compression in operating margin. Share repurchases accelerated sharply, with the company deploying over $1.5 billion in the quarter to buy back stock, contributing to a faster EPS growth rate. The company's cash flow generation strengthened, providing ample liquidity for its capital allocation strategy.
Revenue
$4.89B
+8.11% YoY
EPS (Diluted)
$0.86
+10.26% YoY
Gross Margin
51.4%
+0.0 pts YoY
Operating Income
$985.75M
+7.79% YoY
Source: SEC XBRL
O Reilly Automotive (ORLY) reported Q2 FY2026 revenue of $4.89B, up 8.1% year over year. Operating margin was 20.2%, essentially unchanged from a year earlier. ORLY's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.86 | 0.88 | Miss -2.3% |
| Mar 2026 | 0.72 | 0.71 | Beat +1.7% |
| Dec 2025 | 0.71 | 0.74 | Miss -4.0% |
| Sep 2025 | 0.85 | 0.85 | Beat +0.0% |
Reported EPS of $0.86 versus the $0.88 analyst consensus — a -2.3% miss for Jun 2026.
Compiled by AI from 10-Q Item 2 of this filing
Share repurchases totaled $2.43 billion in the first half of 2026, a 106.8% increase year‑over‑year, reducing diluted shares outstanding by 3.4% for the six-month period.
Source: 10-Q Item 2 MD&A (Condensed Consolidated Statements of Shareholders' Equity)
The company issued $850 million of 5.100% Senior Notes due 2036 in March 2026, bringing total debt to $7.0 billion, partly to fund the accelerated buyback program.
Source: 10-Q Item 2 MD&A (Note 7)
Confirmed obligations under supplier finance programs stood at $5.1 billion, underscoring the company’s extensive use of third‑party payables and working capital management.
Source: 10-Q Item 2 MD&A (Note 6)
Gross margin was virtually unchanged at 51.4%, as cost of goods sold increased in line with revenue, though SG&A growth of 8.4% slightly outpaced the 8.1% revenue increase.
Source: 10-Q Item 2 MD&A (Condensed Consolidated Statements of Income)
Compiled by AI from this SEC filing · 1 high, 2 medium, 2 low
As of June 30, 2026, shareholders’ equity was negative $1.84 billion, driven by cumulative share repurchases far exceeding retained earnings. Total debt of $7.0 billion results in a negative tangible net worth, heightening financial risk if cash flows weaken.
Source: 10-Q Balance Sheet (XBRL)
With $1.35 billion in commercial paper and a $2.25 billion revolving credit facility tied to variable rates, a significant increase in benchmark interest rates could raise interest expense and pressure profitability.
Source: 10-Q Item 2 MD&A (Note 7)
The company spent $2.43 billion on buybacks in the first half of 2026, nearly double net income. Sustaining this level may necessitate additional debt, further straining the already negative equity position.
Source: 10-Q Cash Flow Statement (XBRL)
Inventory of $5.97 billion, a critical asset, faces obsolescence risk as vehicle technology shifts toward electrification, potentially reducing demand for certain traditional auto parts.
Source: 10-Q Balance Sheet (XBRL)
Over $5.1 billion in accounts payable is tied to supplier finance programs. Disruption in these programs or deterioration of supplier relationships could lead to liquidity and inventory challenges.
Source: 10-Q Item 2 MD&A (Note 6)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.89 $B | 4.53 $B | +8.11% |
Cost of Revenue $B | 2.38 $B | 2.20 $B | +8.04% |
Gross Profit $B | 2.52 $B | 2.33 $B | +8.18% |
Operating Income $M | 985.75 $M | 914.47 $M | +7.79% |
Net Income $M | 715.06 $M | 668.60 $M | +6.95% |
EPS (Basic) $ | 0.87 $ | 0.78 $ | +11.54% |
EPS (Diluted) $ | 0.86 $ | 0.78 $ | +10.26% |
SG&A Expense $B | 1.53 $B | 1.41 $B | +8.42% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
O'Reilly Automotive (ORLY) delivered solid FY2025 results with revenue growing 6.4% to $17.8B and net income rising 6.3% to $2.5B, supported by stable margins and continued share buybacks, though operating cash flow declined 9.4% year-over-year.
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