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ORLY · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
The compounding machine as usual — sales +8.1% to $4.9B on 6.0% comps, gross margin steady at 51.4%, operating income +7.8% and EPS +10% to $0.86 as buybacks shrank the share count 3.4%; the only creep is interest expense (+22%) funding those repurchases.
Net Income
$715M
up 7.0% y/y
Sales
$4,892M
up 8.1% y/y
Operating Income
$986M
up 7.8% y/y
Gross Profit
$2,517M
up 8.2% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Sales | $4,892 · +8.1% · comps +6.0% |
| COGS incl. Distribution | $2,375 · +8.0% |
| Gross Profit | $2,517 · +8.2% · 51.4% margin |
| SG&A | $1,531 · +8.4% |
| Operating Income | $986 · +7.8% · 20.2% margin |
| Interest & Other Income | $8 |
| Interest Expense | $70 · +21.9% |
| Pretax Income | $924 · +7.3% |
| Income Taxes | $209 · +8.4% · 22.6% rate |
| Net Income | $715 · +7.0% · 14.6% margin · EPS $0.86 |
Verdict: the compounding machine as usual — sales +8.1% to $4.9B on 6.0% comps, gross margin steady at 51.4%, operating income +7.8% and EPS +10% to $0.86 as buybacks shrank the share count 3.4%; the only creep is interest expense (+22%) funding those repurchases.
YTD: $2.4B of buybacks against $2.0B operating cash flow; shares outstanding down to 825M. Shareholders' equity is negative by design (buyback-financed balance sheet).
Source and notation
Source: O'Reilly Automotive press release 8-K EX-99.1 (SEC EDGAR).
Open as an image: ORLY, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
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Chart: “ORLY Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/orly/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/orly/q2-2026"><img src="https://whoreportstoday.com/t/orly/q2-2026/sankey.png" alt="ORLY Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/orly/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/orly/q2-2026">ORLY Q2 2026 earnings chart (Who Reports Today)</a>
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- Buybacks outran cash generation YTD ($2.4B repurchased vs $2.0B operating cash flow) — the balance sheet runs a shareholders' DEFICIT on purpose, financed by cheap debt.
- Interest expense +21.9% ($70M) is the cost of that model — the only expense line growing faster than sales.
- Comparable sales +6.0% against a soft prior-year base; both DIY and professional held up — auto-parts demand is recession-agnostic while the car fleet ages.
- Gross margin 51.4% (vs 51.4%) — tariff-era pricing passed through without margin damage.
- EPS growth (+10%) doubles net-income growth (+7%) — the share count fell 3.4% year over year; that's the O'Reilly formula.
What distorts the picture in this report and what to watch beyond the headlines.
ORLY — O'Reilly Automotive, Inc. operates as an automotive aftermarket parts provider, offering replacement parts, tools, and accessories for cars and trucks.
It is based in Missouri and runs a large network of retail and commercial stores in the U.S.
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