O'Reilly Automotive Inc.

ORLY
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$4.6B
Q1 2026 · +8% YoY · Beat consensus by 9%
TTM ROIC
33%
FY2024 · NOPAT / Economic Invested Capital (Net Debt + Adjusted Equity, adding back cumulative buybacks) · WACC ~7.5% · Moat spread +25pp

Financial Snapshot

ticker: ORLY step: 04 generated: 2026-05-12 source: quick-research

O'Reilly Automotive, Inc. (ORLY) — Financial Snapshot

(Note: ORLY executed a 15-for-1 stock split in June 2025; FY24 + FY25 per-share metrics post-split adjusted.)

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY (FY25)
Revenue $15.81B $16.71B ~$17.8B +6.5%
Comparable Sales +7.9% +2.9% ~+5% recovery
Gross Margin 51.1% 51.2% ~51.0% flat
Operating Margin 20.5% 19.8% ~20.0% flat
Net Income ~$2.35B ~$2.39B ~$2.65B +11%
Diluted EPS (post-split adj) $2.55 $2.66 $3.00 (estimated) +13%

Q1 2026 Results

Metric Q1 2026
Revenue $4.56B
Comparable Store Sales +8.1%
Operating Income $842M (+14%)
Diluted EPS +16% YoY
Professional DIFM Growth double-digit
DIY Growth mid-single digit

FY2026 Guidance (Updated)

Metric 2026 Guide
Revenue $18.7–19.0B (+5–7%)
Comparable Store Sales mid-single digit
Diluted EPS $3.15–3.25
Net New Store Openings 225–235 (vs. 200–210 in 2025)
Free Cash Flow $2.5–2.8B (estimated)

Cash Flow & Capital Allocation (FY2025)

Metric Value
Operating Cash Flow ~$3.0B
Capital Expenditures ~$0.9B
Free Cash Flow ~$2.0–2.4B
Share Repurchases ~$2.5–3.0B (aggressive buyback program)
Dividend NONE (buyback-only return)
Cash & Marketable Securities ~$0.3B
Total Debt ~$5.8B
Net Debt / EBITDA ~1.0x

Key Ratios (approximate)

  • P/E: ~33x (FY26E EPS midpoint) | EV/EBITDA: ~22x | FCF Yield: ~3%
  • Revenue Growth (FY25): +6.5%
  • Same-Store Sales Growth: Q1 2026 +8.1% (industry-leading)
  • Operating Margin: ~20% (best-in-class)
  • ROIC: ~40%+ (high asset turnover + capital efficiency)
  • Dividend: None (Capital return through buybacks only)
  • Net Debt / EBITDA: ~1.0x

Growth Profile

FY25 / Q1 2026 confirmed O'Reilly's industry-leading execution:

  • Revenue +6.5% to $17.8B
  • Q1 2026 comp sales +8.1% (substantial outperformance vs. AAP weakness + AZO mid-single-digit)
  • Professional DIFM double-digit growth
  • DIY mid-single-digit growth
  • 14% operating income growth

The 2026 setup:

  • $18.7–19B revenue + +13% EPS growth at midpoint
  • 225-235 net new stores (~3.6% unit growth)
  • International expansion (Mexico Vesta + Canada) ramping
  • Aggressive buyback continues; capital return entirely through repurchases

The structural thesis remains intact: aging vehicle fleet + dual-market execution + share gains from struggling competitors (AAP) = multi-year mid-single-digit comp + 13–15% EPS growth.

Forward Estimates

FY2026 Guide:

  • Revenue: $18.7–19.0B
  • Diluted EPS: $3.15–3.25 (~+13%)
  • Comp Sales: mid-single-digit

Bull case: Comp sales sustained at +7–8% on AAP share donation + DIFM acceleration; international expansion accelerates; multiple expands to 35x P/E; stock could reach $120+. Bear case: DIY softens further; tariffs compress gross margin; competitor AutoZone DIFM push successful; multiple compresses to 28x P/E. Consensus targets $115–125 vs. trading ~$100–110 (~10–20% implied upside).

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $ORLY.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/orly/financials/md · → thesis · → memo