Why O'Reilly (ORLY) Shares Are Sliding Today

What Happened?

Shares of auto parts and accessories retailer O’Reilly Automotive (NASDAQ:ORLY) fell 3.8% in the afternoon session after investors continued to sell shares following its recent quarterly earnings report, which contained a weak full-year guidance. 

The stock had already fallen significantly since the earnings announcement, which disappointed the market despite the company posting the fastest revenue growth among its peers. A key area of concern was a slowdown in the do-it-yourself segment, where inflationary pressures led to a drop in customer transactions. While the professional services side of the business showed strong growth, it was not enough to offset the softness in consumer sales. Broader industry issues also added to the worries, including a potential chip shortage stemming from U.S. trade restrictions with China, which threatened to slow vehicle production.

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What Is The Market Telling Us

O'Reilly’s shares are not very volatile and have only had 1 move greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 4.8% on the news that the company reported strong second-quarter 2025 financial results and raised its full-year outlook. The auto parts retailer announced a 4.1% increase in comparable store sales and an 11% rise in diluted earnings per share to $0.78 for the second quarter. Total revenue for the period grew 6% to $4.53 billion, while net income rose 7% to $669 million. Following the strong performance, O'Reilly raised its full-year 2025 guidance for comparable store sales. The positive report prompted favorable reactions from Wall Street analysts. For instance, UBS raised its price target on the stock to $115, and Wells Fargo increased its target to $105.

O'Reilly is up 14.5% since the beginning of the year, but at $90.63 per share, it is still trading 15.9% below its 52-week high of $107.82 from September 2025. Investors who bought $1,000 worth of O'Reilly’s shares 5 years ago would now be looking at an investment worth $3,027.

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