O'Reilly Q4 Earnings Miss Expectations, Revenues Rise Y/Y

O’Reilly Automotive, Inc. ORLY reported fourth-quarter 2025 adjusted earnings per share (EPS) of 71 cents, which missed the Zacks Consensus Estimate of 72 cents. The bottom line increased from 66 cents in the prior-year quarter.

The automotive parts retailer registered quarterly revenues of $4.41 billion, which surpassed the Zacks Consensus Estimate of $4.40 billion. The top line also increased 7.8% year over year.

During the quarter, comparable store sales grew 5.6% and the company opened 47 stores in the United States, Mexico and Canada. The total store count was 6,585 as of Dec. 31, 2025.

O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise

O'Reilly Automotive, Inc. price-consensus-eps-surprise-chart | O'Reilly Automotive, Inc. Quote

ORLY’s Q4 Financials, Share Repurchase & Costs

In the reported quarter, selling, general and administrative expenses rose 7% year over year to $1.46 billion. Operating income increased 12% year over year to $829 million. Net income was $605 million, up from $551 million in the year-ago quarter.

During the reported quarter, O’Reilly repurchased 5.2 million shares for $500 million at an average price of $96.69 per share. From the end of the fourth quarter until Feb. 04, 2026, the company repurchased an additional 1.4 million shares of common stock for a total investment of $134 million at an average price of $93.86 per share. As of Feb. 04, ORLY had nearly $2.26 billion remaining under the current share repurchase authorization.

As of Dec. 31, 2025, it had cash and cash equivalents of $193.8 million, up from $130.2 million recorded as of Dec. 31, 2024. Its long-term debt was $6.02 billion, up from $5.52 billion as of Dec. 31, 2024.

During the reported quarter, O’Reilly generated $633.4 million in cash from operating activities compared with the year-ago period’s $624.5 million. Capital expenditures totaled $269 million compared with $290.5 million in the year-ago period. Free cash flow (FCF) was $362.2 million, up 9.5% year over year.

ORLY’s 2026 Outlook

For 2026, O’Reilly estimates total revenues to be in the range of $18.7-$19 billion compared with $17.8 billion in 2025. It expects EPS to be in the band of $3.10-$3.20 compared with $2.97 in 2025. Comparable store sales are estimated to grow 3-5% compared with 4.7% in 2025. The FCF is anticipated to be between $1.8 billion and $2.1 billion compared with $1.56 billion in 2025. Capital expenditure is expected to be between $1.3 billion and $1.4 billion compared with $1.17 billion in 2025. The company intends to open 225-235 stores this year.

ORLY’s Zacks Rank & Key Picks

ORLY carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Ford Motor F, Modine Manufacturing MOD and PHINIA Inc. PHIN, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for F’s 2025 sales implies year-over-year growth of 0.3%. The EPS estimate for 2025 and 2026 has improved 7 cents and 11 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 17.2% and 14.3%, respectively. The EPS estimate for fiscal 2026 has improved a penny in the past 60 days and the same for fiscal 2027 has increased 13 cents in the past seven days.

The Zacks Consensus Estimate for PHIN’s 2025 sales and earnings implies year-over-year growth of 1.1% and 33.4%, respectively. The EPS estimate for 2025 and 2026 has improved 47 cents and 66 cents, respectively, in the past 60 days.

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This article originally published on Zacks Investment Research (zacks.com).

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