Shares rise after earnings and revenue top forecasts
Genuine Parts Company (NYSE:GPC) reported stronger-than-expected second-quarter results on Tuesday, exceeding Wall Street estimates for both earnings and revenue while reaffirming its full-year guidance.
Investors responded positively to the results, sending shares of the automotive and industrial parts distributor up 3.34% in pre-market trading.
Adjusted earnings came in at $2.15 per share, ahead of the analyst consensus of $2.07. Revenue reached $6.5 billion, surpassing expectations of $6.44 billion and increasing 6.0% from $6.2 billion in the same quarter last year.
Sales growth supported by acquisitions and currency
The company’s revenue growth was driven by a 3.4% increase in comparable sales, a 1.4% favourable foreign exchange impact and a 1.2% contribution from acquisitions.
Genuine Parts reaffirmed its full-year adjusted earnings per share guidance of $7.50 to $8.00.
“The GPC team delivered solid second quarter results, driven by continued sales growth and disciplined execution across our businesses,” said Will Stengel, Chairman and Chief Executive Officer.
Industrial business leads quarterly performance
The Industrial segment delivered the strongest growth during the quarter, with sales rising 7.1% year over year to $2.4 billion.
International Automotive revenue increased 8.2% to $1.6 billion, while North America Automotive sales advanced 3.8% to $2.5 billion.
Management updated its regional outlook, narrowing its North America Automotive sales growth forecast to 2.5% to 4.5% from the previous range of 3% to 5%.
At the same time, the company raised its International Automotive sales growth outlook to between 5% and 8%, compared with its earlier forecast of 3% to 6%.
Cash flow remains strong
During the first six months of 2026, Genuine Parts generated operating cash flow of $464 million and free cash flow of $259 million.
The company also maintained its full-year guidance for total sales growth of 3% to 5.5% and free cash flow of $550 million to $700 million.
Genuine Parts Company stock price
