O’Reilly (ORLY) Q1 2026 EPS climbs 16% as comps rise 8.1%
Rhea-AI Filing Summary
O’Reilly Automotive reported record first quarter 2026 results with strong growth in sales and profitability. Sales rose 10% to $4.56 billion, driven by an 8.1% increase in comparable store sales across both professional and DIY customers.
Gross profit grew 11% to $2.35 billion, and operating income increased 14% to $842 million, lifting operating margin to 18.5% of sales. Net income rose 12% to $604 million, while diluted earnings per share climbed 16% to $0.72 from $0.62, helped by share repurchases.
Free cash flow for the quarter was $785.1 million, as net cash from operating activities reached $1.03 billion. The company repurchased 10.0 million shares for $923 million in the quarter and a further 3.6 million shares for $338 million after quarter-end, with $1.14 billion remaining under its authorization. Updated 2026 guidance calls for total revenue of $18.7–$19.0 billion and diluted EPS of $3.15–$3.25.
Positive
- Strong top-line growth: Q1 2026 sales increased 10% year over year to $4.56 billion, with comparable store sales up 8.1%, showing robust demand across professional and DIY customers.
- Margin expansion and earnings growth: Operating income rose 14% to $842 million and net income grew 12% to $604 million, driving a 16% increase in diluted EPS to $0.72.
- Healthy cash generation and capital returns: Free cash flow reached $785.1 million in Q1 2026, supporting $923 million of share repurchases in the quarter and additional buybacks after quarter-end.
- Constructive 2026 outlook: Updated full-year 2026 guidance calls for total revenue of $18.7–$19.0 billion and diluted EPS of $3.15–$3.25, implying continued growth with solid margins and cash flow.
Negative
- None.
Insights
Q1 2026 delivered double-digit growth, margin expansion, and higher full-year earnings guidance.
O’Reilly Automotive posted first quarter 2026 sales of $4.56 billion, up 10% year over year, with comparable store sales up 8.1%. Growth was broad-based, with double-digit gains in professional customers and mid-single digit growth in DIY, indicating healthy demand across channels.
Profitability also improved. Operating income rose 14% to $842 million, expanding operating margin to 18.5% of sales from 17.9%. Net income increased to $604.2 million, and diluted EPS grew 16% to $0.72, aided by both higher earnings and a lower share count from repurchases.
The company generated strong free cash flow of $785.1 million in the quarter and repurchased 10.0 million shares for $923 million, with additional buybacks after quarter-end and $1.14 billion still authorized. Updated full-year 2026 guidance targets revenue of $18.7–$19.0 billion and EPS of $3.15–$3.25, reinforcing expectations for continued growth and solid cash generation.
Leverage remains stable as strong cash flow funds heavy buybacks and growth capex.
The company reported GAAP debt of $6.20 billion and an adjusted debt to EBITDAR ratio of 2.03x for the twelve months ended March 31, 2026, unchanged from the prior year. This suggests leverage is being managed even as debt has increased.
Net cash from operating activities reached $1.03 billion in the quarter, while capital expenditures were $244.4 million. Free cash flow of $785.1 million comfortably covered share repurchases of $922.9 million. The balance sheet shows total assets of $16.94 billion and a shareholders’ deficit driven by cumulative buybacks, which concentrates equity but is supported by recurring cash generation.
8-K Event Classification
Key Figures
Key Terms
comparable store sales financial
free cash flow financial
adjusted debt to EBITDAR financial
ASC 842 financial
Earnings Snapshot
For full-year 2026, the company guides to total revenue of $18.7–$19.0 billion, comparable store sales growth of 3.0%–5.0%, operating margin of 19.3%–19.8%, diluted EPS of $3.15–$3.25, net cash from operating activities of $3.1–$3.5 billion, and free cash flow of $1.8–$2.1 billion.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
Securities registered pursuant to Section 12(b) of the Act:
(NASDAQ Global Select Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of Securities Act of 1933 (230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 – Financial Information
Item 2.02 – Results of Operations and Financial Condition
On April 29, 2026, O’Reilly Automotive Inc. (the “Company”) issued a press release announcing its first quarter 2026 earnings. The text of the press release is attached hereto as Exhibit 99.1.
Section 9 – Financial Statements and Exhibits
Item 9.01 – Financial Statements and Exhibits
Exhibit Number | | Description |
99.1 | Press release dated April 29, 2026 | |
104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document |
The information in this Current Report on Form 8-K shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Exhibit 99.1
FOR IMMEDIATE RELEASE
O’REILLY AUTOMOTIVE, INC. REPORTS FIRST QUARTER 2026 RESULTS
| ● | First quarter comparable store sales growth of 8.1% |
| ● | 16% increase in first quarter diluted earnings per share to $0.72 |
| ● | $1 billion net cash provided by operating activities year-to-date |
Springfield, MO, April 29, 2026 – O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its first quarter ended March 31, 2026.
1st Quarter Financial Results
Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a strong start to 2026, highlighted by an 8.1% increase in comparable store sales and a 16% increase in our first quarter diluted earnings per share. Team O’Reilly delivered comparable store sales results exceeding our expectations in both professional and DIY, with double-digit growth in our professional business and mid-single digit growth in DIY. Our ability to drive productivity in our business and translate robust sales growth into a 14% increase in operating profit is the direct result of our Team’s focus on prudent expense management. I would like to thank all of our Team Members for their incredible hard work in the first quarter and their relentless focus on providing unsurpassed service to our customers each and every day. We look forward to the opportunities we have to grow our market share in 2026 and are encouraged by the stable demand backdrop in our industry.”
Sales for the first quarter of 2026 increased $424 million, or 10%, to $4.56 billion from $4.14 billion for the same period one year ago. Gross profit for the first quarter of 2026 increased 11% to $2.35 billion (or 51.5% of sales) from $2.12 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses for the first quarter of 2026 increased 9% to $1.51 billion (or 33.0% of sales) from $1.38 billion (or 33.4% of sales) for the same period one year ago. Operating income for the first quarter of 2026 increased 14% to $842 million (or 18.5% of sales) from $741 million (or 17.9% of sales) for the same period one year ago.
Net income for the first quarter of 2026 increased $66 million, or 12%, to $604 million (or 13.2% of sales) from $538 million (or 13.0% of sales) for the same period one year ago. Diluted earnings per common share for the first quarter of 2026 increased 16% to $0.72 on 843 million shares versus $0.62 on 864 million shares for the same period one year ago.
1st Quarter Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 8.1% for the first quarter ended March 31, 2026, on top of 3.6% for the same period one year ago.
Share Repurchase Program
During the first quarter ended March 31, 2026, the Company repurchased 10.0 million shares of its common stock, at an average price per share of $92.45, for a total investment of $923 million. Excise tax on shares repurchased, assessed at one
percent of the fair market value of shares repurchased, was $9.2 million for the three months ended March 31, 2026. Subsequent to the end of the first quarter and through the date of this release, the Company repurchased an additional 3.6 million shares of its common stock, at an average price per share of $92.83, for a total investment of $338 million. The Company has repurchased a total of 1.48 billion shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $19.38, for a total aggregate investment of $28.61 billion. As of the date of this release, the Company had approximately $1.14 billion remaining under its current share repurchase authorization.
Updated Full-Year 2026 Guidance
The table below outlines the Company’s updated guidance for selected full-year 2026 financial data:
| | For the Year Ending |
|
| December 31, 2026 |
Net, new store openings |
| 225 to 235 |
Comparable store sales |
| 3.0% to 5.0% |
Total revenue |
| $18.7 billion to $19.0 billion |
Gross profit as a percentage of sales |
| 51.5% to 52.0% |
Operating income as a percentage of sales |
| 19.3% to 19.8% |
Effective income tax rate |
| 22.6% |
Diluted earnings per share (1) | | $3.15 to $3.25 |
Net cash provided by operating activities | | $3.1 billion to $3.5 billion |
Capital expenditures | | $1.3 billion to $1.4 billion |
Free cash flow (2) | | $1.8 billion to $2.1 billion |
| (1) | Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release. |
| (2) | Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure: |
| | For the Year Ending | |||||||
(in millions) |
| December 31, 2026 | |||||||
Net cash provided by operating activities | | $ | 3,110 | | to | | $ | 3,520 | |
Less: | Capital expenditures | |
| 1,300 | | to | |
| 1,400 |
| Excess tax benefit from share-based compensation payments | |
| 10 | | to | |
| 20 |
Free cash flow | | $ | 1,800 | | to | | $ | 2,100 | |
Non-GAAP Information
This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.
Earnings Conference Call Information
The Company will host a conference call on Thursday, April 30, 2026, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 264620. A replay of the conference call will be available on the Company’s website through Thursday, April 29, 2027.
About O’Reilly Automotive, Inc.
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional
information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of March 31, 2026, the Company operated 6,644 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
Forward-Looking Statements
The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; trade disputes and changes in trade policies, including the imposition of new or increased tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2025, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| | March 31, 2026 | | March 31, 2025 | | December 31, 2025 | |||
| | (Unaudited) | | (Unaudited) | | (Note) | |||
Assets | | | | | | | | | |
Current assets: | | | | | | | | | |
Cash and cash equivalents | | $ | 252,632 | | $ | 191,248 | | $ | 193,793 |
Accounts receivable, net | |
| 431,173 | |
| 392,168 | | | 389,793 |
Amounts receivable from suppliers | |
| 165,033 | |
| 129,921 | | | 159,900 |
Inventory | |
| 5,810,121 | |
| 5,172,436 | | | 5,731,385 |
Other current assets | |
| 308,377 | |
| 143,694 | | | 269,406 |
Total current assets | |
| 6,967,336 | |
| 6,029,467 | | | 6,744,277 |
| | | | | | | | | |
Property and equipment, at cost | |
| 10,440,524 | |
| 9,450,387 | | | 10,222,249 |
Less: accumulated depreciation and amortization | |
| 4,065,527 | |
| 3,684,666 | | | 3,964,824 |
Net property and equipment | |
| 6,374,997 | |
| 5,765,721 | | | 6,257,425 |
| | | | | | | | | |
Operating lease, right-of-use assets | |
| 2,450,393 | |
| 2,374,177 | | | 2,391,150 |
Goodwill | |
| 953,035 | |
| 933,130 | | | 948,208 |
Other assets, net | |
| 191,417 | |
| 191,380 | | | 197,193 |
Total assets | | $ | 16,937,178 | | $ | 15,293,875 | | $ | 16,538,253 |
| | | | | | | | | |
Liabilities and shareholders’ deficit | | | | | | | | | |
Current liabilities: | | | | | | | | | |
Accounts payable | | $ | 7,237,126 | | $ | 6,535,532 | | $ | 7,103,684 |
Self-insurance reserves | |
| 321,896 | |
| 154,013 | | | 297,304 |
Accrued payroll | |
| 152,357 | |
| 132,965 | | | 119,603 |
Accrued benefits and withholdings | |
| 256,015 | |
| 214,547 | | | 240,072 |
Income taxes payable | |
| 6,996 | |
| 137,142 | | | 13,957 |
Current portion of operating lease liabilities | |
| 445,416 | |
| 425,330 | | | 439,907 |
Other current liabilities | |
| 804,462 | |
| 910,977 | | | 561,294 |
Total current liabilities | |
| 9,224,268 | |
| 8,510,506 | | | 8,775,821 |
| | | | | | | | | |
Long-term debt | |
| 6,195,311 | |
| 5,651,821 | | | 6,016,904 |
Operating lease liabilities, less current portion | |
| 2,090,498 | |
| 2,026,668 | | | 2,034,688 |
Deferred income taxes | |
| 224,411 | |
| 236,572 | | | 211,210 |
Other liabilities | |
| 269,745 | |
| 225,764 | | | 262,982 |
| | | | | | | | | |
Shareholders’ equity (deficit): | | | | | | | | | |
Common stock, $0.01 par value: | | | | | | | | | |
Authorized shares – 1,250,000,000 | |
| | | | | | | |
Issued and outstanding shares – | | | | | | | | | |
832,292,716 as of March 31, 2026, | | | | | | | | | |
856,702,725 as of March 31, 2025, and | | | | | | | | | |
841,909,238 as of December 31, 2025 | | | 8,323 | |
| 8,567 | | | 8,419 |
Additional paid-in capital | |
| 1,537,430 | |
| 1,476,741 | | | 1,530,292 |
Retained deficit | |
| (2,638,068) | |
| (2,805,929) | | | (2,328,817) |
Accumulated other comprehensive income (loss) | | | 25,260 | | | (36,835) | | | 26,754 |
Total shareholders’ deficit | |
| (1,067,055) | |
| (1,357,456) | | | (763,352) |
| | | | | | | | | |
Total liabilities and shareholders’ deficit | | $ | 16,937,178 | | $ | 15,293,875 | | $ | 16,538,253 |
Note: The balance sheet at December 31, 2025, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
|
| For the Three Months Ended | ||||
|
| March 31, | ||||
| | 2026 | | 2025 | ||
Sales | | $ | 4,560,539 | | $ | 4,136,924 |
Cost of goods sold, including warehouse and distribution expenses | |
| 2,213,328 | |
| 2,015,439 |
Gross profit | |
| 2,347,211 | |
| 2,121,485 |
| | | | | | |
Selling, general and administrative expenses | |
| 1,505,603 | |
| 1,380,019 |
Operating income | |
| 841,608 | |
| 741,466 |
| | | | | | |
Other income (expense): | |
| | |
| |
Interest expense | |
| (62,745) | |
| (57,564) |
Interest income | |
| 1,748 | |
| 1,664 |
Other, net | |
| (522) | |
| (1,215) |
Total other expense | |
| (61,519) | |
| (57,115) |
| | | | | | |
Income before income taxes | |
| 780,089 | |
| 684,351 |
Provision for income taxes | |
| 175,908 | |
| 145,866 |
Net income | | $ | 604,181 | | $ | 538,485 |
| | | | | | |
Earnings per share-basic: | |
| | |
| |
Earnings per share | | $ | 0.72 | | $ | 0.63 |
Weighted-average common shares outstanding – basic | |
| 838,578 | |
| 859,564 |
| | | | | | |
Earnings per share-assuming dilution: | |
| | |
| |
Earnings per share | | $ | 0.72 | | $ | 0.62 |
Weighted-average common shares outstanding – assuming dilution | |
| 842,516 | |
| 864,331 |
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
|
| For the Three Months Ended | ||||
|
| March 31, | ||||
| | 2026 | | 2025 | ||
Operating activities: | | | | | | |
Net income | | $ | 604,181 | | $ | 538,485 |
Adjustments to reconcile net income to net cash provided by operating activities: | |
| | |
| |
Depreciation and amortization of property, equipment and intangibles | |
| 135,361 | |
| 122,224 |
Amortization of debt discount and issuance costs | |
| 1,887 | |
| 1,851 |
Deferred income taxes | |
| 13,291 | |
| (11,159) |
Share-based compensation programs | |
| 8,816 | |
| 8,444 |
Other | |
| 1,987 | |
| 3,191 |
Changes in operating assets and liabilities: | |
| | |
| |
Accounts receivable | |
| (45,716) | |
| (37,758) |
Inventory | |
| (79,069) | |
| (75,081) |
Accounts payable | |
| 135,531 | |
| 9,952 |
Income taxes payable | |
| 951 | |
| 138,513 |
Other | |
| 255,693 | |
| 56,458 |
Net cash provided by operating activities | |
| 1,032,913 | |
| 755,120 |
| | | | | | |
Investing activities: | |
| | |
| |
Purchases of property and equipment | |
| (244,447) | |
| (286,951) |
Proceeds from sale of property and equipment | |
| 1,542 | |
| 1,948 |
Other, including acquisitions, net of cash acquired | |
| (1,751) | |
| — |
Net cash used in investing activities | |
| (244,656) | |
| (285,003) |
| | | | | | |
Financing activities: | |
| | |
| |
Net (payments) proceeds of commercial paper | |
| (163,887) | |
| 129,288 |
Proceeds from the issuance of long-term debt | |
| 847,365 | |
| — |
Principal payments on long-term debt | | | (500,000) | |
| — |
Payment of debt issuance costs | |
| (5,909) | |
| (3,801) |
Repurchases of common stock | |
| (922,947) | |
| (559,432) |
Net proceeds from issuance of common stock | |
| 16,609 | |
| 24,926 |
Other | |
| (270) | |
| (433) |
Net cash used in financing activities | |
| (729,039) | |
| (409,452) |
| | | | | | |
Effect of exchange rate changes on cash | | | (379) | | | 338 |
Net increase in cash and cash equivalents | |
| 58,839 | |
| 61,003 |
Cash and cash equivalents at beginning of the period | |
| 193,793 | |
| 130,245 |
Cash and cash equivalents at end of the period | | $ | 252,632 | | $ | 191,248 |
| | | | | | |
Supplemental disclosures of cash flow information: | |
| | |
| |
Income taxes paid | | $ | 18,909 | | $ | 16,904 |
Interest paid, net of capitalized interest | |
| 43,544 | |
| 39,424 |
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
| | For the Twelve Months Ended | |||||
| | March 31, | |||||
Adjusted Debt to EBITDAR: | | 2026 | | 2025 | |||
(In thousands, except adjusted debt to EBITDAR ratio) |
| | |
| | | |
GAAP debt | | $ | 6,195,311 | | $ | 5,651,821 | |
Add: | Letters of credit | |
| 197,892 | |
| 127,264 |
| Unamortized discount and debt issuance costs | |
| 29,689 | |
| 27,679 |
| Six-times rent expense | |
| 2,986,494 | |
| 2,771,640 |
Adjusted debt | | $ | 9,409,386 | | $ | 8,578,404 | |
| | | | | | | |
GAAP net income | | $ | 2,603,905 | | $ | 2,377,927 | |
Add: | Interest expense | |
| 240,245 | |
| 222,964 |
| Provision for income taxes | |
| 732,004 | |
| 651,098 |
| Depreciation and amortization | |
| 524,367 | |
| 474,468 |
| Share-based compensation expense | |
| 35,487 | |
| 30,353 |
| Rent expense (i) | |
| 497,749 | |
| 461,940 |
EBITDAR | | $ | 4,633,757 | | $ | 4,218,750 | |
| | | | | | | |
Adjusted debt to EBITDAR | |
| 2.03 | |
| 2.03 | |
| (i) | The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended March 31, 2026 and 2025 (in thousands): |
| | For the Twelve Months Ended | |||||
| | March 31, | |||||
| | 2026 | | 2025 | |||
Total lease cost, per ASC 842 | | $ | 598,987 | | $ | 558,415 | |
Less: | Variable non-contract operating lease components, related to property taxes and insurance | |
| 101,238 | | | 96,475 |
Rent expense | | $ | 497,749 | | $ | 461,940 | |
| | March 31, | ||||||
| | 2026 | | 2025 | ||||
Selected Balance Sheet Ratios: |
| | |
| | | | |
Inventory turnover (1) |
| | 1.6 | | | 1.6 | ||
Average inventory per store (in thousands) (2) | | $ | 874 | | $ | 806 | ||
Accounts payable to inventory (3) | |
| 124.6 | % | |
| 126.4 | % |
| | | For the Three Months Ended | ||||
| | | March 31, | ||||
| | | 2026 | | 2025 | ||
Reconciliation of Free Cash Flow (in thousands): |
| | |
| | | |
Net cash provided by operating activities | | $ | 1,032,913 | | $ | 755,120 | |
Less: | Capital expenditures | |
| 244,447 | |
| 286,951 |
| Excess tax benefit from share-based compensation payments | |
| 3,352 | |
| 12,925 |
Free cash flow | | $ | 785,114 | | $ | 455,244 | |
| | For the Three Months Ended | ||||
| | March 31, | ||||
| | 2026 | | 2025 | ||
Revenue Disaggregation (in thousands): | | | | | | |
Sales to do-it-yourself customers | $ | 2,190,132 | | $ | 2,051,859 | |
Sales to professional service provider customers |
| | 2,290,784 |
| | 1,998,593 |
Other sales and sales adjustments |
| | 79,623 | | | 86,472 |
Total sales | | $ | 4,560,539 | | $ | 4,136,924 |
| | For the Three Months Ended | | For the Twelve Months Ended | ||||
| | March 31, | | March 31, | ||||
| | 2026 | | 2025 | | 2026 | | 2025 |
Store Count: | | | | | | | | |
Beginning domestic store count |
| 6,447 |
| 6,265 |
| 6,298 |
| 6,131 |
New stores opened |
| 48 |
| 33 |
| 197 |
| 167 |
Stores closed |
| — |
| — |
| — |
| — |
Ending domestic store count | | 6,495 | | 6,298 | | 6,495 | | 6,298 |
| | | | | | | | |
Beginning Mexico store count | | 112 | | 87 | | 93 | | 63 |
New stores opened | | 9 | | 6 | | 28 | | 30 |
Stores closed | | — | | — | | — | | — |
Ending Mexico store count | | 121 | | 93 | | 121 | | 93 |
| | | | | | | | |
Beginning Canada store count | | 26 | | 26 | | 25 | | 23 |
New stores opened | | 2 | | — | | 3 | | 3 |
Stores closed | | — | | (1) | | — | | (1) |
Ending Canada store count | | 28 | | 25 | | 28 | | 25 |
| | | | | | | | |
Total ending store count |
| 6,644 |
| 6,416 |
| 6,644 |
| 6,416 |
| | For the Three Months Ended | | For the Twelve Months Ended | ||||||||
| | March 31, | | March 31, | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | ||||
Store and Team Member Information: | | | | | | | | | | | | |
Total employment |
| | 93,973 |
| | 93,419 |
| | | | | |
Square footage (in thousands) (4) | | | 52,229 | | | 49,371 | | | | | | |
Sales per weighted-average square foot (4)(5) | | $ | 85.94 | | $ | 82.22 | | $ | 349.36 | | $ | 341.85 |
Sales per weighted-average store (in thousands) (4)(6) | | $ | 688 | | $ | 643 | | $ | 2,774 | | $ | 2,650 |
| (1) | Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator. |
| (2) | Calculated as inventory divided by store count at the end of the reported period. |
| (3) | Calculated as accounts payable divided by inventory. |
| (4) | Represents O’Reilly’s U.S. and Puerto Rico operations only. |
| (5) | Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures. |
| (6) | Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures. |