O’Reilly Automotive, Inc. (ORLY), a specialty retailer of automotive aftermarket parts, reported comparable store sales growth of 6.0% for the second quarter ended June 30, 2026, a slower pace than the 8.1% increase in the first quarter.

The deceleration from the first quarter was the quarter’s defining turn. Sales still rose 8% to $4.89 billion, after a 10% increase to $4.56 billion in the prior quarter. Gross profit was $2.52 billion, or 51.4% of sales. Selling, general and administrative expenses were $1.53 billion, or 31.3% of sales. Operating income rose 8% to $986 million, or 20.2% of sales. Net income was $715 million, or 14.6% of sales. Diluted earnings were $0.86 a share on 829 million shares, after a 16% increase to $0.72 in the first quarter.

Chief Executive Brad Beckham said the team delivered growth in both professional and DIY and that the company remains committed to taking market share through service and parts availability. Sales to professional service provider customers were $2.47 billion in the quarter, and sales to do-it-yourself customers were $2.34 billion. Other sales and sales adjustments were $85.6 million. As of June 30, 2026, the company operated 6,695 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.

Beckham said that as a result of first-half performance the company is raising full-year 2026 comparable store sales guidance to a range of 4% to 6%. The updated sales outlook, he said, reflects confidence in underlying demand drivers and the team’s focus on customer service. Full-year 2026 guidance now includes total revenue of $18.9 billion to $19.2 billion, gross profit of 51.5% to 52.0% of sales, operating income of 19.3% to 19.8% of sales, an effective tax rate of 22.5%, and diluted earnings of $3.20 to $3.30 a share. Net cash provided by operating activities is guided at $3.1 billion to $3.5 billion, capital expenditures at $1.3 billion to $1.4 billion, and free cash flow at $1.8 billion to $2.1 billion.

For the six months ended June 30, 2026, sales increased 9% to $9.45 billion. Comparable store sales rose 7.0% for the half. Gross profit was $4.86 billion, or 51.5% of sales. SG&A was $3.04 billion, or 32.1% of sales. Operating income rose 10% to $1.83 billion, or 19.3% of sales. Net income was $1.32 billion, or 14.0% of sales. Diluted earnings were $1.58 a share on 836 million shares. The company opened 110 net new stores in the first half and said it is on track for 225 to 235 net new store openings in 2026.

During the second quarter, the company repurchased 16.7 million shares at an average of $90.40 a share, for $1.51 billion. For the six months, it repurchased 26.7 million shares at an average of $91.17 a share, for $2.43 billion. Subsequent to quarter-end and through the release date, it bought another 7.3 million shares at an average of $86.81 a share, for $632 million. Cash and cash equivalents were $262.2 million at June 30, 2026. Long-term debt was $7.01 billion. Net cash provided by operating activities was $2.04 billion for the six months. Free cash flow was $1.48 billion for the six months. The company had about $1.33 billion remaining under its share repurchase authorization as of the release date.