Genuine Parts Narrows 2026 Adjusted Earnings Outlook

The Tip Desk · October 22, 2026 · 3 min read

The parts distributor cut the top of its 2026 adjusted diluted EPS range to $7.75 after third-quarter sales growth slowed to 4.2%.

Genuine Parts Company (GPC) narrowed its full-year 2026 adjusted diluted earnings outlook to $7.50 to $7.75 from $7.50 to $8.00, and cut GAAP diluted earnings to $5.60 to $5.85 from $5.90 to $6.40, after a third quarter in which sales growth slowed.

The Atlanta-based global service provider of automotive and industrial replacement parts said it considered recent business trends, current growth plans, strategic initiatives, the global economic outlook and geopolitical conflicts in updating the ranges. Sales-growth targets for total sales and each of the three reportable segments, as well as operating cash flow of $1.0 billion to $1.2 billion and free cash flow of $550 million to $700 million, were left unchanged.

In the three months ended September 30, 2026, sales were $6.5 billion, up 4.2% from $6.3 billion a year earlier. That compared with 6.0% year-over-year growth in the second quarter. Comparable sales rose 2.9%, down from 3.4% in the prior quarter. Acquisitions added 0.9% and foreign currency and other a net 0.4%.

Net income was $224 million, or $1.62 a share. Adjusted net income was $286 million, or $2.07 a share, versus $276 million, or $1.98 a share, a year earlier. Adjusted results excluded $61 million of after-tax items, or $0.45 a share, tied to the global restructuring initiative and the planned split of the Automotive and Industrial businesses.

North America Automotive, the largest of the three segments, was the clearest drag. Sales were $2.5 billion, up 2.2% from a year earlier, slower than 3.8% in the second quarter. Comparable sales rose 1.7%. Segment EBITDA fell 2.9% to $194 million, and EBITDA margin compressed to 7.6% from 8.2% in the prior quarter.

International Automotive sales were $1.6 billion, up 4.5% from a year earlier, slower than 8.2% in the second quarter. Comparable sales rose 1.1%. Segment EBITDA was $141 million and EBITDA margin was 9.0%.

Industrial sales were $2.4 billion, up 6.1% from a year earlier, slower than 7.1% in the second quarter. Comparable sales rose 5.5%. Segment EBITDA was $317 million and EBITDA margin was 13.2%.

Separation costs of $21 million appeared in the third quarter after none in the year-ago period, alongside $65 million of restructuring and other costs. Chairman and Chief Executive Officer Will Stengel said the company achieved milestones in the separation process and remains on track to launch GPC and Motion as two independent companies in the first quarter of 2027.

For the nine months ended September 30, 2026, sales were $19.3 billion, up 5.6%. Net income was $641 million, or $4.64 a share. Adjusted net income was $827 million, or $5.99 a share. Cash flow from operations was $817 million and free cash flow was $502 million.

As of September 30, 2026, total liquidity was $2.4 billion, including $763 million in cash and $1.6 billion of available capacity under a $2.0 billion revolving credit agreement, with $389 million outstanding under the commercial paper program.