O’Reilly Automotive (ORLY), a leading retailer in the automotive aftermarket industry, reported record third-quarter revenue and earnings for the period ended September 30, 2026, and lifted its full-year 2026 comparable store sales outlook to 5.5% to 6.5% from the 4% to 6% range it set after the second quarter.

Sales increased $416 million, or 9%, to $5.12 billion from $4.71 billion a year earlier. Comparable store sales rose 7.2%, on top of 5.6% growth in the same period last year, producing a two-year stack of 12.8%. That comparable-store rate followed 6.0% in the second quarter and 8.1% in the first quarter.

Chief executive Brad Beckham said the increase was driven by share gains on both sides of the business, with double-digit growth in the professional segment and mid-single-digit growth in do-it-yourself. Professional service provider sales were $2.60 billion, versus $2.31 billion a year earlier; DIY sales were $2.45 billion, versus $2.30 billion.

Gross profit rose 10% to $2.68 billion, or 52.4% of sales, from $2.44 billion, or 51.9% of sales, a year earlier. Gross margin had been 51.4% of sales in the second quarter and 51.5% in the first quarter. Selling, general and administrative expenses increased 8% to $1.58 billion, or 30.9% of sales. Operating income rose 13% to $1.10 billion, or 21.4% of sales, from $976 million, or 20.7% of sales. Operating income had grown 8% in the second quarter and 14% in the first quarter.

Net income increased $60 million, or 8%, to $786 million, or 15.3% of sales, from $726 million, or 15.4% of sales. Diluted earnings per common share rose 14% to $0.97 on 812 million shares, versus $0.85 on 853 million shares. Diluted earnings had risen 10% in the second quarter and 16% in the first quarter. Beckham said the top-line growth, coupled with a $39 million benefit from tariff refunds received during the third quarter, drove the 14% increase in diluted earnings per share.

For the first nine months of 2026, sales increased $1.21 billion, or 9%, to $14.57 billion from $13.37 billion. Comparable store sales rose 7.1% for the nine months, on top of 4.5% a year earlier. Net income for the nine months increased $172 million, or 9%, to $2.10 billion, or 14.4% of sales. Diluted earnings per share for the nine months rose 13% to $2.54 on 828 million shares, versus $2.25 on 858 million shares. Net cash provided by operating activities was $2.6 billion year-to-date.

Beckham said the company is raising full-year 2026 gross margin guidance to 51.6% to 52.1% and operating profit guidance to 19.5% to 20.0%. Those updates, he said, incorporate third-quarter performance, including the tariff-refund benefit, and fourth-quarter margin expectations. Updated full-year 2026 guidance also includes total revenue of $19.0 billion to $19.3 billion, diluted earnings of $3.25 to $3.35 a share, and net cash provided by operating activities of $3.2 billion to $3.6 billion.

Year-to-date, the company opened 173 net new stores across North America and said it is on track for 225 to 235 net new openings in 2026. As of September 30, 2026, it operated 6,758 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.

During the third quarter, O’Reilly repurchased 11.8 million shares at an average price of $87.34, for $1.03 billion. In the first nine months it bought 38.5 million shares at an average of $89.99, for $3.47 billion. After quarter-end and through the release date, it repurchased another 2.3 million shares at an average of $87.11, for $204 million. About $727 million remained under its current authorization.