Genuine Parts Company (GPC) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 4.2% to $6.52B; adjusted EPS increased to $2.07, while GAAP net income was $224M versus $226M a year earlier.

• Sales growth, gross-margin improvement and restructuring savings were partly offset by higher operating costs, separation expenses and Middle East-related cost pressure.

• The planned separation of Global Automotive and Global Industrial remains targeted for Q1 2027.

Financial highlights

• Q3 sales growth comprised 2.9% comparable sales, 0.9% from acquisitions and 0.4% from favorable FX and other impacts.

• Gross profit rose 6.1% to $2.48B; gross margin was 38.1%, up 70 bps YoY.

• Adjusted net income rose 3.8% to $286M and adjusted diluted EPS increased 4.5% to $2.07; GAAP diluted EPS was $1.62, unchanged YoY.

• Adjusted EBITDA increased 4.2% to $549M, with an 8.4% margin, flat YoY; GAAP EBITDA was $462M.

Outlook and guidance

• FY26 sales growth guidance remains 3%–5.5%; adjusted EBITDA is $2.0B–$2.2B, and operating cash flow and free cash flow are guided to $1.0B–$1.2B and $550M–$700M, respectively.

• FY26 diluted EPS guidance is $5.60–$5.85, down from $5.90–$6.40; adjusted diluted EPS guidance narrowed to $7.50–$7.75 from $7.50–$8.00.

• Adjusted EPS is expected toward the lower end of the narrowed range; Q4 top-line performance is expected to resemble Q3, with incremental cost pressure.

• Iran-related incremental costs are estimated at $15M–$25M in Q4 and $30M–$40M in H2, versus the prior H2 estimate of $20M–$30M.