O’Reilly Automotive (ORLY) Q3 2025 earnings summary

Executive summary

• Achieved record third quarter revenue of $4.71 billion, up 8% year-over-year, with net income of $726 million, up 9% year-over-year, driven by 5.6% comparable store sales growth and new store openings.

• Professional segment led growth with over 10% comp sales increase and strong ticket count, while DIY saw low single-digit comp growth, mainly from average ticket increases.

• Diluted EPS for Q3 2025 was $0.85, up 12% year-over-year; nine-month diluted EPS was $2.25, up 8% year-over-year, adjusted for a 15-for-1 stock split.

• 160 net new stores opened in the first nine months of 2025, bringing the total to 6,538 across the U.S., Puerto Rico, Mexico, and Canada.

Financial highlights

• Gross margin for Q3 was 51.9%, up from 51.6% a year ago and above full-year guidance range.

• Operating income for Q3 2025 was $976 million (20.7% of sales), up 9% year-over-year; diluted EPS up 12%.

• SG&A per store grew 4% in Q3, driven by sales-related expenses and inflationary pressures.

• Free cash flow for the first nine months was $1.2 billion, down from $1.7 billion last year, mainly due to accelerated renewable energy tax credit payments.

• Inventory per store ended Q3 at $858,000, up 10% year-over-year.

Outlook and guidance

• Raised full-year comparable store sales guidance to 4%-5% and EPS guidance to $2.90-$3.00, reflecting improved outlook.

• Full-year revenue expected between $17.6 and $17.8 billion; gross margin guidance 51.2%-51.7%.

• Free cash flow guidance for 2025 revised to $1.5-$1.8 billion; capital expenditures projected at $1.1-$1.2 billion.

• 2025 new store opening target of 200-210 net new stores; 2026 target set at 225-235, including entry into Canada.

• Full-year effective tax rate guidance lowered to 21.6% due to accelerated tax credit benefits.