O'Reilly Automotive (ORLY) — Company Research
Last Updated: 3 July 2026
O'Reilly Automotive, Inc. (Nasdaq: ORLY) is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States, serving both do-it-yourself (DIY) and professional service provider customers through 6,644 stores across 48 US states, Puerto Rico, Mexico and Canada as of 31 March 2026, per the Q1 2026 earnings release (29 April 2026). In FY2025 the company generated record sales of $17.78 billion (up 6%), operating income of $3.46 billion (19.5% of sales) and diluted EPS of $2.97 (up 10%), per the Q4 2025 earnings release (4 February 2026) - its 33rd consecutive year of comparable store sales growth. The stock trades at approximately $90.28 (2 July 2026) against a 52-week range of $84.76 to $108.72, and Q2 2026 results are due on 29 July 2026, per the company's 1 July 2026 announcement. Track the shares on our Live Charts page, watch macro catalysts on the Economic Calendar, and discuss this research in the ChartsView Forum.
1. Company Snapshot
| Field | Value |
|---|---|
| Name | O'Reilly Automotive, Inc. |
| Ticker / Exchange | ORLY / Nasdaq |
| Sector / Industry | Consumer & Retail / Automotive aftermarket parts retail |
| Market cap | ~$74.8bn (2 July 2026, per S&P Global data via stockanalysis.com) |
| Enterprise value | ~$80.8bn (market cap ~$74.8bn + long-term debt $6.20bn - cash $0.25bn, per the 31 March 2026 balance sheet; ~$85.6bn if operating lease liabilities are included, per S&P Global data) |
| FY2025 revenue | $17,782.0m, up 6% (Q4 2025 earnings release, 4 February 2026) |
| FY2025 operating income | $3.46bn, 19.5% of sales (Q4 2025 earnings release) |
| FY2025 net income / diluted EPS | $2.54bn / $2.97 (Q4 2025 earnings release) |
| FY2025 free cash flow | $1,563.3m (company-defined: operating cash flow $2,762.0m - capex $1,168.8m - excess tax benefit; Q4 2025 earnings release) |
| Employees | 93,973 total employment at 31 March 2026 (Q1 2026 earnings release) |
| CEO | Brad Beckham, Chief Executive Officer (since January 2024); David E. O'Reilly, Executive Chairman |
| CFO | Jeremy Fletcher, EVP and Chief Financial Officer (since 2022) |
| Headquarters | Springfield, Missouri, USA (founded 1957 by the O'Reilly family) |
| Website | www.oreillyauto.com |
| Fiscal year-end | 31 December |
| Next earnings | 29 July 2026 after 3:30 p.m. CT (Q2 2026); conference call 30 July 2026 (company announcement, 1 July 2026) |
| Dividend | None - O'Reilly does not pay a dividend; capital is returned via buybacks ($2.10bn repurchased in FY2025, per the Q4 2025 release) |
| 52-week high / low | $108.72 / $84.76 (early July 2026, per Yahoo Finance/CNBC data) |
| Short interest | 2.96% of float; 3.47 days to cover (S&P Global data via stockanalysis.com, 2 July 2026) |
| Stock split note | 15-for-1 forward split effective 10 June 2025; all per-share figures in this report are split-adjusted |
2. Bull Case vs Bear Case
Bull Case
- Compounding machine with 33 straight years of comp growth: FY2025 marked the 33rd consecutive year of comparable store sales growth, with comps up 4.7% in FY2025 and accelerating to 8.1% in Q1 2026, per the Q4 2025 and Q1 2026 earnings releases.
- Professional business firing: Sales to professional service providers grew 10.4% to $8.65bn in FY2025 and posted double-digit comparable growth for a third consecutive quarter in Q1 2026, per company earnings releases - a share-gain story in the more resilient half of the aftermarket.
- Raised 2026 guidance: After Q1 2026 (EPS +16%, operating income +14%), management raised full-year diluted EPS guidance to $3.15-$3.25 on revenue of $18.7bn-$19.0bn and free cash flow of $1.8bn-$2.1bn, per the Q1 2026 earnings release.
- Relentless buybacks shrink the share count: The company repurchased $2.10bn of stock in FY2025 and a further $923m in Q1 2026 (plus $338m post-quarter), reducing diluted shares 2.5% year over year; since 2011 it has bought back $28.6bn of stock, per company releases.
- Store growth runway: 225-235 net new stores are planned for 2026, and the newer Mexico (121 stores) and Canada (28 stores) markets grew from 93 and 25 a year earlier, per the Q1 2026 earnings release.
Bear Case
- Balance sheet is levered by design: O'Reilly runs a shareholders' deficit of -$1.07bn with long-term debt of $6.20bn at 31 March 2026 (up from $5.52bn at year-end 2024), per company releases; adjusted debt to EBITDAR stands at 2.03x. Buybacks depend on debt markets staying open at acceptable cost.
- A ~$10bn acquisition would change the risk profile: Press reports on 2 July 2026 said O'Reilly has made a cash offer for Genuine Parts Company's automotive unit that could value it above $10 billion; ORLY shares fell over 4% on the report (Yahoo Finance/Stocktwits, 2 July 2026). If consummated, it would be the company's largest deal since 2008, with integration and leverage risk. Reported factually; the company has not confirmed terms.
- Premium valuation for mid-single-digit top-line growth: The shares trade at ~30x trailing GAAP earnings and ~40x free cash flow (S&P Global data, 2 July 2026) against 6% FY2025 revenue growth - little room for execution slips.
- Tariffs and cost inflation: The FY2025 10-K risk factors cite trade disputes and "the imposition of new or increased tariffs" on top of general inflation; parts cost inflation flows through the P&L of every aftermarket retailer.
- Tight liquidity metrics: The current ratio is 0.76 with negative working capital of ~$2.3bn (S&P Global data, July 2026), a supplier-financed model in which accounts payable stood at 124.6% of inventory at 31 March 2026 (Q1 2026 release) - efficient, but dependent on supplier-finance conditions.
3. What Does O'Reilly Actually Do?
O'Reilly sells automotive aftermarket parts, tools, supplies, equipment and accessories through a "dual market strategy" - the same store base serves both retail DIY customers at the counter and professional repair shops via commercial delivery. Revenue splits almost evenly between the two, per the Q4 2025 earnings release:
| Segment | % of revenue | What it is |
|---|---|---|
| DIY customers | 49.3% ($8,765.6m FY2025) | Retail sales to do-it-yourself car owners buying parts, fluids, batteries, tools and accessories in-store and online. Per the Q4 2025 earnings release revenue disaggregation. |
| Professional service providers | 48.7% ($8,651.7m FY2025) | Wholesale-style commercial sales delivered to independent garages, repair chains and dealerships, supported by dedicated sales teams and rapid parts delivery. Per the Q4 2025 earnings release. |
| Other sales and adjustments | 2.1% ($364.6m FY2025) | Specialty machinery sales, sales to independent parts stores and revenue adjustments. Per the Q4 2025 earnings release. |
Geographically the business is overwhelmingly US-based: 6,495 of 6,644 stores are domestic (48 states plus Puerto Rico), with 121 in Mexico and 28 in Canada at 31 March 2026, per the Q1 2026 earnings release. Sales per weighted-average store were $2.77m over the twelve months to March 2026 (US and Puerto Rico operations), per the same release.
4. The Business Model
Revenue model and moat: The model is transactional retail with a distribution moat. O'Reilly's stores are replenished from a hub-and-distribution-centre network that gives same-day or overnight access to a deep parts assortment - the "industry-leading parts availability" management credits for share gains on both sides of the business, per the Q4 2025 earnings release. Professional customers in particular buy from whoever has the right part fastest, making availability and delivery speed the key switching cost.
Unit economics: Unit economics are strong for retail: FY2025 gross margin was 51.6% of sales and operating margin 19.5%, per the Q4 2025 earnings release. Inventory of $5.81bn at 31 March 2026 turned 1.6x, but is more than fully funded by suppliers - accounts payable were 124.6% of inventory - so growth consumes little working capital, per the Q1 2026 earnings release. Cash generated ($2.76bn operating cash flow in FY2025) funds new stores and distribution capacity (capex $1.17bn in FY2025) with the remainder returned via buybacks, a formula the company has run since 2011, per the Q4 2025 earnings release.
5. Financial Health
Five-year annual trend (per company Q4/full-year earnings releases; per-share figures adjusted for the 15-for-1 split of June 2025; O'Reilly reports GAAP only and pays no dividend):
| Year | Revenue | YoY % | GAAP EPS | Adjusted EPS | Dividend/share | Long-term debt (YE) |
|---|---|---|---|---|---|---|
| 2021 | $13.33bn | +14.8% | $2.07 | - (GAAP-only reporter) | none | - not in this report's source data |
| 2022 | $14.41bn | +8.1% | $2.23 | - (GAAP-only reporter) | none | - not in this report's source data |
| 2023 | $15.81bn | +9.7% | $2.56 | - (GAAP-only reporter) | none | - not in this report's source data |
| 2024 | $16,708.5m | +5.7% | $2.71 | - (GAAP-only reporter) | none | $5,520.9m |
| 2025 | $17,782.0m | +6.4% | $2.97 | - (GAAP-only reporter) | none | $6,016.9m |
Note: FY2021-FY2023 revenue and EPS are as reported in the company's fourth-quarter earnings releases for those years (EPS divided by 15 for the June 2025 split); year-end long-term debt for those years was not pulled from primary sources for this report. Long-term debt rose further to $6,195.3m at 31 March 2026, per the Q1 2026 earnings release.
Quarterly trend, most recent first (per company earnings releases; O'Reilly does not report adjusted EPS):
| Quarter | Revenue | Adjusted EPS | GAAP EPS |
|---|---|---|---|
| Q1 2026 | $4.56bn | - | $0.72 |
| Q4 2025 | $4.41bn | - | $0.71 |
| Q3 2025 | $4.71bn | - | $0.85 |
| Q2 2025 | $4.52bn | - | $0.78 |
| Q1 2025 | $4.14bn | - | $0.62 |
| FY2025 total | $17.78bn | - | $2.97 |
Direction of travel: revenue grew in every quarter of FY2025 and accelerated to +10.2% in Q1 2026, with comparable store sales moving from +3.6% (Q1 2025) to +8.1% (Q1 2026), per company releases. Q1 2026 operating cash flow was $1,032.9m against capex of $244.4m, leaving free cash flow of $785.1m, per the Q1 2026 earnings release. Cash was $252.6m at 31 March 2026 against long-term debt of $6,195.3m; during the quarter the company issued $847.4m of long-term debt, repaid $500.0m, and reduced commercial paper by $163.9m, per the Q1 2026 cash flow statement.
6. Valuation & Market Data
Raw metrics, July 2026. Not opinions on whether the stock is cheap or expensive.
| Metric | Value |
|---|---|
| Share price | $90.28 (2 July 2026, intraday) |
| Market cap | ~$74.8bn (2 July 2026) |
| Enterprise value | ~$80.8bn (market cap ~$74.8bn + GAAP long-term debt $6.20bn - cash $0.25bn per the 31 March 2026 balance sheet; ~$85.6bn including ~$2.5bn of operating lease liabilities, per S&P Global data) |
| Trailing P/E (GAAP) | ~30x ($90.28 / TTM diluted EPS $3.07; TTM EPS = FY2025 $2.97 - Q1 2025 $0.62 + Q1 2026 $0.72, per company releases) |
| P/E (forward) | ~28x (S&P Global consensus-based data, 2 July 2026); company FY2026 guidance implies ~28x at the $3.20 midpoint |
| P/S (TTM) | ~4.2x (TTM revenue $18.21bn, S&P Global data) |
| P/B | n/a - shareholders' equity is negative (-$1.07bn at 31 March 2026) due to cumulative buybacks |
| EV/EBITDA (TTM) | ~20x (EV ~$80.8bn / TTM EBITDA ~$4.08bn; EBITDA = TTM operating income $3.56bn + TTM D&A $0.52bn, per company releases and S&P Global data; ~21x including lease liabilities in EV) |
| P/FCF | ~39x (market cap ~$74.8bn / TTM FCF ~$1.91bn; FCF = TTM operating cash flow $3.04bn - capex $1.13bn). On FY2025 company-defined FCF of $1,563.3m the multiple is ~48x |
| 52-week high | $108.72 |
| 52-week low | $84.76 |
| Beta (5Y) | 0.51 |
| Average daily volume (20d) | ~8.6m shares |
| Shares outstanding / float | 828.7m / 821.0m |
| Short interest (% of float) | 2.96% (settlement data via stockanalysis.com, 2 July 2026) |
| Days to cover | 3.47 |
| Dividend yield | n/a - no dividend paid; buyback yield ~2.7% (S&P Global data) |
| ROA / ROIC | 13.8% / 35.9% (TTM, S&P Global data); ROE n/a on negative equity |
| Current ratio | 0.76 |
| Adjusted debt to EBITDAR | 2.03x (company-calculated, twelve months to 31 March 2026, Q1 2026 earnings release) |
7. What Are They Building / What's Coming
Per the Q1 2026 earnings release, the 2026 plan calls for 225 to 235 net new store openings and capital expenditures of $1.3bn-$1.4bn, funding stores, distribution capacity and technology. International remains the newest growth leg: the Mexico store base grew from 93 to 121 and Canada from 25 to 28 in the twelve months to March 2026, per the same release. Guidance raised with Q1 2026 results targets full-year revenue of $18.7bn-$19.0bn, operating margin of 19.3%-19.8% and diluted EPS of $3.15-$3.25.
The most consequential potential development is M&A: on 2 July 2026, press reports (Yahoo Finance, Stocktwits, citing a Wall Street Journal report) said O'Reilly has made a cash offer for Genuine Parts Company's automotive parts unit (NAPA) that could value the business at more than $10 billion, with a decision possible by the end of summer; Genuine Parts may instead retain or spin off the division, and rival bids could emerge. O'Reilly has not confirmed the offer in its own releases; if completed it would be the company's largest acquisition since 2008. Reported factually with attribution - this is not a ChartsView forecast.
8. Competitive Landscape
The US automotive aftermarket is a large, fragmented market where scale in distribution and parts availability drives share. O'Reilly's principal listed competitors:
| Peer | Market cap (June/July 2026) | Key 2025/2026 metric |
|---|---|---|
| AutoZone (AZO) | ~$52.5bn (1 July 2026, per companiesmarketcap/MacroTrends data) | Q3 FY2026 (12 weeks to 9 May 2026) net sales $4.8bn, +8.4% YoY, per AutoZone's Q3 FY2026 earnings release |
| Genuine Parts Company (GPC) | ~$18.4bn (2 July 2026, after +13% move on bid reports, per Yahoo Finance) | Reported to have received a cash offer from O'Reilly for its automotive unit valuing it above $10bn (press reports, 2 July 2026); GPC said in February it was working with advisers on separating the auto business |
| Advance Auto Parts (AAP) | ~$3.7bn (early July 2026, per companiesmarketcap data) | FY2025 (ended 3 January 2026) comparable sales +1.1% in Q4; FY25 adjusted operating margin 2.5%, per AAP's Q4 FY2025 earnings release |
| Walmart / Amazon (indirect) | - | General merchandisers and online marketplaces compete in DIY categories such as oil, batteries and accessories; no aftermarket-specific disclosures |
O'Reilly's FY2025 revenue of $17.78bn and ~19.5% operating margin compare with low-single-digit margins at Advance Auto Parts, per the companies' respective FY2025 releases; AutoZone remains the closest peer in scale and profitability. Figures are USD from the cited sources.
9. Leadership and Ownership
Brad Beckham became Chief Executive Officer in January 2024, having risen through store operations over more than 25 years at the company; he previously served as co-president. David E. O'Reilly, of the founding family, serves as Executive Chairman. Jeremy Fletcher has been EVP and Chief Financial Officer since 2022, per MarketScreener/GlobalData executive records. Insider ownership is approximately 0.8% and institutional ownership approximately 86.3%, per S&P Global data via stockanalysis.com (2 July 2026).
Recent insider transactions from SEC Form 4 filings in 2026:
| Name | Date | Type | Shares | Price | Value | Plan Type |
|---|---|---|---|---|---|---|
| Brad W. Beckham (CEO) | 8 May 2026 | Option exercise and sale | 13,635 | exercised at $17.12; sold at $95.00 | ~$1.3m (sale) | Open market |
| Philip M. Hopper (SVP) | 7 May 2026 | Option exercise and sale | 3,700 | $94.60 (wtd avg) | ~$0.35m | Open market |
| John R. Murphy (Director) | 18 May 2026 | Sale | 2,595 | $88.67 | ~$0.23m | Open market |
| David E. O'Reilly (Exec Chairman) | 29 Jan 2026 | Restricted share award | 3,733 | $98.85 (grant price) | ~$0.37m | Equity compensation grant |
| Jose A. Montellano Najera (SVP) | 2026 | Option grant | 6,720 options | $91.54 exercise price | - | Equity compensation grant |
Source: SEC Form 4 filings as summarised by StockTitan's SEC filing feed, January-May 2026.
10. Risks and Challenges
- Consumer demand and the economy (Market & Demand): Per the FY2025 10-K risk factors, the economy in general, inflation, consumer debt levels and product demand can all affect results; DIY customers are sensitive to household budgets.
- Tariffs and trade policy (Regulatory): The FY2025 10-K cites trade disputes and changes in trade policies, "including the imposition of new or increased tariffs", as a risk to product costs and availability.
- Competition (Competitive): The FY2025 10-K lists competition and the market for auto parts among principal risks; AutoZone, NAPA/Genuine Parts, Advance Auto Parts and online channels all contest the same customers.
- Increased debt levels (Financial): The FY2025 10-K specifically flags "our increased debt levels" and "credit ratings on public debt"; long-term debt rose from $5.52bn (December 2024) to $6.20bn (March 2026), per company balance sheets, while equity is negative.
- Acquisition execution (Operational): The FY2025 10-K cites risks associated with the performance of acquired businesses; the reported ~$10bn bid for Genuine Parts' auto unit (press reports, 2 July 2026) would materially raise integration stakes if completed.
- Supply chain disruption (Operational): Per the FY2025 10-K, availability of key products and supply chain disruptions are a standing risk for a business holding $5.81bn of inventory across 6,644 stores.
- Cyber and IT failure (Cyber & Physical): The FY2025 10-K cites damage, failure or interruption of information technology systems, including information security and cyber-attacks.
- Weather (Environmental & Weather): The FY2025 10-K lists weather among factors that can influence demand - mild winters reduce part failures while severe weather disrupts store operations.
11. Recent Developments
- 02 Jul 2026 - Reported ~$10bn cash bid for Genuine Parts' automotive unit. Press reports said O'Reilly has made a cash offer for GPC's auto parts business (NAPA) that could value it above $10 billion, with a decision possible by end of summer; GPC shares rose ~13% and ORLY fell over 4% on the report. O'Reilly has not confirmed the offer. Source: Yahoo Finance / Stocktwits, citing Wall Street Journal reporting.
- 01 Jul 2026 - Q2 2026 earnings date set. Results will be released after 3:30 p.m. CT on Wednesday 29 July 2026, with the conference call on Thursday 30 July 2026 at 10:00 a.m. CT. Source: company press release.
- Mid-Jun 2026 - Shares consolidate near 50-day average. ORLY traded around $90-93 in late June 2026, roughly 15% below its 52-week high of $108.72, with a 50-day moving average of $90.78. Source: S&P Global market data via stockanalysis.com, 2 July 2026.
12. Key Dates Coming Up
- 29 Jul 2026 — Q2 2026 earnings release, after 3:30 p.m. Central Time. Confirmed by company press release, 1 July 2026.
- 30 Jul 2026 — Q2 2026 earnings conference call, 10:00 a.m. Central Time. Confirmed by company press release, 1 July 2026.
- 31 Aug 2026 — (Indicative end-of-summer timing) Possible decision on Genuine Parts' automotive unit sale process, in which O'Reilly is a reported bidder, per press reports of 2 July 2026 (timing indicative, not company-confirmed).
- 21 Oct 2026 — Q3 2026 earnings expected (date indicative), based on the company's historical cadence (Q3 2025 was reported on 22 October 2025); date not yet confirmed by the company.
Disclaimer: This research is produced by ChartsView for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. All information is sourced from publicly available company filings, press releases, and official data. ChartsView does not use analyst opinions or third-party ratings. Always conduct your own due diligence and consider your personal financial situation before making investment decisions. Past performance is not indicative of future results.
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13. Thesis Verdict
The central thesis. O'Reilly Automotive retails automotive aftermarket parts through 6,644 stores serving DIY (49.3% of FY2025 sales) and professional (48.7%) customers, with distribution density and parts availability as the moat. FY2025 delivered record sales of $17.78bn (up 6%), operating income of $3.46bn (19.5% of sales) and diluted EPS of $2.97 (up 10%) - a 33rd consecutive year of comparable sales growth - and after Q1 2026 comps of +8.1% management raised FY2026 guidance to $18.7-19.0bn revenue and $3.15-3.25 EPS, per company releases. The structural driver is professional-segment share gains plus 225-235 planned new stores, with a reported ~$10bn bid for Genuine Parts' automotive unit (press reports, 2 July 2026) as the major near-term swing factor.
What would confirm or break it. Confirmation would be Q2 2026 results (29 July 2026) sustaining double-digit professional comps and full-year guidance, with buybacks continuing to shrink the share count. The thesis breaks on a leveraged misstep - the FY2025 10-K flags increased debt levels (Section 10, Financial) on an already negative-equity balance sheet - on tariff-driven cost inflation (Section 10, Regulatory), or if the reported GPC auto-unit acquisition proceeds on terms that strain the 2.03x adjusted debt/EBITDAR profile (Section 2 bear case).
Watchpoints
- ConfirmsQ2 2026 earnings (26 days) landing in line with or above management guidance.
- ConfirmsEvidence supporting the "Compounding machine with 33 straight years of comp growth:" thesis continuing to build across subsequent filings.
- InvalidatesMaterialisation of the "Increased debt levels (Financial):" risk, or any disclosure that fundamentally alters the capital-return or growth profile stated by management.
Diagnostic grid
Generated by ChartsView research tooling. Thesis strength measures how well the evidence in this report supports the company's stated thesis — it is NOT a buy/sell rating or price target. ChartsView is not authorised by the FCA to provide regulated investment advice. Generated 3 Jul 2026.