ORLY · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

O REILLY AUTOMOTIVE INC · 2026-08-07 · Importance 50 · Surprise 32 · No source text

Gross profit increased 8% to $2.52 billion, while gross margin remained 51.4% in the three months ended June 30, 2026. For the six months ended June 30, 2026, gross profit increased 9% to $4.86 billion and gross margin increased to 51.5% from 51.4%. Improved acquisition costs and distribution operating efficiencies supported the margin improvement during both periods. A greater mix of sales to professional service provider customers, who generate lower gross margins than DIY customers, partially offset the margin benefit.

Key facts

• Gross profit for the three months ended June 30, 2026, increased 8% to $2.52 billion (or 51.4% of sales) from $2.33 billion (or 51.4% of sales) for the same period one year ago. source
• Gross profit for the six months ended June 30, 2026, increased 9% to $4.86 billion (or 51.5% of sales) from $4.45 billion (or 51.4% of sales) for the same period one year ago. source
• Increases in gross profit as a percentage of sales for the three and six months ended June 30, 2026, were primarily due to improved acquisition costs and distribution operating efficiencies, partially offset by a greater percentage of sales mix from professional service provider customers. source

Impact estimates