ORLY · 10-Q · 2026Q2 · Full report

Operating Expense Trends

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

SG&A increased 8% to $1.53 billion in the second quarter of 2026 and 9% to $3.04 billion in the first half of 2026. SG&A was 31.3% of sales for the quarter versus 31.2% a year earlier, while the six-month ratio improved to 32.1% from 32.2%. Additional Team Members and operating expenses supported the higher sales volume and store count. Inflationary costs and higher medical and casualty insurance expenses pressured the quarterly ratio, while strong comparable-store sales provided operating-cost leverage, particularly in the first half.

Key facts

• SG&A for the three months ended June 30, 2026, increased 8% to $1.53 billion (or 31.3% of sales) from $1.41 billion (or 31.2% of sales) for the same period one year ago. source
• SG&A for the six months ended June 30, 2026, increased 9% to $3.04 billion (or 32.1% of sales) from $2.79 billion (or 32.2% of sales) for the same period one year ago. source
• Rent expense for the twelve months ended June 30, 2026 was $505,125 (in thousands). source
• Depreciation expense for the twelve months ended June 30, 2026 was $533,595 (in thousands). source
• Total lease cost, per ASC 842 for the twelve months ended June 30, 2026 was $606,667 (in thousands). source
• Variable non-contract operating lease components related to property taxes and insurance for the twelve months ended June 30, 2026 were $101,542 (in thousands). source
• Non-cash share-based compensation for the twelve months ended June 30, 2026 was $33,815 (in thousands). source
• The increases in total SG&A dollars for the three and six months ended June 30, 2026, were primarily the result of additional Team Members and operating expenses to support our increased sales and store count. source

Impact estimates