ORLY · 10-Q · 2026Q2 · Full report

Income Tax Rate Changes

O REILLY AUTOMOTIVE INC · 2026-08-07 · Importance 42 · Surprise 40 · From source text

The quarterly income-tax provision increased 8% to $209 million, with the effective tax rate rising to 22.6% from 22.4%. The six-month provision increased 14% to $385 million, while the effective tax rate increased to 22.6% from 21.9%. Higher taxable income increased the provision in both periods. Lower excess tax benefits from share-based compensation primarily drove the effective-rate increases.

Key facts

• Our provision for income taxes for the six months ended June 30, 2026, increased 14% to $385 million (22.6% effective tax rate) from $339 million (21.9% effective tax rate) for the same period one year ago. source
• Our provision for income taxes for the three months ended June 30, 2026, increased 8% to $209 million (22.6% effective tax rate) from $193 million (22.4% effective tax rate) for the same period one year ago. source
• The increases in our effective tax rate for the three and six months ended June 30, 2026, were primarily the result of lower excess tax benefits from share-based compensation. source

Impact estimates