ORLY · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

O REILLY AUTOMOTIVE INC · 2026-11-06 · Importance 42 · Surprise 40 · No source text

Third-quarter gross profit increased 10% to $2.68 billion, or 52.4% of sales, from $2.44 billion, or 51.9%, a year earlier. Nine-month gross profit increased 10% to $7.55 billion, or 51.8% of sales, from $6.89 billion, or 51.5%. Gross profit dollars benefited from comparable-store growth, new stores, and $39 million of tariff refunds. Margin improvement also reflected tariff refunds, lower acquisition costs in select categories, and distribution-cost leverage, partly offset by a higher professional service provider sales mix and more petroleum-based commodity sales.

Key facts

• O’Reilly’s gross profit for the three months ended September 30, 2026, increased 10% to $2.68 billion, or 52.4% of sales, from $2.44 billion, or 51.9% of sales, a year earlier. source
• O’Reilly’s gross profit for the nine months ended September 30, 2026, increased 10% to $7.55 billion, or 51.8% of sales, from $6.89 billion, or 51.5% of sales, a year earlier. source
• O’Reilly’s gross profit dollar increases in the three and nine months ended September 30, 2026, primarily reflected higher comparable-store sales, sales from new stores, and $39 million of tariff refunds. source
• O’Reilly’s gross margin percentage increases in the three and nine months ended September 30, 2026, primarily reflected tariff refunds, improved acquisition costs for select product categories, and distribution-cost leverage, partly offset by a greater professional service provider sales mix and higher petroleum-based commodity category mix. source

Impact estimates