ORLY · 10-Q · 2026Q3 · Full report
Income Tax Rate Changes
O REILLY AUTOMOTIVE INC · 2026-11-06 · Importance 36 · Surprise 40 · From source text
The third-quarter income tax provision increased 20% to $237 million, and the effective tax rate rose to 23.1% from 21.4%. The nine-month provision increased 16% to $621 million, while the effective rate increased to 22.8% from 21.7%. Higher taxable income and lower excess tax benefits from share-based compensation drove the provision increase; the rate increase primarily reflected the lower share-based compensation tax benefits.
Key facts
- O’Reilly’s income tax provision for the nine months ended September 30, 2026, increased 16% to $621 million, with a 22.8% effective tax rate, from $536 million and 21.7% a year earlier. source
- O’Reilly’s income tax provision for the three months ended September 30, 2026, increased 20% to $237 million, with a 23.1% effective tax rate, from $198 million and 21.4% a year earlier. source
- O’Reilly’s tax provision increases for the three and nine months ended September 30, 2026, resulted from higher taxable income and lower excess tax benefits from share-based compensation. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | realized | -1.7% | O’Reilly’s income tax provision for the nine months ended September 30, 2026, increased 16% to $621 million, with a 22.8% effective tax… |