Start here if you're new
what it is
O'Reilly sells the parts, tools, and basic services you need when your car breaks and you still have to get to work.
how it gets paid
Last year O'Reilly made $17.8B in revenue. U.S. stores was the main engine at $17.47B, or 98% of sales.
why it's growing
Revenue grew 6.4% last year. Gross margin at 51.5% matters most because it shows O'Reilly is still pricing parts well while keeping customers.
what just happened
The latest quarter was strong on paper, with EPS up 165% to $2.25.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
95/100 earnings predictability — you can trust these numbers
30.7x trailing p/e — you're paying up for this one
84.5% return on capital — a money-printing machine
xvary composite: 68/100 — average
What they do
O'Reilly sells the parts, tools, and basic services you need when your car breaks and you still have to get to work.
Its edge is boring and powerful. O'Reilly runs 6,378 stores, and that density puts parts close to your mechanic and your driveway. Return on capital (how much profit each dollar invested creates) was 84.5% — so what: this chain turns store shelves into cash far better than most retailers.
How they make money
$17.8B
annual revenue · their business grew +6.4% last year
U.S. stores
$17.47B
Mexico stores
$0.24B
Canada stores
$0.07B
Puerto Rico stores
$0.01B
The products that matter
serves retail drivers
DIY auto parts
~6,400 stores
Nationwide store density lets drivers solve a repair problem fast, and that convenience helps support a 51.5% gross margin.
core engine
supplies repair shops
Professional parts delivery
pro business standout
Management called this the standout business, and companywide comparable-store sales rose 5.6% in the september quarter with the pro side up more than 10%.
where growth is stronger
Key numbers
84.5%
return on capital
Return on capital → profit made on invested dollars → so what: O'Reilly squeezes elite returns from a very physical retail business.
23.5%
operating margin
Operating margin → profit after running the stores → so what: this is fat for retail and gives the company room when costs move.
30.7x
trailing p/e
P/E → how many dollars investors pay for one dollar of profit → so what: you are already paying up for quality.
$105
18-month target
That target is 16% above $90.58, which is decent but not huge for a stock priced at 30.7x earnings.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 2 — safer than 80% of stocks
- price stability 90 / 100
- long-term debt $5.9B (7% of capital)
- net profit margin 15.1% — keeps 15 cents of every dollar in revenue
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ORLY 3 years ago → it's now worth $16,290.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
The latest quarter was strong on paper, with EPS up 165% to $2.25.
Latest quarter revenue was about $4.5B (not $13.4B— that line was a mis-tagged total), with gross margin ~51.5% and sales growth versus the prior year in line with mid-single-digit company trends, not triple digits. EPS about $2.25; ignore stray ~$0.70 prints that do not match diluted EPS for the same quarter (feed/split noise).
$4.5B
quarter revenue
$2.25
eps
51.5%
gross margin
the number that mattered
Gross margin at 51.5% matters most because it shows O'Reilly is still pricing parts well while keeping customers.
-
management raised its 2025 outlook for o’reilly automotive in late october.
-
with the release of generally better-than-expected third-quarter results. leadership upped its key full-year targets for the missouri-based retailer and distributor of aftermarket autoparts.
-
importantly, comparable-store sales (css) are now seen rising between 4.0% and 5.0%, versus a previously anticipated 3.5%–4.0% advance and 2024’s 2.9% increase.
-
the professional parts business remains the stand out here.
-
for the company as a whole, css rose 5.6% in the recent september quarter, led by an increase of more than 10% within the business of supplying parts to thousands of auto shops, many more than once every business day.according to the company, the pro segment benefited from both higher order volume and industry-wide, tariff-related price increases. importantly, o’reilly appears to be gaining a decent amount of market share, thanks to investments that are reducing delivery times and limiting rare, out-of-stock situations.
source: company earnings report, 2026
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What could go wrong
the top risk is a slowdown in comparable-store sales after the recent pro-led strength.
high
professional business momentum fades
Management called the professional parts business the standout, with growth of more than 10% in the latest quarter. When the strongest piece slows, the premium narrative weakens with it.
If pro demand cools and comparable-store sales drift back toward 2.9%, a 30.7x earnings multiple gets harder to defend.
med
price competition from other parts chains
This is still a parts business. AutoZone, Advance, and smaller rivals can all fight on price, delivery, and local availability.
Even modest pressure on a 51.5% gross margin or 23.5% operating margin would matter because the stock is priced for steady execution.
med
fy2026 guidance disappoints
The next report matters less for the quarter that just ended than for what management says about FY2026. Expectations are now built around a $3.35 EPS estimate.
A lower earnings path would pressure both the estimate and the multiple at the same time.
med
repair demand normalizes
O'Reilly benefits when aging vehicles need more maintenance. If repair frequency or ticket size cools, a $17.8B revenue base becomes harder to grow at a 6.4% clip.
This is not a broken-business risk. It is a "great retailer turns back into a normal retailer" risk.
At 30.7x earnings, the market is assuming recent momentum is durable. A move from 5.6% comparable-store sales growth back toward 2.9%, or visible pressure on 23.5% operating margin, would test that assumption fast.
source: institutional data · regulatory filings · risk analysis
Pay attention to
calendar
Q4 2025 earnings release
February 4, 2026 after 3:30 p.m. The real tell is FY2026 guidance, not the backward-looking quarter.
metric
comparable-store sales pace
The latest quarter printed 5.6%, while the updated 2025 guide is 4.0%–5.0%. Watch whether demand stays above the guide or slips back toward 2024's 2.9%.
trend
professional business strength
The pro side grew more than 10% and was the standout. If that remains true, the growth story holds together.
risk
premium multiple tolerance
A 30.7x trailing P/E leaves less room for a merely fine quarter. This stock needs steadiness, not surprises.
Analyst rankings
earnings predictability
95 / 100
O'Reilly's results have been unusually consistent. in human-speak: analysts trust management to say roughly what will happen, then deliver something close to it.
risk rank
2
That puts it in the safer part of the market. You are not buying a rollercoaster here. You are buying execution risk at a premium price.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 774 buyers vs. 680 sellers in 3q2025. total institutional holdings: 0.7B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$78
$131
$91
current price
$105
target midpoint · +16% from current · 3-5yr high: $115 (+25% · 6% ann'l return)
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