"Comparable sales grew by 3.5% in the first quarter, marking our strongest quarter of growth in 5 years."
— Shane O’Kelly
03Detailed Report
AAP
Company AAP
Period
Q1 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 23, 2026
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Executive Summary
Advance Auto Parts (AAP) delivered a solid QQ1 2026, underscored by a 3.5% comparable sales gain—the strongest quarterly growth in five years—driven chiefly by the Pro channel and Main Street Pro initiatives. Adjusted operating margin expanded by more than 400 basis points to 3.8%, supported by merchandising-driven product margin expansion and productivity gains. Management reaffirmed full-year 2026 guidance, highlighting a path toward a mid-to-high single-digit adjusted operating margin trajectory and a gross margin around 45%, aided by Merchandising initiatives and supply chain productivity improvements post-DC consolidation. The company is actively investing in store-front enhancements, a modernized DIY loyalty program (Advance Rewards), a refreshed front-room assortment, and the ARGOS brand, along with a scalable market hub network intended to improve parts availability and speed to market.
Key Performance Indicators
Revenue
Increasing
2.61B
QoQ: 32.49% | YoY: 1.20%
Gross Profit
Increasing
1.18B
45.14% margin
QoQ: 35.79% | YoY: 6.40%
Operating Income
Increasing
69.00M
QoQ: 1.47% | YoY: 630.77%
Net Income
Stable
24.00M
QoQ: 300.00% | YoY: 0.00%
EPS
Stable
0.40
QoQ: 300.00% | YoY: 0.00%
Revenue Trend
Margin Analysis
Financial Highlights
QQ1 2026 revenue of $2.614B, up 1.2% year over year; quarter benefited from 16-week period vs. prior; gross profit of $1.18B and gross margin of 45.14%; adjusted operating income of $99M and adjusted operating margin of 3.8%; net income of $24M and diluted EPS of $0.39; LIFO expense headwind of $17M partially offset by = margin tailwinds; cash and liquidity remain robust with roughly $3.0B in cash; net debt of $2.27B and net debt/EBITDA around the targeted ~2.4x; inventory up ~5% YoY to support broader product depth; full-year net sales guidance of approximately $8.5B with 1-2% comp growth and 2-3% SKU inflation; capex guidance around $300M; 40-45 new stores and 10-15 market hubs planned in 2026; free cash flow guidance of about $100M.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.61B
1.20%
32.49%
Gross Profit
1.18B
6.40%
35.79%
Operating Income
69.00M
630.77%
1.47%
Net Income
24.00M
0.00%
300.00%
EPS
0.40
0.00%
300.00%
Key Financial Ratios
Management Insights Available for Members
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