O'Reilly’s professional growth supports expansion, while DIY and costs bear watching

Transcript intelligence

What changed

The company entered 2026 with a higher investment plan: capital expenditures are guided to $1.3–$1.4 billion, supporting 225–235 net new stores, distribution expansion, inventory investment, and technology initiatives. It also highlighted its first Canadian greenfield store and a transition in Mexico toward independent store sales.

Guidance delta

Management’s 2026 outlook calls for revenue of $18.7–$19.0 billion, comparable-store sales growth of 3%–5%, EPS of $3.10–$3.20, gross margin of 51.5%–52%, and capital expenditures of $1.3–$1.4 billion.

Key takeaways

• FY2025 sales reached $17.8 billion, with comparable-store sales up 4.7%, the high end of revised guidance.
• The professional business delivered more than 10% comparable-store sales growth, while DIY was flat to low single-digit growth.
• O'Reilly plans 225–235 net new stores in 2026 and is increasing investment in distribution, inventory, and technology.

Management priorities

• Accelerate new-store expansion in the United States, Mexico, and Canada.
• Complete and staff the Virginia distribution center and prepare the Fort Worth distribution center.
• Increase per-store inventory and invest in technology and operational efficiency.