Advance Auto Parts beats Q1 estimates as comparable sales, margins, operating income, and guidance support turnaround progress.
Stock Earnings Results
May 21, 2026
Table of Contents
May 21, 2026
Advance Auto Parts, Inc. (NYSE: AAP) reported first-quarter 2026 results above expectations, supported by stronger comparable sales, margin expansion, improved operating income, and reaffirmed full-year guidance.
Advance Auto Parts is an automotive aftermarket parts retailer serving professional installers and do-it-yourself customers across North America.
The company reported adjusted EPS of $0.77, above estimates of $0.39, representing a 97.4% earnings surprise. Revenue came in at $2.61 billion, above estimates of $2.55 billion, with revenue growth of 1.2%.
Advance Auto Parts reported comparable sales growth of 3.5% in the first quarter.
Management said this was the company’s strongest comparable sales performance in five years, supported by mid-single-digit growth in the professional installer business and low-single-digit growth in DIY.
Gross profit was $1.2 billion, or 45.1% of net sales.
That was up from 42.9% in the prior-year quarter. The improvement was driven by product margin expansion, merchandising initiatives, and the company cycling past margin pressure tied to its store optimization program.
Operating income was $69 million, or 2.6% of net sales, compared with an operating loss of $131 million in the prior-year quarter.
Adjusted operating income was $99 million, or 3.8% of net sales, compared with an adjusted operating loss of $8 million a year earlier. That represents a 410-basis-point adjusted operating margin expansion.
SG&A expenses fell as a percentage of sales.
Adjusted SG&A was 41.3% of net sales, compared with 43.2% in the prior-year period. The improvement was helped by stronger sales and the company cycling past costs from stores closed under its 2024 restructuring plan.
Advance Auto Parts reaffirmed its full-year 2026 guidance.
That likely helped investor confidence because the company showed improving sales, stronger margins, and better operating performance while staying on track with its strategic priorities.
Investors are likely to watch whether Advance Auto Parts can sustain margin recovery and sales momentum.
The key areas are:
Advance Auto Parts delivered a strong turnaround quarter.
The company beat earnings and revenue expectations, posted its strongest comparable sales growth in five years, expanded margins, and moved from an operating loss to operating profit. The next test is whether management can keep improving asset productivity and margins through the rest of 2026.
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