Advance Auto Parts Q4 EPS $0.86 Beats Estimate, Guides $2.40–$3.10 for 2026
Advance Auto Parts reported Q4 adjusted EPS of $0.86 versus the $0.42 consensus on $1.973B revenue and 1.1% comparable store sales growth. Adjusted operating income swung to $73M (3.7% margin) from a $99M loss, and 2026 guidance calls for $2.40–$3.10 EPS with $8.485–$8.575B revenue.
1. Strong Q4 Results
Advance Auto Parts delivered adjusted Q4 EPS of $0.86 versus the $0.42 estimate on net sales of $1.973 billion, reflecting 1.1% comparable store sales growth. The quarter included an extra week that contributed about $132 million to net sales and added roughly $0.08 to EPS.
2. Margin Improvement
Adjusted gross profit rose to $900 million (44.2% of net sales) from $800 million (39.0%) a year earlier, while adjusted operating income flipped to $73 million (3.7% margin) from a $99 million loss, driven by cost efficiencies and restructuring actions. The company ended the period with $3.123 billion in cash and equivalents.
3. Store Optimization Impact
Under its 2024 Restructuring Plan, the company closed stores that accounted for $74 million in prior-year net sales as part of an optimization program aimed at improving profitability. Sales performance turned positive in the final eight weeks, signaling momentum in its core retail footprint.
4. 2026 Financial Outlook
For fiscal 2026, Advance Auto Parts forecasts adjusted EPS of $2.40 to $3.10 and net sales of $8.485 billion to $8.575 billion, slightly below the Street’s revenue estimate. The guidance implies comparable store sales growth of 1.0% to 2.0% and a planned improvement in adjusted operating income margin to 3.8%–4.5%.