O‘Reilly Automotive Inc (ORLY.O): EPS Recap – Sticking to the Organic Playbook; July Strength Shows Resilient Demand

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O‘Reilly Automotive Inc (ORLY.O): EPS Recap – Sticking to the Organic Playbook; July Strength Shows Resilient Demand

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31 Jul 2026 03:00:00 ET │ 15 pages

O'Reilly Automotive Inc (ORLY.O)

EPS Recap – Sticking to the Organic Playbook; July Strength Shows

Resilient Demand

CITI'S TAKE

ORLY’s 2Q print lacked material upside, but the fundamentals were Buy

consistently strong and street EPS estimates should still move slightly

higher off this print. DIFM strength was resilient, July improvement showed Price (30 Jul 26 16:00) US$87.36

the softer May-June trend was due to lack of hot weather to start summer Target price US$106.00↑

(not softer industry trends), and the margin path is on track for the 2H.

from US$104.00Mgmt.’s clear commentary on the earnings call regarding the organic

playbook to growth removes any overhang from speculative M&A Expected share price return 21.3%

distractions. Simply put, there is no complex disruptive acquisition Expected dividend yield 0.0%

happening here. Ultimately, ORLY remains the premier operator in the auto

Expected total return 21.3%parts retail space. The next catalyst is ORLY’s Investor Day in Atlanta on 9/17.

We view share price weakness as a compelling buying opportunity for the Market Cap US$71,300M

best positioned share gainer in the sector. Reiterate Buy.

Key Takes from the Call/1x1 IR Callback — 1) Same SKU Inflation: Same SKU

inflation of 5.5% was in-line with expectations. The 2H is expected to see 1-2% same Price Performance

SKU inflation with 3Q > 4Q. 2) July Saw Strong Start: Mgmt. saw a strong start to (RIC: ORLY.O, BB: ORLY US)

3Q in July after a period in June that did not see the typical ramp up in demand from

hot-weather categories. 3) Napa Acquisition Off the Table: Mgmt. explicitly stated