Advance Auto Parts (NYSE:AAP) Updates FY 2026 Earnings Guidance

Key Points

• Advance Auto Parts issued FY 2026 guidance of $2.60–$3.30 in EPS and $8.5–$8.6 billion in revenue, broadly aligning with analysts’ estimates.
• Second-quarter results beat expectations, with EPS of $1.03 versus the $0.81 consensus, while operating income and gross margin improved substantially and net leverage declined.
• Despite stronger profitability, comparable-store sales fell 0.5% and revenue came in below estimates, underscoring ongoing consumer-demand concerns; analysts maintain a consensus “Hold” rating with a $58.91 average price target.

Advance Auto Parts (NYSE:AAP - Get Free Report) updated its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 2.600-3.300 for the period, compared to the consensus estimate of 2.940. The company issued revenue guidance of $8.5 billion-$8.6 billion, compared to the consensus revenue estimate of $8.6 billion.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on AAP. Morgan Stanley lifted their price objective on Advance Auto Parts from $60.00 to $65.00 and gave the company an "equal weight" rating in a report on Friday, May 22nd. Royal Bank Of Canada boosted their target price on shares of Advance Auto Parts from $65.00 to $67.00 and gave the company a "sector perform" rating in a research report on Thursday, August 13th. The Goldman Sachs Group raised their price objective on Advance Auto Parts from $49.00 to $54.00 and gave the company a "sell" rating in a research note on Friday, May 22nd. TD Cowen reissued a "hold" rating on shares of Advance Auto Parts in a research note on Friday, May 22nd. Finally, Deutsche Bank Aktiengesellschaft upgraded shares of Advance Auto Parts to a "buy" rating in a research report on Friday, May 22nd. Two analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $58.91.

Advance Auto Parts Stock Down 1.1%

Shares of NYSE AAP opened at $56.35 on Thursday. The company has a 50 day simple moving average of $57.30 and a 200 day simple moving average of $55.47. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85. Advance Auto Parts has a 1 year low of $37.89 and a 1 year high of $65.21. The firm has a market cap of $3.40 billion, a PE ratio of 78.26, a price-to-earnings-growth ratio of 0.94 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its earnings results on Thursday, August 20th. The company reported $1.03 earnings per share for the quarter, topping analysts' consensus estimates of $0.81 by $0.22. The firm had revenue of $2 billion for the quarter, compared to analyst estimates of $2.04 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, research analysts forecast that Advance Auto Parts will post 2.94 EPS for the current year.

Key Stories Impacting Advance Auto Parts

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Second-quarter earnings were stronger than expected, with diluted EPS of $0.90 versus $0.25 a year earlier; another reported EPS measure was $1.03, above the $0.81 consensus estimate. Advance Auto Parts Reports $55 Million Second-Quarter Profit as Sales Hold at $2 Billion
• Positive Sentiment: Profitability improved materially: operating income rose to $101 million, or 5.1% of sales, from $22 million, or 1.1%, a year earlier, while gross margin expanded to 46.2% from 43.5%. The company also reduced net leverage to 2.1x from 2.4x and repurchased $30 million of debt principal. Advance Auto Parts Reports Second Quarter 2026 Results
• Neutral Sentiment: Advance Auto Parts reaffirmed its full-year 2026 sales guidance of $8.485 billion to $8.575 billion, offering some stability despite the weaker quarterly sales trend. Advance Auto Parts Reports $55 Million Second-Quarter Profit as Sales Hold at $2 Billion
• Negative Sentiment: Comparable-store sales fell 0.5% in the quarter, a surprise decline that investors viewed as evidence that consumers are cutting back on discretionary automotive purchases. Advance Auto Parts Stock Sinks After Earnings as Same-Store Sales Decline
• Negative Sentiment: Revenue was approximately $2.0 billion, below analysts’ $2.04 billion estimate. With a net margin of only 0.51%, the sales shortfall and continued pressure on demand remain important risks despite the earnings beat. Advance Auto Parts Earnings Results

Institutional Investors Weigh In On Advance Auto Parts

Institutional investors and hedge funds have recently made changes to their positions in the stock. Caitong International Asset Management Co. Ltd acquired a new stake in Advance Auto Parts during the 3rd quarter valued at approximately $31,000. Smartleaf Asset Management LLC raised its stake in Advance Auto Parts by 290.3% during the second quarter. Smartleaf Asset Management LLC now owns 925 shares of the company's stock worth $43,000 after buying an additional 688 shares during the last quarter. Headlands Technologies LLC acquired a new position in Advance Auto Parts in the second quarter valued at $101,000. Kestra Advisory Services LLC acquired a new stake in Advance Auto Parts during the 4th quarter worth about $107,000. Finally, LGT Financial Advisors LLC bought a new position in shares of Advance Auto Parts in the 3rd quarter worth about $123,000. Institutional investors and hedge funds own 88.70% of the company's stock.

About Advance Auto Parts

Advance Auto Parts, Inc NYSE: AAP is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company's product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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