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

Advance Auto Parts (NYSE:AAP) updated its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 2.600-3.300 for the period, compared to the consensus earnings per share 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.

Advance Auto Parts Stock Performance

NYSE:AAP opened at $56.35 on Thursday. The company has a quick ratio of 0.85, a current ratio of 1.78 and a debt-to-equity ratio of 1.54. Advance Auto Parts has a twelve month low of $37.89 and a twelve month high of $65.21. The company has a fifty day moving average of $57.30 and a 200-day moving average of $55.47. The firm has a market capitalization of $3.40 billion, a P/E ratio of 78.26, a P/E/G ratio of 0.94 and a beta of 1.03.

Advance Auto Parts (NYSE:AAP) last issued its earnings results on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.22. The business 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. As a group, sell-side analysts anticipate that Advance Auto Parts will post 2.94 EPS for the current year.

Analyst Ratings Changes

A number of brokerages recently commented on AAP. Citigroup decreased their target price on Advance Auto Parts from $60.00 to $57.00 and set a “neutral” rating for the company in a research report on Thursday, August 13th. Weiss Ratings raised shares of Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, May 29th. Mizuho lifted their target price on Advance Auto Parts from $54.00 to $58.00 and gave the company a “neutral” rating in a research report on Tuesday, May 26th. The Goldman Sachs Group increased their target price on shares of Advance Auto Parts from $49.00 to $54.00 and gave the company a “sell” rating in a report on Friday, May 22nd. Finally, Evercore set a $65.00 price objective on shares of Advance Auto Parts in a research note on Tuesday, August 4th. Two equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $58.91.

Key Headlines 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 Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. Caitong International Asset Management Co. Ltd bought a new stake in shares of Advance Auto Parts in the third quarter valued at approximately $31,000. Smartleaf Asset Management LLC increased its stake in Advance Auto Parts by 290.3% in the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock worth $43,000 after acquiring an additional 688 shares during the last quarter. Headlands Technologies LLC purchased a new stake in shares of Advance Auto Parts in the 2nd quarter valued at about $101,000. Kestra Advisory Services LLC purchased a new position in shares of Advance Auto Parts during the fourth quarter worth about $107,000. Finally, LGT Financial Advisors LLC bought a new position in shares of Advance Auto Parts in the third quarter worth approximately $123,000. Hedge funds and other institutional investors 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.