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

Advance Auto Parts (NYSE:AAP) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided EPS guidance of 2.400-3.100 for the period, compared to the consensus EPS estimate of 2.790. 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 $58.59 on Friday. The firm’s fifty day moving average price is $53.84 and its 200 day moving average price is $50.37. Advance Auto Parts has a 1-year low of $37.89 and a 1-year high of $70.00. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87. The firm has a market cap of $3.53 billion, a price-to-earnings ratio of 80.26, a price-to-earnings-growth ratio of 0.90 and a beta of 1.06.

Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings data on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, beating analysts’ consensus estimates of $0.39 by $0.38. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The firm had revenue of $2.61 billion for the quarter, compared to analyst estimates of $2.57 billion. During the same period last year, the firm posted $0.40 EPS. Advance Auto Parts’s quarterly revenue was up 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. On average, sell-side analysts expect that Advance Auto Parts will post 2.77 EPS for the current year.

Advance Auto Parts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, July 24th. Investors of record on Friday, July 10th will be given a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date is Friday, July 10th. Advance Auto Parts’s dividend payout ratio (DPR) is 136.99%.

Analyst Upgrades and Downgrades

AAP has been the topic of a number of analyst reports. Wells Fargo & Company lifted their price objective on shares of Advance Auto Parts from $40.00 to $50.00 and gave the company an “equal weight” rating in a research report on Wednesday, February 11th. Morgan Stanley set a $60.00 target price on Advance Auto Parts in a report on Tuesday, February 17th. Deutsche Bank Aktiengesellschaft raised Advance Auto Parts to a “buy” rating in a report on Friday. JPMorgan Chase & Co. reduced their target price on Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating for the company in a report on Friday, May 15th. Finally, Evercore set a $60.00 target price on Advance Auto Parts in a report on Wednesday, February 11th. Two research analysts have rated the stock with a Buy rating, eighteen have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, Advance Auto Parts has a consensus rating of “Reduce” and an average price target of $53.09.

Advance Auto Parts News Summary

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

• Positive Sentiment: Advance Auto Parts posted adjusted EPS of $0.77 versus the $0.39 estimate and revenue of $2.61 billion versus $2.57 billion expected, a clear earnings and sales beat that helped drive the stock higher. Why Advance Auto Parts Stock Skyrocketed Today
• Positive Sentiment: The company reported its strongest same-store sales growth in five years, with comparable sales up 3.5%, including mid-single-digit growth in the Pro channel and low-single-digit growth in DIY, suggesting the core business is improving. Advance Auto Parts Gets Sales Boost From Pro Business
• Positive Sentiment: Margins expanded sharply, with adjusted operating margin rising to 3.8% from a year ago, which investors viewed as a sign that the turnaround is gaining traction and earnings power is improving. Highly Short Advance Auto Parts Warns On Consumer Spending
• Neutral Sentiment: Advance Auto Parts reaffirmed full-year 2026 guidance rather than raising it, with EPS guidance of $2.40 to $3.10 and revenue guidance of about $8.5 billion to $8.6 billion. That keeps expectations intact, but the lack of a guidance raise may limit some upside. Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance
• Neutral Sentiment: The company also declared a quarterly dividend of $0.25 per share, signaling continued shareholder returns, though this was not the main driver of the stock move.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Hsbc Holdings PLC raised its stake in shares of Advance Auto Parts by 3.1% during the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock worth $293,000 after buying an additional 191 shares during the last quarter. LPL Financial LLC raised its stake in shares of Advance Auto Parts by 2.0% during the 4th quarter. LPL Financial LLC now owns 19,410 shares of the company’s stock worth $763,000 after buying an additional 380 shares during the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in shares of Advance Auto Parts during the 3rd quarter worth $31,000. CANADA LIFE ASSURANCE Co raised its stake in shares of Advance Auto Parts by 1.0% during the 4th quarter. CANADA LIFE ASSURANCE Co now owns 53,936 shares of the company’s stock worth $2,119,000 after buying an additional 527 shares during the last quarter. Finally, California State Teachers Retirement System raised its stake in shares of Advance Auto Parts by 1.1% during the 2nd quarter. California State Teachers Retirement System now owns 55,187 shares of the company’s stock worth $2,566,000 after buying an additional 604 shares during the last quarter. 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.