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 2.600-3.300 for the period, compared to the consensus EPS 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 Price Performance

NYSE AAP opened at $42.85 on Friday. The firm’s fifty day simple moving average is $56.58 and its two-hundred day simple moving average is $55.35. The firm has a market capitalization of $2.59 billion, a P/E ratio of 31.28, a P/E/G ratio of 0.71 and a beta of 1.03. The company has a current ratio of 1.75, a quick ratio of 0.85 and a debt-to-equity ratio of 1.50. Advance Auto Parts has a 12-month low of $37.89 and a 12-month high of $65.21.

Advance Auto Parts (NYSE:AAP) last issued its quarterly earnings data on Thursday, August 20th. The company reported $1.03 EPS for the quarter, beating the consensus estimate of $0.81 by $0.22. The firm had revenue of $2 billion during the quarter, compared to analyst estimates of $2.04 billion. Advance Auto Parts had a return on equity of 9.84% and a net margin of 0.97%.The business’s revenue for the quarter was down .5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.69 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. Analysts forecast that Advance Auto Parts will post 2.9 EPS for the current fiscal year.

Advance Auto Parts Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 23rd. Investors of record on Friday, October 9th will be given a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Friday, October 9th. Advance Auto Parts’s dividend payout ratio is currently 72.99%.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. UBS Group lowered their price target on Advance Auto Parts from $65.00 to $47.00 and set a “neutral” rating for the company in a report on Friday. Deutsche Bank Aktiengesellschaft upgraded shares of Advance Auto Parts to a “buy” rating in a report on Friday, May 22nd. DA Davidson decreased their price objective on shares of Advance Auto Parts from $58.00 to $48.00 and set a “neutral” rating for the company in a research report on Friday. Wells Fargo & Company lowered their target price on shares of Advance Auto Parts from $60.00 to $50.00 and set an “equal weight” rating for the company in a research note on Friday. Finally, TD Cowen dropped their target price on shares of Advance Auto Parts from $61.00 to $45.00 and set a “hold” rating on the stock in a research report on Thursday. Two analysts have rated the stock with a Buy rating, nineteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Advance Auto Parts has a consensus rating of “Hold” and a consensus target price of $50.80.

More Advance Auto Parts News

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

• Positive Sentiment: Adjusted earnings beat expectations. Advance Auto Parts reported second-quarter adjusted EPS of $1.03, above the $0.81 consensus estimate and up from $0.69 a year earlier. The company also raised its FY2026 adjusted EPS guidance to $2.60–$3.30, while maintaining its sales outlook. Advance Auto Parts Analysts Cut Their Forecasts After Q2 Results
• Positive Sentiment: Margins and balance-sheet metrics improved. A $26 million tariff refund helped support quarterly margins, while gross margin expanded to 46.2% from 43.5% a year earlier. Advance also reduced net leverage to 2.1x from 2.4x and repaid approximately $30 million of debt. Advance Auto Parts Rebounds After Tariff Refund Boosts Q2 Margins
• Neutral Sentiment: Analyst targets remain mixed. JPMorgan lowered its target to $55, Morgan Stanley and RBC each moved to $52, and Citigroup cut its target to $45; all maintained neutral or equivalent ratings. These targets imply upside from recent levels, but Goldman Sachs reduced its target to $40 and assigned a Sell rating. Benzinga analyst updates
• Neutral Sentiment: The dividend provides shareholder support. Advance Auto Parts declared a quarterly dividend of $0.25 per share, with payment scheduled for October 23 to shareholders of record on October 9. The dividend yield is approximately 2.4%.
• Negative Sentiment: Sales momentum remains the main concern. Second-quarter revenue of approximately $2.0 billion missed estimates near $2.04 billion, while comparable-store sales declined 0.5%. Weak demand from cost-conscious, lower-income do-it-yourself customers and a volatile spending environment raised concerns about the pace of sales acceleration and required reinvestment. Advance Auto Parts Posts Disappointing Q2 Comparable Sales
• Negative Sentiment: Broad target reductions underscore execution risk. Goldman Sachs’s Sell rating and Bank of America’s reiterated Sell/Underperform view highlight concerns over weak DIY demand and the company’s ability to execute its turnaround, even after the earnings beat. Bank of America Reiterates Sell Rating

Institutional Trading of Advance Auto Parts

Large investors have recently made changes to their positions in the business. Caitong International Asset Management Co. Ltd purchased a new position in shares of Advance Auto Parts during the third quarter worth $31,000. Smartleaf Asset Management LLC raised its stake in shares of Advance Auto Parts by 290.3% during the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock valued at $43,000 after buying an additional 688 shares during the last quarter. Headlands Technologies LLC purchased a new position in shares of Advance Auto Parts during the 2nd quarter valued at about $101,000. Kestra Advisory Services LLC acquired a new position in shares of Advance Auto Parts in the 4th quarter valued at about $107,000. Finally, LGT Financial Advisors LLC acquired a new position in shares of Advance Auto Parts in the 3rd quarter valued at about $123,000. 88.70% of the stock is owned by hedge funds and other institutional investors.

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.