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

Advance Auto Parts (NYSE:AAP) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share guidance of 2.400-3.100 for the period, compared to the consensus earnings per share 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 Trading Down 1.7%

AAP opened at $57.63 on Friday. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.87. The company has a market cap of $3.48 billion, a price-to-earnings ratio of 80.04, a price-to-earnings-growth ratio of 1.03 and a beta of 1.06. The firm has a 50 day simple moving average of $53.93 and a 200 day simple moving average of $50.42. Advance Auto Parts has a fifty-two week low of $37.89 and a fifty-two week high of $70.00.

Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings results on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, topping analysts’ consensus estimates of $0.39 by $0.38. The business had revenue of $2.61 billion during the quarter, compared to the consensus estimate of $2.05 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. Advance Auto Parts’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.40 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. On average, sell-side analysts anticipate that Advance Auto Parts will post 2.75 earnings per share for the current year.

Advance Auto Parts Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Shareholders of record on Friday, July 10th will be paid a $0.25 dividend. This represents a $1.00 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend is Friday, July 10th. Advance Auto Parts’s dividend payout ratio is presently 136.99%.

Analyst Ratings Changes

Several equities research analysts have commented on AAP shares. Citigroup upped their target price on shares of Advance Auto Parts from $57.00 to $60.00 and gave the company a “neutral” rating in a research note on Friday. BMO Capital Markets upped their target price on shares of Advance Auto Parts from $60.00 to $65.00 and gave the company a “market perform” rating in a research note on Friday. Wells Fargo & Company upped their target price on shares of Advance Auto Parts from $50.00 to $60.00 and gave the company an “equal weight” rating in a research note on Friday. Evercore set a $60.00 target price on shares of Advance Auto Parts in a research note on Wednesday, February 11th. Finally, JPMorgan Chase & Co. lowered their target price on shares of Advance Auto Parts from $64.00 to $59.00 and set a “neutral” rating for the company in a research note on Friday, May 15th. Two equities research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $57.15.

Key Headlines Impacting Advance Auto Parts

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

• Positive Sentiment: Advance Auto Parts posted Q1 EPS of $0.77 versus $0.39 expected and revenue of $2.61 billion versus $2.57 billion expected, signaling a solid earnings beat. Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance
• Positive Sentiment: Comparable store sales rose 3.5%, driven by strength in the Pro business and improving DIY demand, while gross margin and operating margin expanded sharply, supporting the recovery narrative. Advance Auto Parts Gets Sales Boost From Pro Business
• Positive Sentiment: Several firms lifted price targets after the results, including Morgan Stanley, UBS, RBC, BMO Capital Markets, and Citigroup, reflecting improved sentiment around AAP’s recovery path. Advance Auto Parts Analysts Raise Their Forecasts Following Better-Than-Expected Q1 Results
• Neutral Sentiment: Management reaffirmed full-year 2026 guidance rather than raising it, which may temper enthusiasm even after the strong quarter. Advance Auto Q1 Earnings Beat Estimates on Strong Comps Growth
• Neutral Sentiment: Shareholders approved directors and governance matters at the annual meeting, a routine corporate update with limited immediate stock impact. Advance Auto Parts Shareholders Approve Directors and Governance Matters

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Royal Bank of Canada boosted its holdings in Advance Auto Parts by 107.2% during the first quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock worth $3,119,000 after purchasing an additional 41,157 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in Advance Auto Parts by 327.7% during the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock worth $14,230,000 after purchasing an additional 278,066 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its holdings in Advance Auto Parts by 14.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company’s stock worth $7,096,000 after purchasing an additional 23,018 shares during the last quarter. Hsbc Holdings PLC boosted its holdings in Advance Auto Parts by 3.1% during the second quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock worth $293,000 after purchasing an additional 191 shares during the last quarter. Finally, Baird Financial Group Inc. boosted its holdings in Advance Auto Parts by 2.7% during the second quarter. Baird Financial Group Inc. now owns 56,782 shares of the company’s stock worth $2,640,000 after purchasing an additional 1,515 shares during the last quarter. Institutional investors and hedge funds own 88.70% of the company’s stock.

Advance Auto Parts Company Profile

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.