Advance Auto Parts (AAP) Stock Jumps 8% After Crushing Q1 Earnings Estimates

TLDR

• AAP posted Q1 adjusted EPS of $0.77, beating the $0.43 analyst consensus by $0.34.
• Net sales came in at $2.61 billion, above the $2.57 billion estimate.
• Comparable-store sales rose 3.5% year over year — the company’s strongest comp performance in five years.
• Full-year adjusted EPS guidance midpoint of $2.75 came in below the analyst consensus of $2.80, pressuring the stock.
• AAP is up roughly 30% in 2026, recovering after four straight years of double-digit annual declines.

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Advance Auto Parts opened 2026 with its best comparable-store sales growth in five years, but a cautious full-year outlook quickly tempered the mood.

ADVANCE AUTO PARTS $AAP EARNINGS ARE OUT!
🟢 EPS: $0.77 | Est. $0.44
🟢 REV: $2.61B | Est. $2.57B
IMPLIED MOVE TODAY: ±14.37%!! pic.twitter.com/wdWD66A3fJ

— Schaeffer’s Investment Research (@schaeffers) May 21, 2026

The auto parts retailer reported Q1 adjusted earnings of $0.77 per share, well ahead of the $0.43 Wall Street had penciled in. Revenue came in at $2.61 billion versus a $2.57 billion estimate, with comparable-store sales up 3.5% year over year.

The stock jumped 8.5% in premarket trading on Thursday following the results. AAP is now up roughly 30% in 2026, bouncing back after sliding double digits every year from 2022 through 2025.

Advance Auto Parts, Inc., AAP

The Q1 beat was broad-based. The professional installer segment posted mid-single-digit comp growth, while the DIY side grew at a low-single-digit pace.

Gross profit margin improved to 45.1% from 42.9% a year ago. Adjusted operating income margin expanded 410 basis points year over year to 3.8%, helped by better product margins and the cycling of headwinds from the company’s 2024 store optimization program.

CEO Shane O’Kelly called it a “solid start” to the year, pointing to improved transaction volumes as evidence the team’s focus on customer service is starting to show up in the numbers.

Full-Year Guidance Falls Short

Despite the strong Q1, the full-year outlook gave investors pause. AAP reaffirmed its fiscal 2026 adjusted EPS guidance range of $2.40 to $3.10. The midpoint — $2.75 — sits just below the analyst consensus of $2.80. Revenue guidance of $8.49 billion to $8.58 billion was similarly in line but not ahead of expectations, with the $8.54 billion midpoint slightly below the $8.55 billion consensus.

Some reports flagged a 5.8% drop in the stock following the results, as the guidance disappointed despite the Q1 beat. The stock’s reaction on the day was mixed depending on the trading session.

For the full year, AAP expects comparable-store sales growth of 1% to 2% and plans to open 40 to 45 new locations.

Rivals See Little Benefit

Larger peers AutoZone and O’Reilly Automotive didn’t get much of a lift from the report. AutoZone was up about 2% in premarket trading, while O’Reilly was down 0.8%.

Company Declares Dividend

The company declared a quarterly dividend of $0.25 per share, payable July 24 to shareholders of record as of July 10.