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

Advance Auto Parts (NYSE:AAP) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (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 Stock Performance

NYSE AAP opened at $56.35 on Thursday. The stock has a fifty day simple moving average of $57.30 and a 200-day simple moving average of $55.47. The company has a current ratio of 1.78, a quick ratio of 0.85 and a debt-to-equity ratio of 1.54. The stock has a market cap of $3.40 billion, a PE ratio of 78.26, a P/E/G ratio of 0.94 and a beta of 1.03. Advance Auto Parts has a twelve month low of $37.89 and a twelve 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 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.81 by $0.22. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The firm had revenue of $2 billion for the quarter, compared to analyst estimates of $2.04 billion. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. Equities analysts anticipate that Advance Auto Parts will post 2.94 earnings per share for the current year.

Analysts Set New Price Targets

Several equities analysts have recently commented on the stock. Royal Bank Of Canada upped their price objective on shares of Advance Auto Parts from $65.00 to $67.00 and gave the stock a “sector perform” rating in a report on Thursday, August 13th. TD Cowen reissued a “hold” rating on shares of Advance Auto Parts in a research report on Friday, May 22nd. Weiss Ratings upgraded Advance Auto Parts from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Friday, May 29th. Deutsche Bank Aktiengesellschaft upgraded Advance Auto Parts to a “buy” rating in a research report on Friday, May 22nd. Finally, Wells Fargo & Company lifted their price objective on Advance Auto Parts from $50.00 to $60.00 and gave the company an “equal weight” rating in a research note on Friday, May 22nd. Two analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Advance Auto Parts has an average rating of “Hold” and an average target price of $58.91.

Key Advance Auto Parts News

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

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors have recently modified their holdings of AAP. Royal Bank of Canada boosted its holdings in Advance Auto Parts by 107.2% in the first quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock valued at $3,119,000 after purchasing an additional 41,157 shares during the period. Goldman Sachs Group Inc. increased its holdings in Advance Auto Parts by 327.7% during the 1st 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 period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Advance Auto Parts by 14.6% during the 1st 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 period. Hsbc Holdings PLC raised its position in Advance Auto Parts by 3.1% in the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock valued at $293,000 after purchasing an additional 191 shares in the last quarter. Finally, Baird Financial Group Inc. boosted its stake in shares of Advance Auto Parts by 2.7% in the 2nd quarter. Baird Financial Group Inc. now owns 56,782 shares of the company’s stock valued at $2,640,000 after buying an additional 1,515 shares during the period. 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.