O'Reilly Automotive, Inc. stock research
FY2025 Q3
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to the prior quarter, and gross profit rose at a faster pace than cost of revenue, leading to a higher gross margin. The same relationship held when comparing with the year-ago quarter, as gross margin improved slightly.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to the prior quarter, and gross profit rose at a faster pace than cost of revenue, leading to a higher gross margin. The same relationship held when comparing with the year-ago quarter, as gross margin improved slightly.
- The strongest observable driver of the gross margin change is the difference between the growth rates of revenue and cost of revenue. Revenue grew while cost of revenue increased by a smaller proportion, expanding the margin.
- Sequentially, gross margin improved from the previous quarter. Compared with the same quarter one year earlier, gross margin was also higher, though the change was modest.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.9%
Gross profit
$2.4B
Revenue
$4.7B
Cost of revenue
$2.3B
Quarter-over-quarter change
+0.4 pts
Year-over-year change
+0.3 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $4.1B | $2.1B | $2.0B | 51.3% |
| Mar 31, 2025 | $4.1B | $2.1B | $2.0B | 51.3% |
| Jun 30, 2025 | $4.5B | $2.3B | $2.2B | 51.4% |
| Sep 30, 2025 | $4.7B | $2.4B | $2.3B | 51.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
+0.4 pts
Year-over-year change
Sep 30, 2024
+0.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change is the difference between the growth rates of revenue and cost of revenue. Revenue grew while cost of revenue increased by a smaller proportion, expanding the margin.
Sequentially, gross margin improved from the previous quarter. Compared with the same quarter one year earlier, gross margin was also higher, though the change was modest.
Monitor the relationship between revenue growth and cost of revenue growth in future quarters to assess whether the margin expansion can be sustained.