O'Reilly Automotive, Inc. stock research
FY2025 Q4
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Dec 31, 2025
In the current quarter, revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin was slightly lower than the prior quarter and higher than the same quarter last year, reflecting the relationship between cost of revenue and revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
In the current quarter, revenue and gross profit both decreased from the prior quarter but increased compared to the same quarter last year. Gross margin was slightly lower than the prior quarter and higher than the same quarter last year, reflecting the relationship between cost of revenue and revenue.
- The strongest observable margin driver is the change in the proportion of cost of revenue to revenue. Sequentially, cost of revenue declined less than revenue, slightly compressing margin; year over year, revenue grew faster than cost of revenue, expanding margin.
- Compared to the prior quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.8%
Gross profit
$2.3B
Revenue
$4.4B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.5 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $4.4B | $2.3B | $2.1B | 51.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-0.1 pts
Year-over-year change
Dec 31, 2024
+0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in the proportion of cost of revenue to revenue. Sequentially, cost of revenue declined less than revenue, slightly compressing margin; year over year, revenue grew faster than cost of revenue, expanding margin.
Compared to the prior quarter, gross margin weakened slightly. Compared to the same quarter one year earlier, gross margin improved.
Monitor the trend in cost of revenue as a percentage of revenue, as small shifts can materially affect gross margin.