O'Reilly Automotive, Inc. stock research
FY2026 Q1
O'Reilly Automotive (ORLY) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was unchanged from the prior quarter but higher than a year ago, while cost of revenue rose relative to both periods, resulting in a gross margin that was slightly lower than the prior quarter but higher than the year-ago quarter.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit was unchanged from the prior quarter but higher than a year ago, while cost of revenue rose relative to both periods, resulting in a gross margin that was slightly lower than the prior quarter but higher than the year-ago quarter.
- The relationship between revenue and cost of revenue drove the gross margin change. Year-over-year, revenue grew faster than cost of revenue, improving margin; sequentially, cost of revenue grew at a similar pace to revenue, leaving gross profit unchanged and margin slightly lower.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased proportionally more than revenue. Compared to the same quarter one year earlier, gross margin improved as revenue grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.5%
Gross profit
$2.3B
Revenue
$4.6B
Cost of revenue
$2.2B
Quarter-over-quarter change
-0.3 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $4.6B | $2.3B | $2.2B | 51.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.3 pts
Year-over-year change
Mar 31, 2025
+0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue drove the gross margin change. Year-over-year, revenue grew faster than cost of revenue, improving margin; sequentially, cost of revenue grew at a similar pace to revenue, leaving gross profit unchanged and margin slightly lower.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased proportionally more than revenue. Compared to the same quarter one year earlier, gross margin improved as revenue grew faster than cost of revenue.
Monitor inventory levels, which increased from the prior quarter end as shown in the balance sheet.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| O'Reilly Automotive, Inc. (ORLY) | 51.5% |