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

Advance Auto Parts (NYSE:AAP) updated its FY 2026 earnings guidance on Friday. The company provided earnings per share guidance of 2.400-3.10 for the period, compared to the consensus earnings per share estimate of 2.650. The company issued revenue guidance of $8.5 billion-$8.6 billion, compared to the consensus revenue estimate of $8.7 billion.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on AAP. TD Cowen lowered their price target on shares of Advance Auto Parts from $62.00 to $46.00 and set a “hold” rating for the company in a report on Tuesday, January 20th. DA Davidson reissued a “neutral” rating and issued a $47.00 price objective on shares of Advance Auto Parts in a research report on Thursday, February 5th. BMO Capital Markets restated a “market perform” rating and set a $55.00 target price on shares of Advance Auto Parts in a research note on Friday, October 31st. JPMorgan Chase & Co. lifted their target price on Advance Auto Parts from $44.00 to $62.00 and gave the stock a “neutral” rating in a research report on Friday, October 31st. Finally, Wells Fargo & Company increased their price target on Advance Auto Parts from $40.00 to $50.00 and gave the company an “equal weight” rating in a report on Wednesday. Three investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $51.41.

Advance Auto Parts Stock Up 3.5%

Shares of AAP traded up $2.01 during midday trading on Friday, hitting $60.23. The company had a trading volume of 2,082,509 shares, compared to its average volume of 2,048,055. The stock has a market cap of $3.62 billion, a price-to-earnings ratio of -9.62 and a beta of 1.14. The company’s 50 day moving average price is $45.73 and its 200 day moving average price is $52.36. The company has a quick ratio of 0.88, a current ratio of 1.73 and a debt-to-equity ratio of 1.55. Advance Auto Parts has a 52 week low of $28.89 and a 52 week high of $70.00.

Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings results on Friday, February 13th. The company reported $0.86 EPS for the quarter, topping analysts’ consensus estimates of $0.41 by $0.45. The business had revenue of $1.97 billion during the quarter, compared to the consensus estimate of $1.95 billion. Advance Auto Parts had a positive return on equity of 0.64% and a negative net margin of 4.37%.The company’s revenue for the quarter was down 1.2% compared to the same quarter last year. During the same period last year, the firm earned ($10.16) earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. On average, equities research analysts predict that Advance Auto Parts will post -0.46 EPS for the current year.

Key Advance Auto Parts News

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: Q4 beat — AAP reported EPS of $0.86 vs. consensus $0.41 and revenue of $1.97B vs. $1.95B; the company swung to a profit from a large loss a year earlier, underscoring the impact of cost actions and margin recovery. Business Wire: Advance Auto Parts Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Dividend announced — the company declared a $0.25 per-share dividend, adding a direct shareholder-return element that can support sentiment. Advance Auto Parts declares $0.25 dividend
• Positive Sentiment: Market reaction / momentum — coverage notes the stock “jumped” on the results and commentary, reflecting investor confidence that the turnaround and restructuring are starting to show through in results. Advance Auto Parts Stock Jumps After Earnings. The Turnaround Continues.
• Neutral Sentiment: FY26 guidance is mixed — management set EPS guidance of $2.40–$3.10 (consensus ≈ $2.65) and revenue guidance of $8.5B–$8.6B (below the ~ $8.7B street estimate). The EPS range leaves upside potential but revenue guidance is slightly conservative. Business Wire: Advance Auto Parts Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Analyst activity — several analysts revised forecasts ahead of the call and previews expected a beat given AAP’s track record; this sets up further moves depending on quarterly-call color. Advance Auto Parts Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call
• Negative Sentiment: Top-line pressure and store closures — revenue was down ~1.2% YoY and management is continuing to close stores as part of restructuring, which helps margins but reduces sales volume; that keeps growth questions alive. Advance Auto Swings to a Profit Amid Store Closures
• Negative Sentiment: Profitability still uneven — despite the quarter’s profit, trailing metrics show a negative net margin and modest return on equity, signaling the turnaround isn’t complete and future quarters will need consistent execution. Advance Auto Parts Earnings Report & Materials

Hedge Funds Weigh In On Advance Auto Parts

Hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada boosted its position in Advance Auto Parts by 107.2% during the 1st quarter. Royal Bank of Canada now owns 79,558 shares of the company’s stock worth $3,119,000 after acquiring an additional 41,157 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Advance Auto Parts by 327.7% during the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company’s stock valued at $14,230,000 after purchasing an additional 278,066 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Advance Auto Parts by 14.6% in the first 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 lifted its holdings in Advance Auto Parts by 3.1% in the second quarter. Hsbc Holdings PLC now owns 6,306 shares of the company’s stock worth $293,000 after purchasing an additional 191 shares during the period. Finally, Baird Financial Group Inc. grew its position in 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 in the last quarter. 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.