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Research Alert: Advance Auto Parts: Q1 Well Ahead Of Expectations; 2026 Guidance Maintained

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CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Advance Auto Parts (AAP) posted Q1 adjusted EPS of $0.77 vs. -$0.22, well ahead of the $0.43 consensus. The beat was attributable to stronger-than-expected sales and margins, as revenue rose 1.2% to $2.61B ($40M ahead of consensus) on a 3.5% increase in same-store-sales (140 bps ahead of consensus), which was AAP's strongest growth rate in five years. Gross margin expanded 220 bps to 45.1% (40 bps above consensus), owing to merchandising initiatives and cycling past headwinds. The company maintained 2026 adjusted EPS guidance of $2.40-$3.10, the midpoint ($2.75) of which is slightly short of the current consensus of $2.80 and up from the $2.26 earned in 2025. AAP shares are currently trading 9% higher in the pre-market. Recent results from other aftermarket retailers have indicated a much stronger-than-expected demand environment to start the year, with SSS coming in well above expectations, which we think is partially due to strong used vehicle demand (U.S. inventory days' supply hit a record low in March).

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