How does O'Reilly Automotive (ORLY) make money?

O'Reilly Automotive (ORLY) generates revenue primarily from Automotive Aftermarket Parts Segment, which accounted for 100% of total revenue in TTM through Q1 2026. The company reported $18.21B in revenue and converted 14.3% of it into net profit, equivalent to roughly $2.60B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of O'Reilly Automotive (ORLY)?

O'Reilly Automotive (ORLY) reported a gross profit margin of 51.6% in TTM through Q1 2026, equivalent to $9.40B in gross profit on $18.21B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of O'Reilly Automotive (ORLY)?

O'Reilly Automotive (ORLY) reported an operating profit margin of 19.6% in TTM through Q1 2026, equivalent to $3.56B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of O'Reilly Automotive (ORLY)?

O'Reilly Automotive (ORLY) reported a net profit margin of 14.3% in TTM through Q1 2026, equivalent to $2.60B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is O'Reilly Automotive (ORLY) profitable?

Yes. O'Reilly Automotive (ORLY) reported $2.60B in net income for TTM through Q1 2026, with a net profit margin of 14.3%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does O'Reilly Automotive (ORLY) spend on capital expenditures?

O'Reilly Automotive (ORLY) spent $1.13B on capital expenditures (CapEx) during TTM through Q1 2026, roughly 6.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does O'Reilly Automotive (ORLY) generate?

O'Reilly Automotive (ORLY) generated $1.91B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 10.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of O'Reilly Automotive (ORLY)?

O'Reilly Automotive (ORLY) had an effective tax rate of 21.9% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

How O'Reilly Automotive Makes Money: 2026 Visual Revenue Map

O'Reilly Automotive (ORLY) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 8, 2026).

O'Reilly Automotive discloses geographic revenue only in annual filings. to view the full breakdown.

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Data & methodology

O'Reilly Automotive (ORLY) Key Financials

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Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

ORLY Overview

Counters

Revenue Counter$577.30/s
Earnings Counter$82.57/s
Economic Scale> Moldova

Income Statement

How It Makes Money
Income Statement Waterfall
Profit Bridge

Cash Flow

Cash Flow Waterfall
Free Cash Flow Bridge

Capital Return

Buybacks3.18% TTM
Stock Split History4 splits

Forecast & Valuation

Price Target Scenarios
Estimates$0.70 EPS
Fair Value
What If Invested
Stock Seasonality
Daily Price Character47.9% win rate