Advance Auto Parts (NYSE:AAP) Releases 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.

Analyst Ratings Changes

AAP has been the subject of several analyst reports. JPMorgan Chase & Co. upped 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. Evercore ISI set a $60.00 price target on Advance Auto Parts in a research report on Wednesday. Royal Bank Of Canada lowered their price objective on shares of Advance Auto Parts from $60.00 to $57.00 and set a “sector perform” rating for the company in a research report on Wednesday, February 4th. Wells Fargo & Company lifted their price objective on shares of Advance Auto Parts from $40.00 to $50.00 and gave the company an “equal weight” rating in a research note on Wednesday. Finally, DA Davidson restated a “neutral” rating and issued a $47.00 target price on shares of Advance Auto Parts in a research note on Thursday, February 5th. Three equities research 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’s stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $51.41.

Advance Auto Parts Stock Up 1.1%

Shares of NYSE:AAP opened at $58.88 on Friday. The firm has a market cap of $3.53 billion, a PE ratio of 80.66 and a beta of 1.14. The company has a fifty day simple moving average of $45.86 and a 200 day simple moving average of $52.34. The company has a current ratio of 1.73, a quick ratio of 0.88 and a debt-to-equity ratio of 1.55. Advance Auto Parts has a 12-month low of $28.89 and a 12-month high of $70.00.

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

Advance Auto Parts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, April 24th. Shareholders of record on Friday, April 10th will be paid a dividend of $0.25 per share. The ex-dividend date is Friday, April 10th. This represents a $1.00 annualized dividend and a yield of 1.7%. Advance Auto Parts’s dividend payout ratio is presently -15.90%.

More Advance Auto Parts News

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

• Positive Sentiment: Q4 beat on EPS and revenue — Advance reported $0.86 EPS vs. $0.41 expected and $1.973B in sales vs. ~$1.95B consensus, marking a swing to profitability vs. prior year losses. BusinessWire: Q4 results & guidance
• Positive Sentiment: Margins and turnaround signs — Management highlighted margin recovery and narrowing losses; several writeups note improving profitability and execution on the restructuring plan. Barron’s: Turnaround continues
• Positive Sentiment: Comparable sales returned to positive growth, supporting the narrative that the turnaround is gaining traction. Seeking Alpha: Comparable sales growth
• Positive Sentiment: Board declared a quarterly cash dividend of $0.25/share (paid April 24; ex‑dividend April 10), a sign of confidence in cash generation. Seeking Alpha: Dividend announcement
• Neutral Sentiment: 2026 guidance is mixed — management gave an EPS range of $2.40–$3.10 (around Street expectations) but set revenue guidance slightly below consensus ($8.5–8.6B vs. ~$8.7B), making the outlook balanced between optimism on margins and caution on top‑line recovery. Yahoo Finance: Beats and guidance
• Neutral Sentiment: Analyst stance remains cautious — William Blair kept a Hold rating, saying early turnaround progress is encouraging but not yet enough to upgrade. Watch for further analyst revisions. TipRanks: Hold rating
• Negative Sentiment: Revenue weakness and store closures — Q4 revenue was down ~1.2% year‑over‑year and the company continues to close stores as part of restructuring, a drag on top‑line growth despite profit improvement. WSJ: Profit amid store closures

Institutional Investors Weigh In On Advance Auto Parts

Several institutional investors and hedge funds have recently made changes to their positions in the company. Federated Hermes Inc. boosted its holdings in Advance Auto Parts by 4.4% in the fourth quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company’s stock worth $110,499,000 after purchasing an additional 117,648 shares during the period. State Street Corp raised its holdings in shares of Advance Auto Parts by 3.9% during the fourth quarter. State Street Corp now owns 2,499,981 shares of the company’s stock worth $98,249,000 after purchasing an additional 92,861 shares during the period. Maple Rock Capital Partners Inc. lifted its position in shares of Advance Auto Parts by 508.2% in the 3rd quarter. Maple Rock Capital Partners Inc. now owns 951,790 shares of the company’s stock worth $58,440,000 after buying an additional 795,290 shares during the last quarter. Bank of America Corp DE boosted its holdings in shares of Advance Auto Parts by 6.5% in the 2nd quarter. Bank of America Corp DE now owns 947,754 shares of the company’s stock valued at $44,061,000 after buying an additional 57,900 shares during the period. Finally, Marshall Wace LLP grew its position in shares of Advance Auto Parts by 5.6% during the 3rd quarter. Marshall Wace LLP now owns 898,745 shares of the company’s stock valued at $55,183,000 after buying an additional 47,992 shares during the last quarter. 88.70% of the stock is owned by institutional investors and hedge funds.

About Advance Auto Parts

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.