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

Advance Auto Parts (NYSE:AAP) updated its FY 2026 earnings guidance on Friday. The company provided EPS guidance of 2.400-3.10 for the period, compared to the consensus EPS 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 analysts have weighed in on AAP shares. DA Davidson reaffirmed a “neutral” rating and set a $47.00 target price on shares of Advance Auto Parts in a research note on Thursday, February 5th. Evercore reduced their price objective on Advance Auto Parts from $58.00 to $56.00 and set an “in-line” rating on the stock in a research report on Tuesday, December 16th. Citigroup upgraded Advance Auto Parts from a “hold” rating to a “buy” rating in a research report on Wednesday, January 21st. Northcoast Research upgraded shares of Advance Auto Parts from a “neutral” rating to a “buy” rating and set a $55.00 price target for the company in a research report on Wednesday, January 21st. Finally, Wells Fargo & Company raised their price target 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. Three investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $51.41.

Advance Auto Parts Trading Up 1.1%

Shares of NYSE:AAP traded up $0.66 during mid-day trading on Friday, hitting $58.88. The company had a trading volume of 5,146,161 shares, compared to its average volume of 1,991,563. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.73 and a quick ratio of 0.88. Advance Auto Parts has a one year low of $28.89 and a one year high of $70.00. The firm has a fifty day moving average price of $45.86 and a 200 day moving average price of $52.37. The company has a market capitalization of $3.53 billion, a PE ratio of -9.36 and a beta of 1.14.

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. Advance Auto Parts had a negative net margin of 4.37% and a positive return on equity of 0.64%. The business had revenue of $1.97 billion during the quarter, compared to analysts’ expectations of $1.95 billion. During the same period last year, the company posted ($10.16) earnings per share. The business’s quarterly revenue was down 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.10 EPS. As a group, research analysts forecast that Advance Auto Parts will post -0.46 EPS for the current year.

Advance Auto Parts Announces Dividend

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

Key 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 Inflows and Outflows

Large investors have recently modified their holdings of the stock. Caitong International Asset Management Co. Ltd bought a new stake in Advance Auto Parts during the third quarter worth $31,000. Smartleaf Asset Management LLC boosted its holdings in Advance Auto Parts by 290.3% during the 2nd quarter. Smartleaf Asset Management LLC now owns 925 shares of the company’s stock worth $43,000 after acquiring an additional 688 shares during the last quarter. Headlands Technologies LLC bought a new stake in shares of Advance Auto Parts in the 2nd quarter worth $101,000. Kestra Advisory Services LLC purchased a new stake in shares of Advance Auto Parts in the fourth quarter valued at about $107,000. Finally, LGT Financial Advisors LLC purchased a new stake in shares of Advance Auto Parts in the third quarter valued at about $123,000. Institutional investors 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.