NEW YORK — Advance Auto Parts Inc. (NYSE: AAP) shares jumped 19.63% to $61.30 in midday trading on Thursday, May 21, 2026, after the auto parts retailer reported first-quarter results that significantly exceeded expectations on comparable sales and profitability.
The company released its fiscal first-quarter 2026 financial results before the market open. Net sales totaled $2.6 billion, flat compared to the prior-year period that included sales from stores later closed as part of a restructuring plan. Comparable store sales increased 3.5%, marking the strongest performance in five years.
Adjusted operating income reached $99 million, or 3.8% of net sales, expanding 410 basis points year-over-year from a loss in the prior period. Adjusted diluted earnings per share came in at $0.77, compared to analyst estimates of approximately $0.44.
CEO Jim Greco described the quarter as a solid start. The company reaffirmed its full-year 2026 guidance, targeting comparable sales growth of 1.0% to 2.0% and adjusted operating income margin in the range of 3.8% to 4.5%.
The results reflect progress on Advance Auto Parts’ strategic initiatives, including store optimization, supply chain improvements and enhanced customer experience. The company has been executing a multi-year turnaround plan following challenges in recent years.
Trading volume surged on May 21 as the earnings reaction drew significant investor attention. The stock had been trading near $51 prior to the report, reflecting ongoing pressures in the automotive aftermarket sector amid economic uncertainty.
Advance Auto Parts operates more than 4,300 stores across North America under the Advance Auto Parts, Carquest and other banners. It serves both professional installers and do-it-yourself customers with a broad selection of parts, accessories and maintenance items.
The company has been streamlining operations, including closing underperforming locations as part of its 2024 restructuring plan. First-quarter 2025 net sales had included approximately $51 million from stores later closed.
Analysts had been cautiously optimistic ahead of the report. Evercore ISI raised its price target to $65 from $60 on May 18 while maintaining an In Line rating. Other firms monitored the company’s progress on margin expansion and comparable sales trends.
Advance Auto Parts reaffirmed its full-year 2026 capital expenditure guidance of approximately $300 million and free cash flow target of approximately $100 million. The company ended the quarter with a solid liquidity position.
The automotive aftermarket industry faces headwinds from aging vehicles, supply chain dynamics and consumer spending patterns. Advance Auto Parts has emphasized value offerings and professional customer growth to navigate the environment.
No changes were announced to leadership or strategic direction in the earnings release. The company continues under CEO Jim Greco, who has focused on operational discipline and customer-centric improvements.
The stock’s sharp rise on May 21 reflected relief among investors after several quarters of mixed performance. Market capitalization increased substantially intraday as shares climbed toward recent highs.
Conference call participants included CEO Jim Greco and other executives. The call, scheduled for 8 a.m. ET, provided additional context on performance metrics and outlook.
Advance Auto Parts has maintained its dividend, with a forward yield around 1.95% based on recent levels. The company prioritizes returning capital to shareholders while investing in core operations.
Investors will monitor upcoming quarterly results for continued evidence of turnaround momentum. The next earnings report for the second quarter is expected in late August.
The auto parts sector remains competitive, with players including AutoZone, O’Reilly Automotive and Genuine Parts Company. Advance Auto Parts has differentiated through its professional installer focus and omnichannel capabilities.
No specific second-quarter guidance was provided beyond the full-year outlook. Management highlighted steady demand in key categories and benefits from ongoing initiatives.
The earnings beat and positive comparable sales trend contributed to the strong market reaction. Shares had been under pressure earlier in 2026 amid broader retail sector concerns.
Advance Auto Parts continues to execute its strategic plan aimed at sustainable growth and improved profitability. The Q1 results mark a notable step in that direction.
