Advance Auto Parts Inc. Stock
Advance Auto Parts Inc. Stock
Advance Auto Parts, Inc. (AAP) is a leading North American automotive aftermarket parts provider. The company operates over 4,800 stores across the United States, Puerto Rico, the Virgin Islands, and Canada under the Advance Auto Parts, Carquest, and Worldpac brands. They offer a wide range of automotive products, including batteries, oil, brakes, and other replacement parts for cars, trucks, and other vehicles. Advance Auto Parts also provides a suite of professional resources and services to help auto repair shops and garages succeed in their businesses. As of 2021, Advance Auto Parts has a market capitalization of approximately $11.4 billion.
Pros and Cons of Advance Auto Parts Inc. in the next few years
Pros
Cons
Performance of Advance Auto Parts Inc. vs. its peers
| Security | Change(%) | 1w | 1m | 1y | YTD | 3y | 5y |
|---|---|---|---|---|---|---|---|
| Advance Auto Parts Inc. | 0.470% | 13.076% | 6.996% | 3.890% | 50.989% | -22.380% | -71.367% |
| O'Reilly Automotive Inc. | 1.070% | 3.773% | 1.975% | -4.692% | 2.222% | -90.499% | -84.458% |
| Autozone Inc. | -0.440% | 3.634% | -0.364% | -16.295% | -5.128% | 21.689% | 98.983% |
| Copart Inc. | 1.320% | 13.051% | 0.522% | -32.226% | -19.821% | -66.484% | -78.080% |
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The analysis provided is generated by an artificial intelligence system and is provided for informational purposes only. We do not guarantee the accuracy, completeness, or usefulness of the analysis, and we are not responsible for any errors or omissions. Use of the analysis is at your own risk.Advance Auto Parts (AAP) — FY2026 Annual Report
Advance Auto Parts appears to have returned to modest profitability in FY2026, reporting net income of $44 million after a $336 million loss the prior year. Revenue continued its downward drift to roughly $8.6 billion, the lowest level in the five-year window under review, yet the company's efficiency metrics seem to be moving in a more favorable direction. The overall picture may suggest a business in the midst of restructuring, where cost discipline is beginning to show even as the top line contracts.
The most striking development on the income statement appears to be the dramatic recovery in gross margin, which expanded to 43.4% from 37.5% a year earlier, and looks especially notable against the 26.6% reported in FY2023. This margin improvement, combined with a meaningful reduction in SG&A and lower restructuring charges (down to $204 million from $309 million), narrowed the operating loss to just $43 million from a substantial $713 million loss. Still, the company remains marginally unprofitable at the operating level, and the swing to positive net income appears partly attributable to $91 million in other income rather than a fully healed core operation. Revenue, meanwhile, has now declined at roughly a 5% annual pace, and the multi-year top-line erosion could warrant ongoing attention.
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