Advance Auto Parts reported fourth-quarter earnings that significantly exceeded Wall Street expectations, with adjusted earnings per share of $0.86 compared to analyst estimates of $0.43. The auto parts retailer posted revenue of $2 billion, beating the consensus estimate of $1.95 billion, while comparable sales grew 1.1% for the quarter.

For the full year 2025, the company achieved 0.8% comparable store sales growth, marking its first positive performance after three consecutive years of declines. The company expanded its adjusted operating income margin by over 200 basis points to 2.5%, meeting its full-year guidance. CEO Shane O'Kelly noted that the company laid the foundation for future growth in 2025 through operational improvements.

to fiscal 2026, Advance Auto Parts projects comparable sales growth of 1.0% to 2.0% and an adjusted operating income margin between 3.8% and 4.5%. The company expects earnings per share between $2.40 and $3.10, with revenue guidance of $8.49-8.58 billion, slightly below analyst expectations of $8.67 billion.