Advance Auto Parts vs O'Reilly Automotive: Revenue, Profit and Business Model
Advance Auto Parts reported $8.6B of revenue in FY2025 and $44M of net income. O'Reilly Automotive reported $17.8B of revenue in FY2025 and $2.5B of net income.
Latest financial snapshot
Advance Auto Parts
- Latest revenue
- $8.6B (FY2025)
- Net income
- $44M
- Net margin
- 0.5%
- Revenue growth
- -1.2% a year, FY2016–FY2025
O'Reilly Automotive
- Latest revenue
- $17.8B (FY2025)
- Net income
- $2.5B
- Net margin
- 14.3%
- Revenue growth
- +8.4% a year, FY2016–FY2025
Financial summary
Advance Auto Parts
Net sales from continuing operations declined from $9.094 billion in fiscal 2024 to $8.601 billion in fiscal 2025 as the company completed its store-footprint optimization. Net income attributable to Advance was $44 million in fiscal 2025, while income from continuing operations was $68 million; the difference reflects discontinued operations and attribution presented in the filing.
O'Reilly Automotive
O'Reilly's net sales grew from $8.59 billion in 2016 to $17.78 billion in 2025. In 2025 gross margin was 51.6%, operating income was about $3.46 billion (19.5% of sales) and net income was $2.54 billion. The company pays no dividend and instead returns cash through buybacks: it repurchased about $30.4 billion of stock from January 2011 through July 29, 2026. For 2026 it guided to $18.9B-$19.2B of revenue, 4%-6% comparable sales growth and diluted EPS of $3.20-$3.30.
Revenue and profit by year
Advance Auto Parts
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $8.6B | $44M | 0.5% | -5.4% | Source |
| FY2024 | $9.1B | -$336M | -3.7% | -1.2% | Source |
| FY2023 | $9.2B | $30M | 0.3% | +0.7% | Source |
| FY2022 | $9.1B | $464.4M | 5.1% | -16.8% | Source |
| FY2021 | $11B | $596.6M | 5.4% | +8.8% | Source |
| FY2020 | $10.1B | $493M | 4.9% | +4.1% | Source |
| FY2019 | $9.7B | $486.9M | 5.0% | +1.3% | Source |
| FY2018 | $9.6B | $423.8M | 4.4% | +2.2% | Source |
| FY2017 | $9.4B | $475.5M | 5.1% | -2.0% | Source |
| FY2016 | $9.6B | $459.6M | 4.8% | — | Source |
O'Reilly Automotive
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $17.8B | $2.5B | 14.3% | +6.4% | Source |
| FY2024 | $16.7B | $2.4B | 14.3% | +5.7% | Source |
| FY2023 | $15.8B | $2.3B | 14.8% | +9.7% | Source |
| FY2022 | $14.4B | $2.2B | 15.1% | +8.1% | Source |
| FY2021 | $13.3B | $2.2B | 16.2% | +14.8% | Source |
| FY2020 | $11.6B | $1.8B | 15.1% | +14.3% | Source |
| FY2019 | $10.1B | $1.4B | 13.7% | +6.4% | Source |
| FY2018 | $9.5B | $1.3B | 13.9% | +6.2% | Source |
| FY2017 | $9B | $1.1B | 12.6% | +4.5% | Source |
| FY2016 | $8.6B | $1B | 12.1% | — | Source |
Where the revenue comes from
Advance Auto Parts
- Parts and batteries64%
Replacement parts and batteries represented 64% of fiscal 2025 net sales.
- Accessories and chemicals21%
Accessories and chemicals represented 21% of fiscal 2025 net sales.
- Engine maintenance14%
Engine-maintenance products represented 14% of fiscal 2025 net sales.
- Other products1%
Other products represented 1% of fiscal 2025 net sales.
O'Reilly Automotive
- DIY Retail SalesMajor
Walk-in and online retail purchases by vehicle owners and hobbyists.
- Professional Installer SalesMajor
Commercial deliveries and account sales to repair shops and service providers.
- Private Label and Owned BrandsMaterial
Proprietary and exclusive products that support margin and inventory control.
Business model and strategy
Advance Auto Parts
How it makes money
Advance sells replacement parts, batteries, maintenance products, accessories, chemicals, and tools to professional repair businesses and DIY customers. Its blended-box model serves both groups from the same stores, supported by hubs, distribution centers, commercial delivery, e-commerce, and independently owned Carquest locations.
Growth strategy
Advance's multi-year plan focuses on merchandising excellence, supply-chain transformation, and store operations. Following the Worldpac sale and store-footprint optimization, the company is concentrating on the blended-box model that serves professional and DIY customers from the same stores.
Competitive advantage
Advance combines 4,305 company-operated stores at January 3, 2026 with commercial delivery, hub inventory, the Carquest network, and the owned DieHard brand. These assets support urgent local fulfillment for professional and DIY customers.
O'Reilly Automotive
How it makes money
O'Reilly makes money by buying auto parts, tools, fluids and accessories in bulk and reselling them through about 6,700 stores. It serves two customer groups from the same inventory. DIY customers (about $8.77 billion, or 49% of 2025 sales) are drivers who fix their own vehicles.
Growth strategy
O'Reilly grows by opening new stores (207 net new in 2025 and a 225-235 target for 2026), adding distribution centers and hub stores to deepen parts availability, and winning more professional accounts. It is also building out newer markets in Mexico (126 stores at June 30, 2026) and Canada (28 stores via Vast-Auto), and keeps buying back shares to lift earnings per share.
Competitive advantage
O'Reilly's edge is parts availability close to the customer. Distribution centers feed hub stores that hold deeper inventory, which in turn supply nearby stores the same day. For a repair shop with a car on the lift, getting the right part within the hour matters more than a small price gap, and that speed is hard for online sellers to match.
Questions about Advance Auto Parts vs O'Reilly Automotive
Which company has higher revenue — Advance Auto Parts, Inc. or O'Reilly Automotive, Inc.?
Advance Auto Parts, Inc. reported $8.6B (FY2025), while O'Reilly Automotive, Inc. reported $17.8B (FY2025). By last reported revenue, O'Reilly Automotive, Inc. is the larger business, with Advance Auto Parts, Inc. reporting a smaller revenue base.
What is the market cap of Advance Auto Parts, Inc. vs O'Reilly Automotive, Inc.?
Advance Auto Parts, Inc.'s market capitalisation stands at $2.7B, while O'Reilly Automotive, Inc.'s is $69.6B. O'Reilly Automotive, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Advance Auto Parts, Inc..
Which is more financially efficient — Advance Auto Parts, Inc. or O'Reilly Automotive, Inc.?
Advance Auto Parts, Inc. generates $159k / employee in revenue per employee, while O'Reilly Automotive, Inc. generates $186k / employee. O'Reilly Automotive, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Advance Auto Parts, Inc. and O'Reilly Automotive, Inc. make money?
Advance Auto Parts, Inc. and O'Reilly Automotive, Inc. generate revenue in fundamentally different ways. Advance Auto Parts, Inc.: Advance sells replacement parts, batteries, maintenance products, accessories, chemicals, and tools to professional repair businesses and DIY customers. O'Reilly Automotive, Inc.: O'Reilly makes money by buying auto parts, tools, fluids and accessories in bulk and reselling them through about 6,700 stores.
Which company is valued higher relative to revenue — Advance Auto Parts, Inc. or O'Reilly Automotive, Inc.?
On a price-to-sales (P/S) basis, Advance Auto Parts, Inc. trades at 0.3x P/S and O'Reilly Automotive, Inc. at 3.9x P/S. O'Reilly Automotive, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Advance Auto Parts, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Advance Auto Parts, Inc. bigger than O'Reilly Automotive, Inc.?
By last reported revenue, O'Reilly Automotive, Inc. ($17.8B (FY2025)) is the larger company compared to Advance Auto Parts, Inc. ($8.6B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Advance Auto Parts vs O'Reilly Automotive overview