Genuine Parts Company (GPC Quick QuoteGPC - Free Report) reported third-quarter 2026 adjusted earnings of $2.07 per share, missing the Zacks Consensus Estimate of $2.09. The bottom line increased 4.5% from $1.98 in the year-ago quarter. 

Revenues rose 4.2% year over year to $6.52 billion and surpassed the consensus estimate of $6.5 billion. Comparable sales increased 2.9%, led by strong Industrial demand. Acquisitions and favorable currency movements also supported growth, while North America Automotive faced margin pressure. 

Genuine Parts Company Price, Consensus and EPS Surprise

Genuine Parts Company price-consensus-eps-surprise-chart | Genuine Parts Company Quote

GPC Sales Growth Reflects Broad-Based Gains

The revenue increase included a 0.9% contribution from acquisitions and a combined 0.4% favorable impact from foreign currency and other factors. Growth was recorded across North America Automotive, International Automotive and Industrial operations. 

Adjusted gross margin expanded 70 basis points to 38.1%. However, adjusted selling, administrative and other expenses represented 29.5% of sales, up from 28.8% a year earlier, partly offsetting the gross-margin improvement. 

Genuine Parts' Industrial Arm Leads Growth

Industrial sales advanced 6.1% year over year to $2.41 billion. Comparable sales climbed 5.5%, while favorable currency movements added 0.5% and acquisitions contributed 0.1%. 

The segment generated EBITDA of $317 million, up 11.2% from the prior-year period. EBITDA margin expanded 60 basis points to 13.2%. Growth was recorded in 12 of 14 end markets, while eight markets improved sequentially. Maintenance, repair and operations sales grew approximately 5%, supported by large corporate accounts. Value-added solutions sales increased nearly 10%, improving sequentially from the second quarter. 

GPC's North America Automotive Margins Contract

North America Automotive sales rose 2.2% to $2.54 billion, driven by a 1.7% comparable-sales gain and a 1.1% contribution from acquisition. Foreign currency and other factors had a combined 0.6% unfavorable impact. 

Segment EBITDA declined 2.9% to $194 million, while EBITDA margin contracted 40 basis points to 7.6%. Company-owned stores in the United States delivered comparable-sales growth of approximately 3.5%, including roughly 5% growth in the commercial business. The Benson acquisition continued to perform ahead of financial and operational expectations. 

Genuine Parts' International Automotive Results

International Automotive revenues rose 4.5% to $1.57 billion. Foreign currency and acquisitions each contributed 1.7%, while comparable sales increased 1.1%. 

Segment EBITDA improved 4.7% to $141 million, with margin remaining flat at 9%. Europe recorded sequential improvement in comparable sales, particularly in the United Kingdom. Australasia delivered positive sales growth despite a challenging operating environment. Local-currency sales increased 3.6% in Europe and 1.7% in Australasia. 

GPC Absorbs Restructuring and Separation Costs

GAAP net income declined to $224 million from $226 million a year earlier, while diluted earnings remained flat at $1.62 per share. Adjusted net income increased to $286 million from $276 million. The difference between GAAP and adjusted results reflected approximately $61 million of after-tax adjustments. 

Restructuring and other costs totaled $64.5 million before taxes, while separation expenses reached $21.2 million. Adjusted EBITDA increased 4.2% to $549 million, with margin unchanged at 8.4%. GPC remains on track to separate its Automotive and Industrial businesses into two publicly traded companies in the first quarter of 2027. 

Genuine Parts Narrows 2026 Earnings Outlook

GPC lowered the upper end of its 2026 adjusted earnings guidance to $7.75 per share from $8, retaining the lower end at $7.5. The company reduced its GAAP earnings forecast to $5.6-$5.85 per share from $5.9-$6.4. 

Total sales growth guidance remains at 3-5.5%. North America Automotive growth is projected at 2.5-4.5%, International Automotive at 5-8% and Industrial at 3-6%. The company maintained its adjusted EBITDA outlook of $2-$2.2 billion. 

GPC's Cash Flow and Liquidity Improve

Cash from operations totaled $817 million in the first nine months of 2026, up from $511 million a year earlier. Free cash flow reached $502 million compared with $160 million in the prior-year period. 

Genuine Parts ended September with $2.4 billion of liquidity, including $763 million in cash. Year-to-date capital expenditures were $314 million, acquisition spending totaled $69 million and cash dividends reached $434 million. The company continues to expect full-year operating cash flow of $1-$1.2 billion and free cash flow of $550-$700 million. 

Genuine Parts’ Zacks Rank & Key Picks

GPC currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Auto-Tires-Trucks space are Rivian Automotive, Inc. (RIVN Quick QuoteRIVN - Free Report) , Fox Factory Holding Corp. (FOXF Quick QuoteFOXF - Free Report) and Lucid Group, Inc. (LCID Quick QuoteLCID - Free Report) .

RIVN is expected to report third-quarter fiscal 2026 results on Oct. 29. The Zacks Consensus Estimate for loss is pegged at 67 cents per share. RIVN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

FOXF is expected to report third-quarter fiscal 2026 results on Nov. 5. The Zacks Consensus Estimate for loss is pegged at 48 cents per share. FOXF currently sports a Zacks Rank #1.

LCID is expected to report third-quarter 2026 results on Nov. 9. The Zacks Consensus Estimate for loss is pegged at $2.78 per share. LCID currently carries a Zacks Rank #2.