AI-extracted from the 10-Q filed 2026-08-20 — Q2 FY2026 (quarter ended July 18, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Q2 net sales of $2.0B flat YoY, but gross margin expanded 267 bps to 46.2% and diluted EPS nearly quadrupled to $0.90, driven by tariff refunds and restructuring benefits.
Biggest Revenue Drivers
Other$20M
Represents 1% of net sales
Biggest Revenue Drivers
Total revenue: $2.0B-0.5% YoY
Other$20M
Represents 1% of net sales
Largest Expense Items
Cost of sales$1,077M-5.2% YoY
Included $26M IEEPA tariff refunds benefit; gross margin expanded 267 bps to 46.2%
Selling, general and administrative expenses$822M-3.5% YoY
SG&A exclusive of restructuring was 40.6% of sales, down 35 bps; benefited from store closure cost elimination
Interest expense$48M+152% YoY
Increased due to higher principal amount from debt issuance in Q3 fiscal 2025
Restructuring and related expenses$10M-66% YoY
Lower expenses as 2024 Restructuring Plan substantially complete; estimated $10M-$20M remaining through FY2026
Margins: Gross margin expanded 267 bps to 46.2%, driven by product margin expansion and $26M in IEEPA tariff refunds recognized in Q2. Operating margin improved significantly to 5.1% from 1.1% as restructuring expenses declined sharply.
Watch Items from the Filing
Comparable store sales declined 0.5% in Q2 (flat to slightly down), though 28-week comp sales up 1.7% YoY; reflects ongoing consumer softness in automotive parts demand.
$26M IEEPA tariff refunds recognized in Q2; future recovery magnitude not expected to be material, creating uncertainty in cost of sales baseline.
Total long-term debt $3.4B; Company repurchased $29M of 2028 Notes during Q2 and maintains $894M ABL borrowing availability with no borrowings drawn.
Cumulative restructuring costs incurred to date total $1.0B; company estimates $10M-$20M additional expenses through FY2026 end, substantially winding down.
Interest expense surged to $48M in Q2 from $19M prior year due to debt issuance; dilutes future earnings despite strong operational improvements.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Jamison Cynthia TReporting ownerGrant or award · Jul 24, 2026
Johnson Richard AReporting ownerGrant or award · Jul 24, 2026
Congress trading in AAP
3 transactions in AAP reported by 2 members of Congress under the STOCK Act, most recent trade Jul 12, 2023. Reported transactions, not recommendations.
About ADVANCE AUTO PARTS INC (AAP): stock profile, AI score and financials
ADVANCE AUTO PARTS INC (AAP) stock profile, AI quality score, and SEC EDGAR financial data, a Consumer Discretionary sector company. 13F Pro's AI-powered ranking engine scores AAP at 47.2/100 on a composite quality score built from its SEC filings, placing it at rank #1,805 of 2,925 stocks — the bottom half of the AI-ranked universe. AAP scores in the top quartile across revenue scale (84.6), earnings quality (82.1). Areas of concern include revenue growth (11.8) and free cash flow (28.2), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q3 2026), ADVANCE AUTO PARTS INC reports quarterly revenue of $2.0B, net income of $55.0M, an operating margin of 5.1%. Top institutional holders of AAP by reported 13-F value include BlackRock, PRICE T ROWE ASSOCIATES, PZENA INVESTMENT MANAGEMENT, based on the most recent SEC filings. AAP trades on the NYSE exchange and files with the SEC under CIK 1158449. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate AAP daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for ADVANCE AUTO PARTS INC directly from SEC EDGAR.