Genuine Parts Q1 Revenue Climbs 6.8% to $6.26B, Net Income Slips to $188.5M

Genuine Parts Co., an automotive and industrial parts distributor, reported net revenue of $6.26 billion for the quarter ended March 31, 2026, a 6.8% increase from $5.87 billion in the same period a year earlier. Net income fell 3% to $188.5 million from $194.4 million in the prior-year quarter. Read more earnings reports.

Diluted earnings per share came in at $1.37, down from $1.40 a year ago, despite the revenue gain. The decline in per-share earnings reflects both the lower net income and a reduced share count, with weighted average diluted shares falling to 138.0 million from 139.2 million.

Operating Performance

Gross profit rose 7.6% to $2.34 billion from $2.17 billion, while the gross margin expanded to 37.3% from 37.0%. Operating expenses climbed 8.9% to $2.05 billion from $1.89 billion, outpacing the revenue growth rate.

Cost of goods sold increased 6.3% to $3.93 billion from $3.69 billion. Selling, general and administrative expenses totaled $1.86 billion, up from $1.71 billion in the year-ago quarter. Income tax expense declined slightly to $56.9 million from $57.2 million.

Segment Revenue

The Automotive Parts Group generated $4.54 billion in revenue, up from $4.34 billion a year earlier. The Industrial Parts Group contributed $1.09 billion, compared to $972.9 million in the prior-year quarter. The Business Products Group posted $628.5 million in revenue, up from $552.4 million.

Cash Flow and Balance Sheet

Cash from operations swung to a positive $63.9 million from a negative $40.8 million in the prior-year quarter. Cash used in investing activities totaled $92.9 million, down from $154.8 million. Financing activities generated $56.7 million in cash, compared to $128.7 million a year earlier.

Total assets stood at $21.0 billion as of March 31, 2026, up from $19.8 billion a year earlier. Inventory increased to $6.13 billion from $6.07 billion at year-end 2025. Long-term debt decreased slightly to $3.48 billion from $3.50 billion at December 31, 2025.

Stockholders' equity rose to $4.48 billion from $4.42 billion at the end of 2025. The company had 137.6 million common shares outstanding at quarter-end, essentially flat from 137.6 million at December 31, 2025, and down from 138.8 million a year earlier.

First Quarter Financial Summary

Depreciation and amortization expenses totaled $131.0 million for the quarter, up from $115.4 million in the prior-year period. The company maintained cash and restricted cash of $500.0 million as of March 31, 2026, compared to $420.4 million a year earlier.