Genuine Parts Narrows Full-Year EPS Guidance Below Estimates Despite Q3 Beat, Stock Slides 6%

Genuine Parts Company reported third-quarter 2026 adjusted EPS of $2.07, beating the consensus estimate of $2.04 to $2.05 by $0.03, on revenue of $6.52 billion, up 4.2% year over year and roughly $30 million above expectations. Comparable sales grew 2.9% across the business, with GAAP EPS of $1.62, flat year over year.

The quarterly beat was overshadowed by a narrowed and lowered full-year adjusted EPS outlook. Genuine Parts now sees fiscal 2026 adjusted EPS of $7.50 to $7.75, down from the prior range of $7.50 to $8.00 and below the analyst consensus of around $7.73 to $7.78. Full-year GAAP EPS guidance was also cut to $5.60 to $5.85, from a previous $5.90 to $6.40. The company continues to expect total sales growth of 3% to 5.5% and projects free cash flow of $550 million to $700 million, with cash from operating activities of $1.0 billion to $1.2 billion.

By segment, Industrial was the standout performer, with sales rising 6.1% to $2.41 billion, comparable sales up 5.5%, and segment EBITDA climbing 11.2% to $317 million. North America Automotive sales grew 2.2% to $2.54 billion but segment EBITDA slipped 2.9% to $194 million. International Automotive posted sales of $1.57 billion, up 4.5%, with EBITDA up 4.7% to $141 million.

The company recorded $61 million in after-tax adjustments of $0.45 per share tied to its global restructuring initiative and the planned separation of its Automotive and Industrial businesses. Restructuring and other costs totaled $65 million, or $0.47 per share, and separation costs were $21 million, or $0.15 per share. The planned split of GPC and its Motion industrial segment into two independent publicly traded companies remains on track for completion in the first quarter of 2027.

Shares of GPC fell approximately 6.2% in premarket trading on Tuesday, making it one of the larger decliners in the session, as investors focused on the trimmed profit outlook rather than the quarterly outperformance.