Genuine Parts Narrows Full-Year EPS Outlook Despite Q3 Beat, Stock Falls Over 6%

Genuine Parts Company reported third-quarter 2026 adjusted EPS of $2.07, beating the $2.04 consensus estimate by $0.03, on revenue of $6.52 billion that topped expectations by roughly $30 million and rose 4.2% year over year. Comparable sales grew 2.9% across the business, and adjusted net income came in at $286 million, just above the $285 million estimate. GAAP EPS was $1.62, flat compared with a year earlier.

Despite the quarterly beat, GPC cut its full-year adjusted EPS outlook to $7.50-$7.75 from a prior range of $7.50-$8.00, falling short of the analyst consensus of roughly $7.73-$7.78. The company also revised its GAAP EPS guidance to $5.60-$5.85, down from $5.90-$6.40. Full-year total sales growth is now expected in the range of 3% to 5.5%, while free cash flow is projected at $550 million to $700 million and cash from operating activities at $1.0 billion to $1.2 billion.

At the segment level, Industrial was the standout performer, with sales up 6.1% to $2.41 billion, comparable sales growth of 5.5%, and EBITDA surging 11.2% to $317 million. North America Automotive posted sales of $2.54 billion, up 2.2%, but segment EBITDA fell 2.9% to $194 million. International Automotive generated $1.57 billion in sales, up 4.5%, with EBITDA rising 4.7% to $141 million.

The quarter included $61 million in after-tax adjustments, or $0.45 per share, tied to a global restructuring initiative and the planned separation of its Automotive and Industrial businesses. Separation costs alone totaled $21 million, or $0.15 per share. GPC said the planned split of its GPC and Motion segments into two independent public companies remains on track for completion in the first quarter of 2027. Truist raised its price target on the stock following the results. Shares dropped approximately 6.2% in pre-market trading, with the narrowed and lowered profit outlook overshadowing the quarterly beat.