Earning Preview: Genuine Parts revenue is expected to increase by 6.09%, and institutional views are mostly bullish
Abstract
Genuine Parts Company will release quarterly results on February 17, 2026 Pre-Market, and this preview summarizes consensus expectations for revenue, margins, net income and adjusted EPS, reviews the prior quarter’s performance, and synthesizes prevailing analyst views heading into the print.Market Forecast
Consensus for the upcoming quarter indicates revenue of US dollars 6.06 billion, up 6.09% year over year, EBIT of US dollars 392.87 million, up 17.06% year over year, and adjusted EPS of US dollars 1.81, up 16.87% year over year. Forecast detail for gross profit margin and net profit margin is not available; current expectations emphasize operating leverage and expense discipline as the principal drivers of the projected earnings expansion.The main business remains balanced across two pillars. Automotive contributed US dollars 3.99 billion last quarter on a company mix of 63.73%, and analysts expect steady growth in core product categories as availability and distribution productivity improve. The most promising segment into this quarter is Industrial (US dollars 2.27 billion last quarter), where performance is poised to benefit from better mix, pricing discipline, and cross-selling; together with company-level operating leverage (EBIT expected to rise 17.06% year over year), this segment is well placed to support the overall acceleration embedded in consensus.
Last Quarter Review
Genuine Parts Company delivered last quarter revenue of US dollars 6.26 billion, a gross profit margin of 37.40%, GAAP net profit attributable to the parent company of US dollars 226.00 million, a net profit margin of 3.61%, and adjusted EPS of US dollars 1.98; year over year, revenue grew 4.86% and adjusted EPS increased 5.32%, while EBIT rose 9.25%. On a sequential basis, net profit declined 11.26%, reflecting seasonal dynamics and tighter expense phasing against the prior period’s base, but the company maintained healthy gross margin resilience.A key business highlight was the revenue mix: Automotive accounted for US dollars 3.99 billion (63.73% of total) and Industrial contributed US dollars 2.27 billion (36.27%), illustrating diversified exposure across end-customer channels and product lines. The Automotive franchise anchored top-line scale, and the Industrial business provided incremental margin support through concentrated execution and cost control.
Current Quarter Outlook
Automotive segment outlook
Automotive remains the company’s largest revenue engine, representing US dollars 3.99 billion last quarter on a 63.73% mix. Near-term revenue expectations for the segment hinge on stable demand from commercial accounts, continued product availability across maintenance and repair categories, and improved distribution efficiency that shortens delivery times. With consensus projecting companywide revenue growth of 6.09% and adjusted EPS growth of 16.87%, the implied margin bridge is that Automotive should deliver modest top-line gains while contributing to operating leverage through disciplined SG&A control and ongoing optimization of the store and distribution footprint.Pricing normalization and category mix will be important watch items. The previous quarter’s gross profit margin of 37.40% showed that the company managed its product cost and pricing backdrop prudently despite sequential profit compression, and investors will look for this discipline to carry into the current quarter. Inventory quality and turns also matter, particularly given the sequential net profit step-down of 11.26% last quarter; an improvement in working capital productivity would support margin stability even if headline growth remains mid single-digit. Execution around digital tools for professional customers, fill-rate reliability, and private-label mix can further buffer gross margins if external cost pressures arise.
On expenses, the focal point is SG&A efficiency. Automotive’s scale allows for leverage in distribution, labor scheduling, and fleet/logistics costs when volumes hold steady or improve. If consensus EPS (US dollars 1.81) is achieved, it would reflect better expense phasing versus last quarter and modest expansion in operating income per sales dollar. Monitoring any commentary on pricing cadence, promotional intensity, and returns is equally relevant, as these factors cascade directly into gross-to-operating margin conversion and determine the extent of upside to the EBIT estimate of US dollars 392.87 million.
Industrial segment momentum and potential
Industrial contributed US dollars 2.27 billion last quarter and is set up as the most promising earnings contributor this quarter given the operating leverage implied by consensus. The forecast for company-level EBIT to grow 17.06% year over year suggests improving contribution margins, and the Industrial segment can be a meaningful driver if execution on pricing, mix, and service attach rates continues. The core levers here are category breadth, technical service capabilities that raise wallet share, and disciplined cost-to-serve that translates volume into margin.The prior quarter’s segment balance showed that Industrial already accounts for more than one-third of total revenue, enabling it to influence both the consolidated gross profit margin and operating margin trajectory. As cost-to-serve efficiencies scale and cross-selling increases, incremental margin on sequential revenue should trend higher than company average, reinforcing the thesis for a greater contribution to EBIT growth. The magnitude of this effect will likely be visible in the spread between revenue and EPS growth: consensus sees revenue up 6.09% and EPS up 16.87%, a gap that is consistent with stronger operating leverage, to which Industrial can contribute meaningfully.
Risks to this setup include any slowdown in order intake timing, elongated project cycles, or delays in converting backlog into revenue. Even so, a diversified category mix provides flexibility to emphasize higher-throughput items and prioritize service-intensive opportunities that carry better gross-profit-dollar yield. If Industrial maintains or slightly improves last quarter’s profitability profile while delivering steady revenue, it can meaningfully help the company meet or exceed the EBIT target of US dollars 392.87 million and support EPS delivery at US dollars 1.81.
Key stock-price swing factors this quarter
Margin trajectory versus last quarter’s baseline is the central stock driver. With gross profit margin at 37.40% and net profit margin at 3.61% last quarter, investors will scrutinize whether management can defend or modestly expand margins while delivering mid single-digit revenue growth. Clear signs of cost containment in SG&A, alongside stable pricing and mix in the product portfolio, would bolster confidence in the EPS estimate and may prompt positive revisions if the flow-through to EBIT exceeds expectations.Sequential profit dynamics will also shape the narrative. The last quarter’s 11.26% quarter-on-quarter decline in net profit sets a conservative base. If the company demonstrates improved operating rhythm—evidenced by better expense phasing, streamlined distribution, and normalized freight and logistics—sequential profitability can rebound even without dramatic acceleration in revenue. A clean inventory position and effective working capital management would serve as catalysts, allowing the company to drive margin resilience amid steady sales.
Finally, guidance commentary and capital allocation updates could influence post-print performance. Clarity around priorities for reinvestment, distribution capacity, and technology enablement can signal the sustainability of operating leverage into subsequent quarters. Updates on returns to shareholders, such as the cadence of share repurchases or dividend policy, can add a secondary support to EPS growth. Any quantified color on early-quarter run-rate trends, pricing cadence, and expense outlook will help investors calibrate the durability of the growth gap between revenue and EPS that consensus currently embeds.
Analyst Opinions
Bullish views are the majority among non-neutral stances over the period from January 1, 2026 to February 10, 2026, with a 100% bullish-to-bearish ratio based on the collected items. On January 23, 2026, one major global bank maintained an Overweight rating and lifted its price target to US dollars 156, reflecting confidence in earnings durability and the company’s ability to convert steady revenue into operating income growth. On February 4, 2026, another leading bank reiterated a Neutral rating while adjusting its price target to US dollars 145; however, the same date also showed that the stock’s average rating stood at Overweight with a mean price target of US dollars 151.71, underlining a skew to positive institutional positioning.The bullish camp emphasizes several points heading into the print. First, the forecast profile—revenue up 6.09% year over year and adjusted EPS up 16.87%—implies improved operating leverage, which aligns with management’s focus on execution, mix, and cost control observed in the prior quarter’s margin line. Second, the company’s balanced revenue base across Automotive and Industrial provides multiple avenues to achieve the EBIT estimate of US dollars 392.87 million even if one area sees timing variability, which supports confidence in meeting or modestly exceeding consensus EPS of US dollars 1.81. Third, the last quarter’s mix and margin resilience, despite a sequential net profit dip, set a backdrop where incremental efficiency improvements can produce visible earnings translation even on moderate sales growth.
Institutions also highlight qualitative signposts to watch for validation. Evidence of stable pricing and product availability in core categories would corroborate the revenue estimate of US dollars 6.06 billion. Commentary on SG&A containment and productivity gains in logistics and distribution would support the operating margin bridge from revenue to EBIT. Any confirmation that Industrial is delivering solid contribution—via service intensity or improved mix—would reinforce the projected spread between revenue and EPS growth and raise confidence in the stock’s ability to sustain a constructive trajectory beyond the quarter.
In this context, the bullish majority sees risk-reward supported by the setup: last quarter established a defensible margin base at 37.40% gross and 3.61% net, consensus implies incremental operating leverage, and multiple operational levers—expense management, mix optimization, and working capital discipline—can collectively drive earnings delivery. The forthcoming communication on February 17, 2026 Pre-Market will determine whether the company can validate the growth gap embedded in estimates and potentially catalyze upward revisions to forward earnings if execution trends remain intact.
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