Genuine Parts Company's stock plummeted 7.27% in early trading on Tuesday, following the release of its second-quarter earnings report which included a lowered full-year profit outlook.

The automotive and industrial parts distributor narrowed its 2026 diluted earnings per share forecast to a range of $5.90 to $6.40, down from its previous projection of $6.10 to $6.60. The company cited rising costs due to inflation and a tougher consumer environment marked by weaker spending for the adjustment. Geopolitical tensions in the Middle East have compounded challenges by pushing up fuel prices, further weighing on consumer sentiment in the automotive sector.

For the second quarter, the company reported a decline in net income to $227.6 million, or $1.65 per share, down from $254.9 million, or $1.83 per share, a year ago, despite a 6% increase in net sales to $6.54 billion. While the company reaffirmed its adjusted EPS outlook of $7.50 to $8.00, the cut to its GAAP profit guidance drove negative investor reaction at the open.