AutoNation, Inc. (NYSE:AN) shares rose Friday after the company reported first-quarter 2026 results, as strong profitability in higher-margin segments helped offset weaker sales.

The auto retailer leaned on financing and after-sales operations to support performance amid softer demand.

Quarterly Details

AutoNation reported first-quarter adjusted earnings of $4.69 per share, beating analysts’ estimates of $4.51. Revenue totaled $6.552 billion, down 2% from a year earlier and below the consensus estimate of $6.651 billion.

Gross profit declined 1% year over year to $1.21 billion, while operating income fell 6% to $314.3 million.

Same-store revenue decreased 4% to $6.40 billion, and same-store gross profit dropped 2% to $1.18 billion.

“We are pleased to report our strong first-quarter results highlighted by record gross profit in After-Sales and record unit profitability in Customer Financial Services,” CEO Mike Manley said. “Unit profitability for new and used vehicles increased sequentially. These gains largely offset expected year-over-year declines in unit sales.”

Balance Sheet And Capital Allocation

As of March 31, 2026, AutoNation had liquidity of $1.6 billion, including $66 million in cash and $1.6 billion available under its revolving credit facility.

Manley said AutoNation Finance continued to expand, with its portfolio growing to $2.4 billion alongside improved profitability, credit performance and funding.

“Our diversified earnings profile, flexible cost structure, and strong balance sheet and cash flows continue to support resilient performance and disciplined capital deployment to generate shareholder returns in a dynamic operating environment,” he said.

During the quarter, the company repurchased 1.5 million shares for $300 million, or $201 per share.

Manley said during the earnings call that the company continues to prioritize its after-sales business, describing it as relatively anti-cyclical, stable and predictable.

He noted that the aging vehicle fleet presents a growing opportunity, particularly as new and used vehicle purchases are deferred, driving sustained demand for maintenance and repair services.

Manley added that this dynamic underscores the strength of the company's balanced business model.

AN Price Action: AutoNation shares were up 1.38% at $215.32 at the time of publication on Friday, according to Benzinga Pro data.

Photo by Piotr Swat via Shutterstock