O'Reilly Automotive (ORLY) is expected to deliver toward the upper end of full-year guidance, despite softening Q2 trends, RBC Capital Markets said in a note Tuesday.

The company is scheduled to report Q2 results on July 29.

The analysts said they have lowered their Q2 and 2026 estimates for the company following softer third-party data. They now expect Q2 comparable sales to rise 5.7%, down from 6.7% prior, versus consensus of 5.5%, and adjusted earnings per share to increase 11% year-over-year to $0.87, down from $0.88 earlier, versus consensus of $0.86.

For 2026 and 2027, RBC now models comparable sales forecasts of 4.9% and 4.0%, respectively, and lowered its adjusted EPS estimates to $3.26 and $3.66. "Importantly, despite softening trends, we continue to expect 2026 delivery towards the upper-end of guidance," the analysts added.

They also said a potential deal with Genuine Parts (GPC) is unlikely due to significant US store overlap, antitrust and cannibalization concerns, and complications related to Genuine Parts' ownership structure.

RBC maintained its outperform rating and a $110 price target on O'Reilly Automotive.

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