Shares of Advance Auto Parts (AAP) surged 7.04% in pre-market trading on Thursday following the company's release of better-than-expected third-quarter results and an improved full-year outlook.

The aftermarket auto parts retailer reported a comparable store sales growth of 3.0% for Q3 2025, surpassing analyst expectations. While the company posted a net loss of $0.02 per share, its adjusted earnings per share came in at $0.92, significantly beating the consensus estimate of $0.75. This marked a substantial improvement from the $0.05 loss per share reported in the same period last year.

Investors were particularly encouraged by Advance Auto Parts' decision to raise its full-year guidance. The company now expects adjusted earnings from continuing operations of $1.75 to $1.85 per share, up from the previous forecast of $1.20 to $2.20 per share. Additionally, the company lifted the low end of its full-year sales guidance to $8.55 billion from $8.4 billion, while maintaining the high end at $8.6 billion. CEO Shane O'Kelly attributed the strong performance to continued growth in both the company's Pro channel and positive comparable sales growth in the DIY channel.