Key Highlights

  • AN shares trading up 10.73% today to $187.51 after third-quarter results.
  • Adjusted diluted EPS of $5.11 compared with $5.01 in the year-ago quarter.
  • Parts and service Gross Profit reached a record $616.6 million, up 3.3%.
  • Revenue of $7.01 billion was down 0.4%, while GAAP diluted EPS fell to $4.87 from $5.65.
  • The board added $1.0 billion to the share repurchase authorization in October.

Adjusted EPS of $5.11 Edges Past Last Year Even as Revenue Slips

AutoNation (NYSE:AN) shares are trading up 10.73% today after the dealer group reported third-quarter 2026 results. Adjusted Diluted Earnings per Share came in at $5.11, up from $5.01 a year earlier, which the company described as its seventh straight quarter of adjusted EPS growth. The adjusted figure excludes $6.6 million of after-tax self-insurance losses tied to weather events.

Headline numbers were softer. Revenue was $7.01 billion, down 0.4% from $7.04 billion, and gross profit slipped 2.5% to $1.21 billion. Net Income fell 25% to $162.3 million, and GAAP diluted EPS dropped 14% to $4.87, so the improvement in adjusted EPS leaned heavily on a smaller share count.

AutoNation operates one of the largest networks of franchised new and used vehicle dealerships in the United States, alongside a parts and service Business and a captive finance arm.

Record After-Sales Profit and AutoNation Finance Offset Weaker Unit Sales

Same-store new vehicle units fell 5.3% to 62,356, and used vehicle units dropped 6.3% to 63,703. Same-store gross profit declined 4.7%. Within franchised dealerships, domestic Brand revenue fell 7.1% while Import revenue rose 3.6% and premium luxury revenue gained 2.8%.

The offsetting strength came from recurring businesses. Total company parts and service gross profit reached a record $616.6 million, up from $597.0 million. AutoNation Finance generated $15.4 million of income versus $1.5 million a year ago, and its net auto Loan receivables rose about 42% to $2.78 billion.

Corporate and other segment losses widened to $77.6 million from $42.5 million, a drag that partly cancelled the finance gain.

Buybacks Reach $668 Million This Year as Board Adds $1.0 Billion Authorization

The company repurchased $162.9 million of stock in the quarter, or roughly 0.8 million shares. Year to date through September 30, Buybacks totaled $619.9 million for 3.1 million shares, and the share count has fallen 9%. Through October 28, repurchases reached 3.4 million shares for $668 million.

The board approved a new $1.0 billion authorization in October, leaving $1.4 billion available as of October 28. Adjusted free Cash Flow for the first nine months was $739.0 million, equal to 141% of adjusted net income.

Cash stood at $51.2 million at quarter end, with Liquidity of $1.5 billion. The covenant Leverage Ratio was 2.71 times against a 3.75 times limit, and the revolver was raised to $2.0 billion with Maturity extended to September 2031.

Shares Recover From a 35% Annual Slide With the Fourth-Quarter Report as the Next Test

Before today, AutoNation had a Market Value of about $5.3 billion, down roughly 35% over the past year, a trailing P/E near 7.4 and a 52-week range of $151.82 to $235.81. Analyst targets cited in recent weeks included $213 from Bank of America and UBS, $185 from JPMorgan and $175 from Morgan Stanley, all published before these results.

The release carried no forward guidance. Investors will look to the fourth-quarter report for evidence that After-Sales and AutoNation Finance can keep offsetting lower vehicle volumes, and for the pace of continued buybacks.