AutoNation shares rose about 5.6% in pre-market trading after the automotive retailer reported third quarter 2026 results, according to Investing.com. The company beat revenue expectations but missed on earnings.
AutoNation reported adjusted earnings per share of $5.11 for the quarter, against analyst estimates of $5.17. Revenue came in at $7.0 billion, above the consensus estimate of $6.93 billion, and was flat compared with the same period a year earlier. Adjusted EPS rose 2% from $5.01, the seventh straight quarter of year-over-year growth.
CEO Mike Manley said the team "delivered another solid quarter." He credited "record After-Sales performance and strong growth in AutoNation Finance" with increasing recurring earnings and cash flow.
Parts and service revenue rose 5.2% to $1.29 billion, which the company said produced record After-Sales gross profit. The AutoNation Finance portfolio grew more than 40% year over year, and its profit rose tenfold, according to the report.
Same-store new vehicle retail unit sales fell 5.3%. Used vehicle retail units dropped 6.3%.
The company repurchased $620 million of shares so far this year, reducing shares outstanding by 9%. Its board authorized an additional $1.0 billion in buybacks. Adjusted free cash flow for the first nine months of 2026 totaled $739.0 million, equal to 141% of adjusted net income.