AutoNation

AutoNation is one of the largest car dealer groups in the United States. It sells new and used vehicles through a national network of dealerships, grouped in Domestic, Import and Premium Luxury segments. It repairs and services vehicles and sells parts, which it calls After-Sales. It earns fees when it arranges vehicle loans and sells add-on products such as service contracts.

Through AutoNation Finance, it also makes auto loans itself and funds them mostly with non-recourse debt. Most profit comes from After-Sales and from finance and insurance, because vehicle sales earn low margins. Bill Gates's Cascade Investment owns about one fifth of the shares.

The market prices AutoNation as a dealer whose profits passed their peak. Vehicle profits fall while unit sales fall, and earnings per share grow mainly because the company buys back shares. In Q3 2026, same-store new vehicle unit sales fell 5% and used unit sales fell 6% from a year earlier. Same-store gross profit fell 5%, and adjusted operating income fell 7%.

Adjusted EPS still rose 2%, because the diluted share count was 13% lower. AutoNation also grows its own loan book, which adds credit risk. For the gap to close, four things must be true. Same-store unit sales must stop falling.

After-Sales gross profit must keep growing, as it did with a record in Q3 2026 and 6% customer pay growth. AutoNation Finance must keep growing its profit while credit losses stay stable. The covenant leverage ratio must stay near 2.7 times or lower while buybacks continue under the extra $1.0 billion authorization of October 2026. The Q4 2026 report, expected in late January or February 2027, gives the next evidence.

The gap depends on the vehicle cycle and on interest rates, so it can close only slowly, over the next two to three years. The main reason it may not close is a longer fall in vehicle demand and dealer margins.

1. Oct 30, 2026Passed

   Q3 2026 earnings: unit sales and vehicle marginsA smaller fall in same-store new and used unit sales than in Q2 2026 and growth in After-Sales gross profit pass; a larger fall in units or in adjusted operating income fails.Outcome: Same-store used unit sales fell 6% against 8% in Q2 2026, new unit sales fell 5% as in Q2, After-Sales gross profit was a record and adjusted operating income fell 7%, no more than in Q2.
2. Jan 30, 2027 · est.Pending

   Q4 2026 earnings: AutoNation Finance and leverageAutoNation Finance profit that keeps growing with stable credit losses, and covenant leverage at or below 2.8 times, pass; higher credit losses or rising leverage fails.

Every passed and failed checkpoint across all picks

• October 30, 2026AutoNation reported Q3 2026 results. Revenue was $7.0 billion, about the same as a year earlier. EPS was $4.87 against $5.65, and adjusted EPS rose to $5.11 from $5.01, because the diluted share count fell 13%. Same-store new vehicle unit sales fell 5% and used unit sales fell 6%. After-Sales gross profit was a record, and AutoNation Finance income rose to $15.4 million from $1.5 million. AutoNation bought back $620 million of shares in the first nine months of 2026. In October 2026, the Board authorized $1.0 billion more of buybacks, and the company raised its commercial paper program to $2.0 billion.
• October 16, 2026AutoNation appointed Mark Stewart, the CEO of Goodyear and a former Chief Operating Officer of North America for Stellantis, to its board as an independent director.
• October 12, 2026AutoNation said that it will report Q3 2026 results before the market opens on October 30, 2026, with a call at 9:00 a.m. ET.

Last earnings

October 30, 2026 (8-K on sec.gov)

Next earnings

Expected about January 30, 2027. The company has not confirmed the date.

• 10-QQuarterly report for the period ended Sep 30, 2026Filed October 30, 2026 · an-20260930
• 8-KEarnings releaseFiled October 30, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Investor disclosureFiled October 16, 2026 · an-20261013
• 8-KOther company newsFiled September 15, 2026 · Read it on sec.gov
• 10-QQuarterly report for the period ended Jun 30, 2026Filed July 31, 2026 · an-20260630
• 8-KEarnings releaseFiled July 31, 2026 · Press release and exhibits
• 10-QQuarterly report for the period ended Mar 31, 2026Filed May 1, 2026 · an-20260331
• 8-KEarnings releaseFiled May 1, 2026 · Press release and exhibits
• 8-KChange of directors or officers and Shareholder vote resultsFiled April 29, 2026 · an-20260428
• 10-KAnnual report for the period ended Dec 31, 2025Filed February 12, 2026 · an-20251231

Every filing on SEC EDGAR (CIK 350698)

• Vehicle unit sales and margins fall. In the first nine months of 2026, same-store new and used vehicle unit sales each fell 6% from a year earlier, and new vehicle gross profit fell 15%. If demand stays weak, profits from vehicles can fall further.
• AutoNation Finance adds credit risk. Auto loans receivable rose to $2.78 billion at September 30, 2026, from $2.14 billion at December 31, 2025, and the provision for credit losses was $56.8 million in the first nine months of 2026. Higher loan losses in a weak economy would reduce profit.
• Debt and interest costs rose. Non-vehicle debt was $4.34 billion at September 30, 2026, up from $3.98 billion at December 31, 2025, and other interest expense rose to $149.6 million in the first nine months of 2026 from $133.6 million a year earlier. Floor plan notes for vehicle inventory were another $4.02 billion. Higher interest rates raise these costs.
• Cascade Investment owns 21.1% of the shares. One large holder can influence votes, and a large sale of shares could weigh on the price.

AutoNation funds its vehicle inventory with floor plan notes and funds the rest of the business with senior notes, commercial paper and a revolving credit facility. At September 30, 2026, non-vehicle debt was $4.34 billion, against $3.98 billion at December 31, 2025. Read more

AutoNation does not pay a dividend.

Source: company filings and market data, read on November 13, 2026.