AutoNation Adds $1 Billion to Buyback After Cutting Share Count 9% This Year
AutoNation added $1 billion to its stock buyback authorization after cutting its share count 9% this year, the car retailer said Friday as it reported its seventh straight quarter of higher adjusted earnings.
Third-quarter revenue was $7.0 billion, flat with a year earlier, according to the earnings release filed with an 8-K. Earnings per share fell to $4.87 from $5.65, while adjusted EPS rose to $5.11 from $5.01.
Service and finance carry the quarter
AutoNation said its after-sales business, which includes parts and service, produced record gross profit, with customer-pay revenue up 6%. Its in-house lending arm, AutoNation Finance, grew its loan portfolio by more than 40% from a year earlier, and its profit rose tenfold from a year earlier.
"Record After-Sales performance and strong growth in AutoNation Finance further increased the contribution of recurring earnings and cash flow," CEO Mike Manley said.
Buybacks take center stage
AutoNation has repurchased $620 million of stock so far in 2026, cutting shares outstanding by 9%. The board approved an additional $1 billion of repurchase authorization.
"The current environment strongly favors allocating capital toward share repurchases," Manley said in the release.
Why it matters
New-vehicle sales have been flat for dealers, so AutoNation is leaning on steadier profit pools like service work and auto lending, and returning cash through buybacks. That combination is what lifted adjusted EPS even as revenue stalled.
By the numbers
- $7.0 billion: third-quarter revenue, flat
- $5.11: adjusted EPS, up from $5.01
- $4.87: GAAP EPS, down from $5.65
- 6%: customer-pay growth in after-sales
- $620 million: stock repurchased year to date
- $1 billion: additional buyback authorization
Sources
- AutoNation Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 30, 2026 (accession 0001628280-26-068426)
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