LKQ Slides as Europe Weakness and Lower 2026 Outlook Weigh on Shares

LKQ Corporation (LKQ) is down 14.1% today. Here is some analysis on what might have caused this price movement.

Analysis: The selloff appears tied to LKQ’s second-quarter results and a reduced full-year 2026 outlook. While management highlighted improving trends in North America and steady demand in Specialty, investors seem focused on Europe, where Germany ERP disruption and weaker conditions in the U.K. and Benelux led to lower profit expectations and a slower recovery timeline.

Details:

LKQ reported second-quarter 2026 revenue of $3.4 billion, down 3.0% from a year earlier, while adjusted diluted EPS fell to $0.67 from $0.84.

The company cut its 2026 adjusted diluted EPS outlook to $2.60 to $2.90 from $2.90 to $3.20, and lowered its organic revenue growth outlook to a range of negative 3.0% to negative 1.0%.

Management said Europe is driving most of the guidance reduction, citing a slower-than-expected recovery after the ERP implementation in Germany and softer performance in the U.K. and Benelux.

On the earnings call, LKQ estimated the Germany ERP disruption reduced quarterly revenue by about $140 million and Europe EBITDA by about $50 million, reinforcing concerns that the turnaround may take longer than previously expected.

Sources:

LKQ Corporation, SEC, Benzinga

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

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$LKQ Hedge Fund Activity

We have seen 244 institutional investors add shares of $LKQ stock to their portfolio, and 273 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

CAPITAL WORLD INVESTORS added 7,991,179 shares (+237.6%) to their portfolio in Q1 2026, for an estimated $234,700,927
BLACKROCK, INC. added 7,032,445 shares (+23.5%) to their portfolio in Q1 2026, for an estimated $206,542,909
MORGAN STANLEY removed 3,117,298 shares (-23.0%) from their portfolio in Q1 2026, for an estimated $91,555,042
CAPITAL RESEARCH GLOBAL INVESTORS removed 3,100,000 shares (-80.0%) from their portfolio in Q1 2026, for an estimated $91,047,000
CLARKSTON CAPITAL PARTNERS, LLC removed 2,222,327 shares (-59.1%) from their portfolio in Q1 2026, for an estimated $65,269,743
PZENA INVESTMENT MANAGEMENT LLC added 1,850,727 shares (+42.2%) to their portfolio in Q1 2026, for an estimated $54,355,851
FULLER & THALER ASSET MANAGEMENT, INC. added 1,683,893 shares (+20.4%) to their portfolio in Q1 2026, for an estimated $49,455,937

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$LKQ Price Targets

Multiple analysts have issued price targets for $LKQ recently. We have seen 2 analysts offer price targets for $LKQ in the last 6 months, with a median target of $35.0.

Here are some recent targets:

John Babcock from Barclays set a target price of $33.0 on 04/07/2026
Jash Patwa from JP Morgan set a target price of $37.0 on 02/23/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.