AutoZone 4th Quarter Total Company Same Store Sales Increase 1.5%; Domestic Same Store Sales Increase 1.6%; 4th Quarter EPS of $56.05; Annual Sales of $20.3…
AUTOZONE INC (AZO) filed an SEC Form 8-K — Results of Operations and Financial Condition. EXHIBIT 99.1 AutoZone 4th Quarter Total Company Same Store Sales Increase 1.5%; Domestic Same Store Sales Increase 1.6%; 4th Quarter EPS of $56.05; Annual Sales of $20.3 Billion MEMPHIS, Tenn., Sept. 22, 2026 (GLOBE NEWSWIRE) -- AutoZone, Inc. (NYSE: AZO) today reported net sales
How this was made
The 30-second read
Why it matters
The earnings beat and large buyback are likely to drive short‑term buying pressure, while guidance and store expansion provide longer‑term catalysts.
Market read
Strong earnings and buyback make AZO a near‑term trade candidate; sector peers may see spillover effects.
What to watch
International same-store sales growth is modest; macro headwinds like fuel price volatility could impact future demand.
AutoZone 4th Quarter Total Company Same Store Sales Increase 1.5%; Domestic Same Store Sales Increase 1.6%; 4th Quarter EPS of $56.05; Annual Sales of $20.3 Billion
Fourth-quarter net sales increased 5.6%, operating profit increased 10.1% and diluted EPS was $56.05, supported by a 182 basis point gross-margin increase. Comparable-sales growth remained modest at 1.5% on a constant-currency basis, while operating expenses deleveraged and full-year gross margin declined versus the prior year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, 16 Weeks Ended August 29, 2026GAAP | $6.59B | – | 5.6% |
| Cost of sales, 16 Weeks Ended August 29, 2026GAAP | 3,077,151 | – | – |
| Gross profit, 16 Weeks Ended August 29, 2026GAAP | 3,517,728 | – | – |
| Gross profit as a percentage of sales, 16 Weeks Ended August 29, 2026GAAP | 53.3% | – | increase of 182 basis points versus the prior year |
| Operating, SG&A expenses, 16 Weeks Ended August 29, 2026GAAP | 2,200,811 | – | – |
| Operating expenses as a percentage of sales, 16 Weeks Ended August 29, 2026GAAP | 33.4% | – | – |
| Operating profit (EBIT), 16 Weeks Ended August 29, 2026GAAP | 1,316,917 | – | 10.1% |
| Interest expense, net, 16 Weeks Ended August 29, 2026GAAP | 148,684 | – | – |
| Income before taxes, 16 Weeks Ended August 29, 2026GAAP | 1,168,233 | – | – |
| Income tax expense, 16 Weeks Ended August 29, 2026GAAP | 236,646 | – | – |
| Net income, 16 Weeks Ended August 29, 2026GAAP | $931.6M | – | – |
| Basic net income per share, 16 Weeks Ended August 29, 2026GAAP | $ 57.17 | – | – |
| Diluted net income per share, 16 Weeks Ended August 29, 2026GAAP | $ 56.05 | – | – |
| Weighted average diluted shares outstanding, 16 Weeks Ended August 29, 2026GAAP | 16,620 | – | – |
| Total Company same store sales, 16 Weeks Ended August 29, 2026other | 2.7% | – | – |
| Total Company constant-currency same store sales, 16 Weeks Ended August 29, 2026other | 1.5% | – | – |
| Net sales, 52 Weeks Ended August 29, 2026GAAP | $20.34B | – | 7.4% |
| Cost of sales, 52 Weeks Ended August 29, 2026GAAP | 9,693,581 | – | – |
| Gross profit, 52 Weeks Ended August 29, 2026GAAP | 10,644,974 | – | – |
| Gross profit as a percentage of sales, 52 Weeks Ended August 29, 2026GAAP | 52.3% | – | – |
| Operating, SG&A expenses, 52 Weeks Ended August 29, 2026GAAP | 6,921,660 | – | – |
| Operating expenses as a percentage of sales, 52 Weeks Ended August 29, 2026GAAP | 34.0% | – | – |
| Operating profit (EBIT), 52 Weeks Ended August 29, 2026GAAP | 3,723,314 | – | 3.1% |
| Interest expense, net, 52 Weeks Ended August 29, 2026GAAP | 472,614 | – | – |
| Income before taxes, 52 Weeks Ended August 29, 2026GAAP | 3,250,700 | – | – |
| Income tax expense, 52 Weeks Ended August 29, 2026GAAP | 677,923 | – | – |
| Effective tax rate, Fiscal Year 2026GAAP | 20.9% | – | – |
| Net income, 52 Weeks Ended August 29, 2026GAAP | $2.57B | – | 3.0% |
| Basic net income per share, 52 Weeks Ended August 29, 2026GAAP | $ 156.11 | – | – |
| Diluted net income per share, 52 Weeks Ended August 29, 2026GAAP | $ 152.55 | – | 5.3% |
| Weighted average diluted shares outstanding, 52 Weeks Ended August 29, 2026GAAP | 16,865 | – | – |
| Total Company same store sales, 52 Weeks Ended August 29, 2026other | 4.5% | – | – |
| Total Company constant-currency same store sales, 52 Weeks Ended August 29, 2026other | 3.2% | – | – |
| EBITDAR, 52 Weeks Ended August 29, 2026non-GAAP | $5.04B | – | – |
| Adjusted debt, August 29, 2026non-GAAP | $12.50B | – | – |
| Adjusted debt to EBITDAR, 52 Weeks Ended August 29, 2026non-GAAP | 2.5 | – | – |
| Adjusted After-Tax ROIC, 52 Weeks Ended August 29, 2026non-GAAP | 35.8% | – | – |
| Cash flow from operations, 16 Weeks Ended August 29, 2026GAAP | 1,183,259 | – | – |
| Capital spending, 16 Weeks Ended August 29, 2026other | 498,769 | – | – |
| Cash flow from operations, 52 Weeks Ended August 29, 2026GAAP | 3,302,846 | – | – |
| Capital spending, 52 Weeks Ended August 29, 2026other | 1,496,255 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Domestic Commercial, 16 Weeks Ended August 29, 2026Average sales per program per week increased 2.7% versus last year to $ 18.7. | $1.91B | – | 8.6% |
| Domestic Commercial, 52 Weeks Ended August 29, 2026Average sales per program per week increased 6.0% versus last year to $ 17.7. | $5.76B | – | 10.6% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Under its share repurchase program, AutoZone repurchased 223 thousand shares of its common stock at an average price per share of $3,125, for a total investment of $697.5 million.
- For the fiscal year, the Company repurchased 579 thousand shares of its common stock, at an average price of $3,496, for a total investment of $2.0 billion.
- At year end, the Company had $1.6 billion remaining under its current share repurchase authorization.
- Cumulative share repurchases ($ since fiscal 1998) were $ 40,543,302 as of August 29, 2026, versus $ 38,517,689 as of August 30, 2025.
- Remaining share repurchase authorization ($) was 1,606,698 as of August 29, 2026, versus 632,311 as of August 30, 2025.
What drove it
- Fourth-quarter gross margin increased by 182 basis points, driven by a 145 basis point impact from tariff refunds and a 105 basis point net non-cash LIFO impact, partially offset by higher commercial mix.
- Fiscal-year gross margin was impacted by a 61 basis point net non-cash LIFO impact, partially offset by a 48 basis point benefit from tariff refunds.
- Domestic same store sales were 1.6% for the 16 weeks ended August 29, 2026, while international same store sales were 10.7%; international constant-currency same store sales were 1.3%.
- The Company opened 175 new stores during the quarter, including 97 in the U.S., 68 in Mexico and 10 in Brazil.
- For the fiscal year, the Company opened 374 new stores.
- Inventory increased 10.1% over the same period last year, driven primarily by growth initiatives.
Concerns
- Operating expenses as a percentage of sales were 33.4% in the fourth quarter versus 32.4% last year, with deleverage primarily driven by growth initiatives.
- Fiscal-year gross profit as a percentage of sales was 52.3% versus 52.6% last year.
- Total Company constant-currency same store sales were 1.5% for the quarter, versus 5.1% in the prior-year quarter.
- Management described the first eight weeks of the quarter as a difficult selling environment.
- Adjusted After-Tax ROIC was 35.8% versus 41.3% in the prior year.
- Inventory turns were 1.3 x versus 1.4 x on a trailing five-quarter basis.
What to watch
- Whether sales results continue to strengthen after the improvement management cited in the last eight weeks of the quarter.
- Domestic and international same-store sales, including the gap between reported international same-store sales and constant-currency growth.
- The sustainability of gross-margin support from tariff refunds and the net non-cash LIFO impact.
- Operating-expense leverage as the Company continues its growth initiatives and store expansion.
- Execution of the store-opening program following 374 new stores opened during fiscal 2026.
- Inventory growth, inventory turns and accounts payable/inventory, which was 111.1% versus 114.2%.
Balance sheet and cash flow
- Cash and cash equivalents were $ 326,115 as of August 29, 2026, versus $ 271,803 as of August 30, 2025.
- Merchandise inventories were 7,735,560 versus 7,025,688.
- Accounts payable were 8,596,585 versus 8,025,590.
- Total Debt was 9,078,320 versus 8,799,775.
- Working capital was (1,000,396) versus (1,178,018).
- Property and equipment, net was 8,056,120 versus 7,062,509.
- Total assets were 21,630,510 versus 19,355,324.
- Stockholders' deficit was (2,502,470) versus (3,414,313).
- Cash flow from operations was 1,183,259 for the 16 weeks ended August 29, 2026, versus 990,819 in the prior-year period, and 3,302,846 for the 52 weeks ended August 29, 2026, versus 3,155,401.
- Capital spending was 498,769 for the 16 weeks ended August 29, 2026, versus 479,698 in the prior-year period, and 1,496,255 for the 52 weeks ended August 29, 2026, versus 1,365,321.
Analysis
AutoZone reported fourth-quarter net sales of $ 6,594,879, up 5.6%, and operating profit of 1,316,917, up 10.1%. Net income was $ 931,587 versus $ 836,951, while diluted net income per share rose to $ 56.05 from $ 48.71. Total Company same-store sales were 2.7%, or 1.5% on a constant-currency basis. Management said the first eight weeks presented a difficult selling environment, but sales results strengthened over the final eight weeks.
Quarterly gross profit as a percentage of sales was 53.3%, an increase of 182 basis points versus the prior year. The filing attributes the improvement to a 145 basis point impact from tariff refunds and a 105 basis point net non-cash LIFO impact, partly offset by higher commercial mix. Operating expenses were 33.4% of sales versus 32.4%, with deleverage primarily driven by growth initiatives. This combination of improved gross margin and expense deleverage produced operating-profit growth faster than sales growth.
For fiscal 2026, net sales were $ 20,338,555, up 7.4%, and total Company constant-currency same-store sales were 3.2%. Operating profit increased 3.1% to 3,723,314, net income increased 3.0% to $ 2,572,777 and diluted net income per share increased 5.3% to $ 152.55. Annual gross profit as a percentage of sales declined to 52.3% from 52.6%, reflecting a 61 basis point net non-cash LIFO impact partly offset by a 48 basis point benefit from tariff refunds. Annual operating expenses also rose as a share of sales to 34.0% from 33.6%.
Commercial sales remained a source of growth. Total domestic commercial sales were $ 1,912,981 in the quarter, up 8.6%, and $ 5,762,414 for the fiscal year, up 10.6%. The Company added 175 stores during the quarter and 374 during the fiscal year, ending with 8,031 total stores. Inventory increased 10.1% over the same period last year, which the Company said was driven primarily by growth initiatives, while trailing five-quarter inventory turns were 1.3 x versus 1.4 x.
Capital allocation remained centered on repurchases, with $697.5 million invested in 223 thousand shares during the quarter and $2.0 billion invested in 579 thousand shares during the fiscal year. Cash flow from operations was 3,302,846 for the year and capital spending was 1,496,255. Total Debt was 9,078,320, adjusted debt to EBITDAR was 2.5, and adjusted After-Tax ROIC was 35.8% versus 41.3%. The release did not provide quantified fiscal 2027 financial guidance, though management said it expects sales in each of its three operating countries to accelerate in the new fiscal year.
Management, verbatim
I want to thank our entire organization for delivering another quarter of sales and earnings growth.
Phil Daniele, President and Chief Executive Officer
Over the last eight weeks of the quarter our sales results strengthened, and we feel we are well positioned for sales growth in fiscal 2027.
Phil Daniele, President and Chief Executive Officer
Based on the data we have, we continued to gain share and we expect sales in each of the three countries in which we operate to accelerate in the new fiscal year.
Phil Daniele, President and Chief Executive Officer
Not in the filing
stated, not guessed- Forward financial guidance for fiscal 2027, including revenue, same-store sales, gross margin, operating expenses, tax rate, capital spending and store-opening targets.
- Prior outlook or guidance was not provided, so no comparison of actual results with prior guidance is available.
- Free cash flow was not reported.
- Dividend declaration or payment information was not reported.
- Quarterly effective tax rate was not reported.
- Revenue by geographic operating segment was not reported.
- Prior-quarter financial statement comparisons were not reported, except net inventory per store was described as negative $107 thousand last quarter.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
AutoZone filed an SEC Form 8‑K reporting its Q4 2026 results and FY guidance, including a $2.0 B share repurchase program.
Ticker impact
AutoZone reported Q4 net sales of $6.6B, EPS $56.05 and FY2026 guidance, plus a $2.0B share repurchase, providing fresh earnings data.
Potential short-term price rally on earnings beat and buyback news.
Quarterly results exceed prior year, EPS up ~15%, and sizable share repurchase signals confidence, likely attracting buyers.
Market effects
Auto parts retail sector may see broader optimism as a leading player reports strong growth.
U.S. retail and consumer discretionary markets could benefit from the upbeat earnings.
Limited to North American markets; no immediate global macro effect.
Counterpoint
Investors may question sustainability of high EPS given elevated share price and potential margin pressure from inventory growth.
Key entities
- companyAutoZone Inc.
Leading automotive parts retailer reporting Q4 2026 results.
- executivePhil Daniele
President and CEO of AutoZone, provided commentary on results.
