AUTOZONE INC (AZO): Results of Operations and Financial Condition
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 increased to $56.05. Gross margin expanded 182 basis points, while operating expenses deleveraged to 33.4% of sales. Same-store sales growth was 1.5% on a constant-currency basis, following a difficult selling environment in the first eight weeks of the quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, 16 Weeks Ended August 29, 2026GAAP | $ 6,594,879 | – | 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% | – | an 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 | $ 931,587 | – | – |
| 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 | – | – |
| Net sales, 52 Weeks Ended August 29, 2026GAAP | $ 20,338,555 | – | 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 | – | – |
| Net income, 52 Weeks Ended August 29, 2026GAAP | $ 2,572,777 | – | 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% |
| EBITDAR, 52 Weeks Ended August 29, 2026non-GAAP | $ 5,044,403 | – | – |
| Adjusted debt, August 29, 2026non-GAAP | $ 12,495,768 | – | – |
| Adjusted debt to EBITDAR, August 29, 2026non-GAAP | 2.5 | – | – |
| Adjusted After-Tax ROIC, 52 Weeks Ended August 29, 2026non-GAAP | 35.8 % | – | – |
| Effective tax rate, fiscal 2026GAAP | 20.9% | – | – |
| Cash flow from operations, 16 Weeks Ended August 29, 2026GAAP | 1,183,259 | – | – |
| Capital spending, 16 Weeks Ended August 29, 2026GAAP | 498,769 | – | – |
| Cash flow from operations, 52 Weeks Ended August 29, 2026GAAP | 3,302,846 | – | – |
| Capital spending, 52 Weeks Ended August 29, 2026GAAP | 1,496,255 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Domestic CommercialAverage sales per program per week was $ 18.7 and increased 2.7 % versus last year for the 16 weeks ended August 29, 2026. | $ 1,912,981 | – | 8.6 % |
Capital returns
- 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 versus $ 38,517,689.
- Remaining share repurchase authorization ($) was 1,606,698 versus 632,311.
What drove it
- Fourth-quarter gross-margin expansion was 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.
- Operating-expense deleverage in the quarter was primarily driven by growth initiatives.
- Domestic same-store sales increased 1.6 % for the quarter and 3.3 % for the fiscal year.
- International same-store sales increased 10.7 % for the quarter and 13.5 % for the fiscal year. International constant-currency same-store sales increased 1.3 % for the quarter and 2.2 % for the fiscal year.
- Total Company constant-currency same-store sales increased 1.5 % for the quarter and 3.2 % for the fiscal year.
- The Company opened 175 new stores during the quarter, including 16 new Mega Hub stores in the U.S.
- The Company opened 374 new stores for the fiscal year.
Concerns
- Management cited a difficult selling environment in the first eight weeks of the quarter.
- Quarterly operating expenses as a percentage of sales were 33.4% versus last year at 32.4%.
- Fiscal-year gross profit as a percentage of sales was 52.3% versus last year at 52.6%.
- Fiscal-year operating expenses as a percentage of sales were 34.0% versus last year at 33.6%.
- Inventory turns were 1.3 x versus 1.4 x.
What to watch
- Whether sales strength reported over the last eight weeks of the quarter continues into fiscal 2027.
- Domestic and international same-store sales, including the difference between reported international growth and constant-currency growth.
- The impact of higher commercial mix on gross margin.
- Execution of growth initiatives, including new-store openings, Mega Hub stores, inventory availability, speed of delivery and customer service.
- Inventory growth, inventory turns, and net inventory per store.
- The remaining $1.6 billion under the current share repurchase authorization.
Balance sheet and cash flow
- Cash and cash equivalents were $ 326,115 versus $ 271,803.
- Merchandise inventories were 7,735,560 versus 7,025,688.
- Total assets were 21,630,510 versus 19,355,324.
- Accounts payable were 8,596,585 versus 8,025,590.
- Total Debt was 9,078,320 versus 8,799,775.
- Stockholders' deficit was (2,502,470 ) versus (3,414,313 ).
- Working capital was (1,000,396 ) versus (1,178,018 ).
- Inventory increased 10.1% over the same period last year, driven primarily by growth initiatives.
- Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $107 thousand versus negative $131 thousand last year and negative $107 thousand last quarter.
- Accounts payable/inventory was 111.1 % versus 114.2 %.
- Inventory turns were 1.3 x versus 1.4 x.
Analysis
AutoZone reported fourth-quarter net sales of $ 6,594,879, up 5.6% from $ 6,242,726, with total Company same-store sales up 2.7 % and up 1.5 % on a constant-currency basis. Domestic same-store sales rose 1.6 %, while international same-store sales increased 10.7 % but only 1.3 % on a constant-currency basis. Management described a difficult selling environment during the first eight weeks of the quarter, followed by strengthened sales results over the final eight weeks.
Profit growth exceeded sales growth in the quarter. Gross profit as a percentage of sales increased to 53.3% from 52.6%, supported by a 145 basis point tariff-refund impact and a 105 basis point net non-cash LIFO impact, partly offset by higher commercial mix. Operating expenses rose to 33.4% of sales from 32.4%, with deleverage primarily driven by growth initiatives. Operating profit increased 10.1% to $1.3 billion, net income was $931.6 million compared with $837.0 million, and diluted EPS was $56.05 compared with $48.71.
For fiscal 2026, net sales were $20.3 billion, an increase of 7.4%, while total Company same-store sales increased 4.5 % and 3.2 % on a constant-currency basis. Annual gross margin declined to 52.3% from 52.6%, as a 61 basis point net non-cash LIFO impact exceeded a 48 basis point tariff-refund benefit. Annual operating expenses were 34.0% of sales compared with 33.6%, and operating profit increased 3.1% to $3.7 billion. Net income increased 3.0% to $2.6 billion and diluted EPS increased 5.3% to $152.55 from $144.87.
The company continued to invest in footprint expansion and commercial capabilities. It opened 175 stores in the quarter, including 97 in the U.S., 68 in Mexico and 10 in Brazil, bringing total stores to 8,031. Fiscal-year store openings were 374. Domestic commercial sales were $ 1,912,981 in the quarter, an 8.6 % increase versus last year, and fiscal-year domestic commercial sales were $ 5,762,414, a 10.6 % increase versus last year. Management identified inventory offering, delivery speed and customer service as operating priorities.
Capital allocation remained focused on repurchases. AutoZone repurchased 223 thousand shares for $697.5 million during the quarter and 579 thousand shares for $2.0 billion during the fiscal year, leaving $1.6 billion under the authorization. Cash and cash equivalents were $ 326,115 and Total Debt was 9,078,320. Inventory increased 10.1%, while inventory turns were 1.3 x versus 1.4 x. Management said it expects sales in each of its three countries to accelerate in the new fiscal year, but the release provided no quantitative fiscal 2027 guidance.
Management, verbatim
I want to thank our entire organization for delivering another quarter of sales and earnings growth. In spite of a difficult selling environment the first eight weeks of our quarter, we remained committed to executing on our strategies to grow both our domestic and international businesses.
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- Quantitative fiscal 2027 revenue guidance
- Quantitative fiscal 2027 gross-margin guidance
- Quantitative fiscal 2027 operating-expense guidance
- Quantitative fiscal 2027 tax-rate guidance
- Quantitative fiscal 2027 EPS guidance
- Prior-period outlook for comparison
- Free cash flow
- Dividend information
- Quarterly effective tax rate
- Geographic revenue by domestic, Mexico and Brazil
- Prior-quarter figures for income statement metrics
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.
