AutoZone Q4 Earnings Beat Estimates on Tariff Refunds, Sales Miss

AutoZone (AZO) reported Q4 2026 earnings with net sales up 5.6% YoY to $6.6B, operating profit up 10.1% to $1.3B, and EPS up to $56.05, beating expectations. Gross margin improved to 53.3%. The company opened 175 new stores, including 16 Mega Hubs. Management remains optimistic despite economic challenges. Shares rose 3.26% post-earnings but are down 30% over the past year. Analysts are mostly bullish with a median price target of $3,914.50, suggesting 35% upside.

Mizuho lowered its price target on AutoZone from $3,200 to $3,000, keeping a neutral rating. The stock has risen 3.26% in 5 days and 1.21% year-to-date, but is down 14.65% from its 1-year high.

Guggenheim reaffirmed a Buy rating on AutoZone with a $3750 price target, implying a 29.5% upside from the Sep 22 close. The firm cited strong valuation metrics and a positive growth outlook, including expected sales re-acceleration and strategic initiatives.

TD Cowen cut AutoZone's (AZO) price target to $3,400, citing same-SKU inflation and DIY focus. AZO trades near its 52-week low, down 30% YTD. Q4 earnings beat estimates, but revenue missed. Evercore ISI maintained an Outperform rating with a $3,500 target. AZO's P/E ratio is 20, slightly above fair value.

Evercore ISI reiterated an Outperform rating on AutoZone (AZO) with a $3,500 price target. The stock is near its 52-week low, down 30% over the past year. The firm expects improved trends in 2027, with decelerated inflation and adjusted store growth targets. AutoZone's Q4 2026 earnings beat estimates, though revenue missed slightly. Gross margins are expected to expand modestly despite headwinds.

AutoZone (AZO) reported Q3 CY2026 revenue of $6.59B, up 5.6% YoY but missing estimates. Non-GAAP EPS of $56.05 beat forecasts by 4.1%. Growth was driven by commercial sales and store expansion, while DIY sales faced inflation-related challenges. The company plans to open more stores and invest in technology. AZO stock is up to $2,896.