EarningsQ4 2026 Earnings Report
MX:AZO Q4 2026 EPS Results
Actual EPS$1014.24
Consensus EPS$978.67
Beat/MissBeat by +$35.58
One Year Ago EPS$881.42
MX:AZO Q4 2026 Revenue Results
Actual Revenue$119.34B
Expected Revenue$121.28B
Beat/MissMissed by -$1.94B
YoY Revenue Growth+5.64%
Earnings Announcement Details
QuarterQ4 2026
Date09/22/2026
TimeBefore Open
Conference CallTuesday, September 22, 2026
MX:AZO Upcoming Earnings
AutoZone's next earnings date is estimated for December 8, 2026, based on past reporting schedules.
Q4 2026 Earnings Call Audio
MX:AZO Q4 2026 Earnings Call
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Q4 2026 Earnings Slide Deck
Q4 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. AutoZone reported record annual sales, strong EBIT and EPS growth, continued domestic commercial market-share gains, record store expansion, improving international trends, strong cash generation, and new-store performance ahead of forecast. The primary challenges were domestic DIY transaction declines, inflation and macroeconomic pressure, expense deleverage, near-term ROIC pressure from accelerated growth, volatile LIFO and tariff comparisons, and a slower Brazil expansion plan. Management nevertheless expressed confidence in improving sales momentum and FY 2027 growth prospects.Company Guidance
Record Annual Sales and Strong Quarterly Earnings Growth
Q4 total sales were $6.6 billion, up 5.6% versus the prior year. Total company EBIT increased 10.1%, net income rose 11.3% to $932 million, and diluted EPS increased 15.1% to $56.05. For FY 2026, sales reached an all-time high of $20.3 billion, up 7.4%, while EPS was $152.55, up 5.3%.
Domestic Commercial Business Continued to Gain Momentum
Domestic commercial sales increased just under 9% in Q4 to $1.9 billion and represented 34% of domestic auto parts sales and 29% of total company sales. Commercial sales grew nearly 11% for FY 2026, with Q4 growth accelerating from just over 8% during the first three months to well over 9% in the final month.
Commercial Program and Mega Hub Expansion
AutoZone opened 87 net new commercial programs in Q4 and 345 during FY 2026, ending with 6,443 programs covering 94% of domestic stores. The company opened 16 Mega Hubs in Q4 and 39 during the year, ending with 172 Mega Hubs, and expects to open over 40 in FY 2027. Approximately 2,000 commercial programs linked to a Mega Hub network sell 16% more annually than the balance of the commercial programs.
Market Share Gains and Improved Commercial Execution
Management stated that sales initiatives are driving market share gains, particularly with smaller UDS customers. Commercial growth was supported by improved satellite-store inventory availability, expanded hub and Mega Hub coverage, the continued strength of the Duralast brand, and initiatives to improve delivery speed and customer service.
Record Store Openings and Global Store Milestones
AutoZone opened 175 stores in Q4 and 374 during FY 2026, compared with 304 in FY 2025, making 374 the most stores opened in a fiscal year. The company celebrated its 1,000th store in Mexico, ended the year with more than 8,000 total stores, and expects to open approximately 400 stores globally in FY 2027 versus 374 in FY 2026.
International Footprint and Expected Reacceleration
AutoZone ended Q4 with 1,001 stores in Mexico and 167 in Brazil, for a total international store count of 1,168. International same-store sales increased 1.3% on a constant-currency basis and 10.7% unadjusted, with exchange rates contributing over 900 basis points. Management reported an uptick in sales during the last four weeks of the quarter and expects low double-digit same-store sales growth in Q1 on a constant-currency basis.
New Store Economics Ahead of Forecast
Management said the early performance of accelerated store investments is better than the original forecast and should allow the company to achieve its EBIT goals sooner. Average first-year sales for the average store format are roughly $1.7 million, ramping to roughly $2.7 million by year six. Expected ROIC is approximately 15% by the end of year four and over 20% by the end of year six.
Continued Strategic Investment in Growth and Infrastructure
AutoZone invested approximately $1.5 billion in CapEx during FY 2026 and expects to invest a similar amount in FY 2027; elsewhere, management described planned FY 2027 CapEx of around $1.65 billion. Investments are focused primarily on accelerated store growth, hubs and Mega Hubs, product assortment, supply-chain efficiency, customer service, execution, and technology.
Supply Chain and Technology Milestones
The expanded Monterrey, Mexico distribution center opened and is more than twice the size of the prior facility. AutoZone also broke ground on a new León, Mexico distribution center expected to come online in late FY 2028. U.S. distribution-center expansion is complete, the new Brazil distribution center is reducing supply-chain costs in country, and technology upgrades are predominantly complete with scalable, resilient, cloud-based platforms ready to support customer service and efficiency initiatives.
Strong Cash Generation, Liquidity, and Share Repurchases
Q4 free cash flow was $684 million versus $511 million in the prior-year quarter. FY 2026 free cash flow was approximately $1.8 billion, roughly flat year over year despite a $169 million increase in CapEx, while operating cash flow exceeded $3.3 billion. AutoZone repurchased $697 million of stock in Q4 and $2 billion for the fiscal year, had $1.6 billion remaining under its buyback authorization, and ended the quarter with a strong liquidity position and leverage of 2.5x EBITDAR.
Gross Margin Improvement
Q4 gross margin was 53.3%, up 182 basis points versus the prior year. Excluding LIFO, gross margin increased 76 basis points, benefiting from $96 million of tariff reimbursements. For FY 2027, management expects gross margins to be flat to up 25 basis points on a GAAP basis and described the business as positioned to drive gross-margin improvement through supply-chain and merchandising initiatives.
FY 2027 Growth Outlook
Management expects FY 2027 domestic same-store sales to be flat to up low single digits, domestic commercial sales to grow high single to low double digits, and international same-store sales to grow low to mid-single digits on a constant-currency basis. The company expects approximately 4% ticket growth and believes DIY transactions will improve as elevated inflation moderates.
MX:AZO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed