AutoZone Earnings Beat; Revenue Mixed
AutoZone earnings showed an EPS beat driven by tariff refunds and a net noncash LIFO benefit, a mixed release that could prompt trading reweights.
KEY TAKEAWAYS
- Diluted EPS was $56.05, exceeding cited consensus while revenue compared unevenly with estimates.
- Gross margin expanded, with a 145-bp tariff-refund benefit and a 105-bp net noncash LIFO benefit.
- The release provided no formal fiscal-2027 guidance and scheduled a conference call to discuss.
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AutoZone earnings showed stronger fourth-quarter EPS, the company said on Sept. 22, 2026, with the official release citing margin gains tied to tariff refunds and inventory accounting while offering no formal fiscal-2027 guidance.
Fourth-Quarter Results and Margin Drivers
AutoZone, Inc. (AZO) reported revenue of $6.6 billion for the 16-week quarter ended Aug. 29, 2026, a 5.6% increase year over year, the company said in a Sept. 22 press release. Diluted EPS rose to $56.05 from $48.71 a year earlier, while net income increased to $931.6 million from $837.0 million. Same-store sales, covering stores open at least one year, rose 1.5% companywide and 1.6% domestically. The release did not provide formal fiscal-2027 guidance, and the company scheduled a conference call to discuss the results.
Gross margin expanded 182 basis points to 53.3% of sales. The company attributed this to a 145-basis-point benefit from tariff refunds and a 105-basis-point net noncash LIFO (last-in, first-out) inventory accounting benefit, partly offset by a higher commercial sales mix. Operating expenses rose to 33.4% of sales from 32.4% a year earlier, driven mainly by growth initiatives. Operating profit increased about 10.1% to roughly $1.3 billion.
For the fiscal year ended Aug. 29, 2026, AutoZone reported sales of $20.3 billion, up 7.4%. Operating profit rose 3.1% to about $3.7 billion, net income increased 3.0% to roughly $2.6 billion, and diluted EPS climbed 5.3% to $152.55 from $144.87.
Secondary reporting showed the quarter’s EPS exceeded cited consensus estimates, while revenue fell short of those forecasts. A secondary analysis attributed to Chief Executive Officer Phil Daniele an expectation that sales in the United States, Mexico, and Brazil would accelerate in fiscal 2027.
