AutoZone Q3 Earnings: EPS Tops, Revenue Miss

AutoZone Q3 earnings showed stronger-than-expected profit and rising same-store sales, the company said in a May 26, 2026 press release, even as its revenue figure modestly missed Street forecasts.

Quarter Results and Profitability

AutoZone, Inc. (NYSE: AZO) reported net sales of $4.8 billion for the 12 weeks ended May 9, 2026, an 8.4% increase from a year earlier. Diluted earnings per share rose to $38.07, surpassing consensus near $36.2. Gross margin contracted by 57 basis points to 52.2%.

Operating profit increased about 6% year over year to roughly $924 million, while net income reached approximately $642 million. Operating expenses accounted for 33.1% of sales. The results reflect strong bottom-line growth despite margin pressures from product mix and supply-chain factors.

Sales Drivers and Capital Returns

Total company same-store sales rose 3.9%, led by a 4.1% increase in domestic stores and a 16.6% gain in international constant-currency sales. Management attributed growth mainly to gains in its commercial (business-to-business) segment, expanded parts availability, and store footprint expansion. Mild late-quarter weather weighed on demand in some seasonal categories. AutoZone opened 82 new stores during the quarter.

Operating leverage and tighter expense control helped offset gross-margin compression, supporting the rise in operating profit. The company repurchased about 164,000 shares, spending roughly $586 million on buybacks. Shares outstanding were approximately 16.4 million at quarter end. This combination of aggressive buybacks and ongoing store expansion highlights management’s focus on returning cash to shareholders and pursuing share gains despite margin pressures.