01—Abstract
Summary
Summary of the 10-Q filed December 19, 2025. Cited figures are marked; the original filing is the authoritative source.
Autozone Inc. (AZO) reported its financial results for the twelve weeks ended November 22, 2025.
The company experienced a 8.2% increase in net sales, reaching $4.6 billiona, driven by both domestic and international same-store sales growth and contributions from new store openings. However, operating profit saw a decrease of 6.8% to $784.2 million, primarily impacted by an unfavorable non-cash LIFO (Last-In, First-Out) adjustment of $98.0 million. Consequently, net income declined by 6.0% to $530.8 million, and diluted earnings per share decreased by 4.6% to $31.04.
Despite the dip in profitability due to the LIFO impact, Autozone maintained a strong operational stance with robust cash flow generation from operating activities ($944.2 millionb). The company continued its strategic investments in growth initiatives, including new store openings and hub/mega hub expansions, leading to an increase in capital expenditures.
Autozone also actively returned capital to shareholders through its share repurchase program, although the pace slightly moderated compared to the prior year. The company maintains significant liquidity with $287.6 millionc in cash and cash equivalents and substantial availability under its revolving credit facility.
02—Key points
Key Highlights
- Net sales increased by 8.2% to $4.6 billion for the twelve-week period ended November 22, 2025, compared to the prior year.
- Operating profit decreased by 6.8% to $784.2 million, largely due to a $98.0 million non-cash LIFO charge.
- Net income decreased by 6.0% to $530.8 million, with diluted earnings per share falling 4.6% to $31.04.
- Total company same store sales grew by 4.7% on a constant currency basis.
- Capital expenditures increased to $314.2 million, reflecting investments in growth initiatives and new store openings.
- The company generated $944.2 million in cash flow from operating activities.
- Autozone repurchased $427.2 million of its common stock during the period.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, AutoZone Inc kept $0.11.
- Revenue$4.63B100.0%
- Cost of revenue−$2.27B49.0%
- Gross profit$2.36B51.0%
- Operating costs−$1.58B34.0%
- Operating income$784.2M16.9%
- Interest, other & tax−$253.4M5.5%
- Net income$530.8M11.5%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed December 19, 2025Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $4.63B$4.28B | +8.2% |
| Cost of Revenue | $2.27B$2.01B | +12.8% |
| Gross Profit | $2.36B$2.27B | +4.0% |
| SG&A Expenses | $1.58B$1.43B | +10.4% |
| Operating Income | $784.21M$841.15M | −6.8% |
| Net Income | $530.82M$564.93M | −6.0% |
| EPS (Basic) | $31.88$33.40 | −4.6% |
| EPS (Diluted) | $31.04$32.52 | −4.6% |
| Shares Outstanding (Basic) | 16.65M16.91M | −1.5% |
| Shares Outstanding (Diluted) | 17.10M17.37M | −1.5% |
05—Questions
Frequently Asked Questions
What was the primary driver for the decrease in operating profit?
The primary driver for the decrease in operating profit was an unfavorable non-cash LIFO (Last-In, First-Out) adjustment of $98.0 million. This adjustment impacts the cost of goods sold and reduces reported profit without affecting cash flow.
How did Autozone's sales perform in different segments?
Autozone reported a total company same store sales increase of 4.7% on a constant currency basis. Domestic same store sales grew 4.8%, while international same store sales saw a 3.7% increase (11.2% on a constant currency basis). Domestic commercial sales also showed strong growth, increasing by 14.5%.
What is Autozone's liquidity position?
Autozone maintains a strong liquidity position with $287.6 million in cash and cash equivalents as of November 22, 2025. Additionally, the company has $2.2 billion in undrawn capacity available under its revolving credit facility, providing ample resources for operations and strategic investments.
What is the outlook for capital expenditures?
Autozone expects to increase its investment in the business during fiscal year 2026. Capital expenditures are primarily directed towards growth initiatives, including opening new stores and expanding hub and mega hub store projects.
06—Continue