01—Abstract
Summary
Summary of the 10-Q filed March 20, 2026. Cited figures are marked; the original filing is the authoritative source.
AutoZone, Inc. (AZO) reported its second-quarter fiscal year 2026 results, showcasing a notable 8.1% increase in net sales, reaching $4.3 billiona.
This growth was primarily driven by a 3.3% increase in same-store sales on a constant currency basis and contributions from new store openings. Despite top-line growth, operating profit saw a slight decrease of 1.2% to $698.5 millionb, impacted by an unfavorable $59.0 million non-cash LIFO charge. Consequently, net income declined by 3.9% to $468.9 million, and diluted earnings per share decreased by 2.3% to $27.63.
The company's balance sheet reflects a 5.9% increase in total assets to $20.4 billionc, largely due to a 6.5% rise in merchandise inventories and a significant increase in property and equipment. However, total liabilities also grew, with accounts payable increasing by 3.4% and long-term debt showing a slight rise. The company's liquidity remains strong, with $285.5 million in cash and cash equivalents and substantial availability under its revolving credit facility.
02—Key points
Key Highlights
- Net sales increased by 8.1% to $4.3 billion for the twelve weeks ended February 14, 2026, compared to the prior year period.
- Total company same-store sales increased by 3.3% on a constant currency basis for the quarter.
- Operating profit decreased by 1.2% to $698.5 million, primarily due to an unfavorable non-cash LIFO charge of $59.0 million.
- Net income decreased by 3.9% to $468.9 million, and diluted earnings per share decreased by 2.3% to $27.63 for the quarter.
- Merchandise inventories increased by 6.5% to $7.5 billion compared to the prior year's end.
- Capital expenditures increased to $652.0 million for the twenty-four week period ended February 14, 2026, from $539.7 million in the prior year, driven by investments in new stores and expansion projects.
- The company repurchased $741.7 million of its common stock during the twenty-four week period ended February 14, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, AutoZone Inc kept $0.11.
- Revenue$4.27B100.0%
- Cost of revenue−$2.03B47.5%
- Gross profit$2.24B52.5%
- Operating costs−$1.54B36.1%
- Operating income$698.5M16.3%
- Interest, other & tax−$229.6M5.4%
- Net income$468.9M11.0%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed March 20, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $4.27B$3.95B | +8.1% |
| Cost of Revenue | $2.03B$1.82B | +11.4% |
| Gross Profit | $2.24B$2.13B | +5.4% |
| SG&A Expenses | $1.54B$1.42B | +8.7% |
| Operating Income | $698.46M$706.77M | −1.2% |
| Net Income | $468.86M$487.92M | −3.9% |
| EPS (Basic) | $28.29$29.06 | −2.6% |
| EPS (Diluted) | $27.63$28.29 | −2.3% |
| Shares Outstanding (Basic) | 16.57M16.79M | −1.3% |
| Shares Outstanding (Diluted) | 16.97M17.25M | −1.6% |
05—Questions
Frequently Asked Questions
What was the primary driver of AutoZone's sales growth in the latest quarter?
The primary driver of AutoZone's sales growth was an increase in total company same-store sales by 3.3% on a constant currency basis, supplemented by net sales from new domestic and international stores and a 9.8% increase in domestic commercial sales.
What negatively impacted AutoZone's profitability in the second quarter of fiscal year 2026?
Profitability was negatively impacted by an unfavorable non-cash LIFO charge of $59.0 million, which reduced gross profit margin and consequently operating profit.
How is AutoZone managing its liquidity and capital resources?
AutoZone maintains strong liquidity with $285.5 million in cash and cash equivalents and $2.2 billion in undrawn capacity on its revolving credit facility. The company expects its operating cash flows, available credit, and long-term borrowings to be sufficient to fund operations, strategic investments, and shareholder returns through share repurchases.
What is the company's outlook on macroeconomic factors and their impact on business?
AutoZone acknowledges that its business is impacted by various macroeconomic factors such as inflation, interest rates, consumer debt, fuel costs, and supply chain disruptions. While these factors are largely outside its control, the company monitors their potential impact and believes its long-term market growth is correlated with miles driven and the age of vehicles on the road.
06—Continue