10-QPeriod: Q2 FY2026

AUTOZONE INC Quarterly Report for Q2 Ended Feb 14, 2026

Filed March 20, 2026For Securities:AZO

Summary

AutoZone, Inc. (AZO) reported its second-quarter fiscal year 2026 results, showcasing a notable 8.1% increase in net sales, reaching $4.3 billion. 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 million, 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 billion, 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.

Financial Highlights

44 data points
Beta

Revenue

$4.27B

52.5% Gross Margin

Net Income

$468.86M

11.0% Net Margin

EPS (Diluted)

$27.63

Total Assets

$20.44B

Cash & Equivalents

$285.49M

Free Cash Flow

$35.63M

Financial Statements
Beta
Revenue$4.27B
Cost of Revenue$2.03B
Gross Profit$2.24B
SG&A Expenses$1.54B
Operating Income$698.46M
Net Income$468.86M
EPS (Basic)$28.29
EPS (Diluted)$27.63
Shares Outstanding (Basic)16.57M
Shares Outstanding (Diluted)16.97M

Key Highlights

  • 1Net sales increased by 8.1% to $4.3 billion for the twelve weeks ended February 14, 2026, compared to the prior year period.
  • 2Total company same-store sales increased by 3.3% on a constant currency basis for the quarter.
  • 3Operating profit decreased by 1.2% to $698.5 million, primarily due to an unfavorable non-cash LIFO charge of $59.0 million.
  • 4Net income decreased by 3.9% to $468.9 million, and diluted earnings per share decreased by 2.3% to $27.63 for the quarter.
  • 5Merchandise inventories increased by 6.5% to $7.5 billion compared to the prior year's end.
  • 6Capital 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.
  • 7The company repurchased $741.7 million of its common stock during the twenty-four week period ended February 14, 2026.

Frequently Asked Questions

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.

Profitability was negatively impacted by an unfavorable non-cash LIFO charge of $59.0 million, which reduced gross profit margin and consequently operating profit.

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.

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.