10-QPeriod: Q3 FY2026

AUTOZONE INC Quarterly Report for Q3 Ended May 9, 2026

Filed June 12, 2026For Securities:AZO

Summary

AutoZone Inc. reported a solid performance for the third quarter of fiscal year 2026, with net sales increasing by 8.4% to $4.8 billion compared to the prior year period. This growth was driven by a 3.9% increase in same-store sales and contributions from new store openings. Despite a slight decrease in gross margin percentage due to LIFO impacts, operating profit saw a modest increase, and diluted earnings per share rose by 7.7% to $38.07. The company continues to focus on growth initiatives, including store expansion, and maintains a strong liquidity position with significant cash on hand and available credit. For the first thirty-six weeks of fiscal 2026, net sales reached $13.7 billion, an 8.3% increase year-over-year, with same-store sales growing by 4.0%. While net income saw a slight decrease over this longer period, primarily due to increased investments in growth initiatives and a larger unfavorable LIFO impact, the company's overall financial health remains robust. AutoZone continues its aggressive share repurchase program, demonstrating a commitment to returning value to shareholders.

Financial Highlights

45 data points
Beta

Revenue

$4.84B

52.2% Gross Margin

Net Income

$641.49M

13.3% Net Margin

EPS (Diluted)

$38.07

Total Assets

$20.92B

Cash & Equivalents

$253.73M

Free Cash Flow

$456.48M

Financial Statements
Beta
Revenue$4.84B
Cost of Revenue$2.32B
Gross Profit$2.52B
SG&A Expenses$1.60B
Operating Income$923.76M
Net Income$641.49M
EPS (Basic)$38.95
EPS (Diluted)$38.07
Shares Outstanding (Basic)16.47M
Shares Outstanding (Diluted)16.85M

Key Highlights

  • 1Net sales increased 8.4% to $4.8 billion for the twelve weeks ended May 9, 2026, compared to the prior year.
  • 2Diluted earnings per share (EPS) rose 7.7% to $38.07 for the twelve weeks ended May 9, 2026.
  • 3Total company same store sales increased by 3.9% on a constant currency basis for the twelve weeks ended May 9, 2026.
  • 4Gross margin percentage slightly decreased to 52.2% from 52.7% due to LIFO impacts.
  • 5Operating profit increased 6.6% to $923.8 million for the twelve weeks ended May 9, 2026.
  • 6Capital expenditures increased to $997.5 million for the thirty-six weeks ended May 9, 2026, primarily for growth initiatives.
  • 7The company continues its share repurchase program, with $0.8 billion remaining authorization as of May 9, 2026.

Frequently Asked Questions

AutoZone's sales growth in the third quarter was driven by a 3.9% increase in total company same-store sales on a constant currency basis, along with net sales of $129.0 million from new domestic and international stores. Domestic commercial sales also saw a significant increase of 10.4%.

For the third quarter, net income increased by 5.4% to $641.5 million, and diluted EPS grew by 7.7% to $38.07. However, for the first thirty-six weeks of fiscal 2026, net income decreased slightly due to increased investments in growth initiatives and a higher unfavorable LIFO impact, though diluted EPS still saw a marginal increase.

AutoZone maintains a strong liquidity position with $253.7 million in cash and cash equivalents and $2.2 billion in undrawn capacity on its Revolving Credit Agreement. The company plans to fund operations, strategic investments, and share repurchases through internally generated funds and available credit. Capital expenditures are expected to increase in fiscal 2026, primarily directed towards new stores and expansion projects.

The U.S. Supreme Court invalidated certain tariffs imposed under IEEPA, and AutoZone has filed for refunds of these tariffs. However, the scope and duration of new tariffs introduced under different statutory authority remain uncertain. The company continues to monitor the potential impacts on its financial condition and results of operations, and as of May 9, 2026, had not recognized any potential IEEPA tariff refunds.