01—Abstract
Summary
Summary of the 10-Q filed June 12, 2026. Cited figures are marked; the original filing is the authoritative source.
AutoZone Inc. reported a solid performance for the third quarter of fiscal year 2026, with net sales increasing by 8.4% to $4.8 billiona 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 $38.07b. 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 billionc, 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.
02—Key points
Key Highlights
- Net sales increased 8.4% to $4.8 billion for the twelve weeks ended May 9, 2026, compared to the prior year.
- Diluted earnings per share (EPS) rose 7.7% to $38.07 for the twelve weeks ended May 9, 2026.
- Total company same store sales increased by 3.9% on a constant currency basis for the twelve weeks ended May 9, 2026.
- Gross margin percentage slightly decreased to 52.2% from 52.7% due to LIFO impacts.
- Operating profit increased 6.6% to $923.8 million for the twelve weeks ended May 9, 2026.
- Capital expenditures increased to $997.5 million for the thirty-six weeks ended May 9, 2026, primarily for growth initiatives.
- The company continues its share repurchase program, with $0.8 billion remaining authorization as of May 9, 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, AutoZone Inc kept $0.13.
- Revenue$4.84B100.0%
- Cost of revenue−$2.32B47.8%
- Gross profit$2.52B52.2%
- Operating costs−$1.60B33.1%
- Operating income$923.8M19.1%
- Interest, other & tax−$282.3M5.8%
- Net income$641.5M13.3%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed June 12, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $4.84B$4.46B | +8.4% |
| Cost of Revenue | $2.32B$2.11B | +9.7% |
| Gross Profit | $2.52B$2.35B | +7.3% |
| SG&A Expenses | $1.60B$1.49B | +7.6% |
| Operating Income | $923.76M$866.17M | +6.6% |
| Net Income | $641.49M$608.44M | +5.4% |
| EPS (Basic) | $38.95$36.33 | +7.2% |
| EPS (Diluted) | $38.07$35.36 | +7.7% |
| Shares Outstanding (Basic) | 16.47M16.75M | −1.7% |
| Shares Outstanding (Diluted) | 16.85M17.21M | −2.1% |
05—Questions
Frequently Asked Questions
What were the key drivers of AutoZone's sales growth in the third quarter?
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%.
How did the company's profitability change compared to the prior year?
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.
What is the company's outlook on liquidity and capital allocation?
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.
What impact do tariffs have on AutoZone's financial results?
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.
06—Continue