AutoZone Q4 2026: Earnings Beat Masked by Tariff Refund Boost
As seen on the 24/7 Wall St. homepage on September 22, 2026.
AutoZone's earnings beat leaned on 145 basis points of tariff refunds, while sales missed expectations after a soft first eight weeks. Management expects sales to accelerate in all three countries in fiscal 2027, with domestic commercial already up 8.6%.
Continue ReadingShow less
AutoZone posted Q4 fiscal 2026 GAAP diluted EPS of $56.05, topping the $54.14 consensus estimate, though tariff refunds and a non-cash LIFO benefit drove much of the gross margin expansion behind it.
Net sales of $6.59 billion rose 5.6% year-over-year while missing expectations of $6.71 billion, with management pointing to a difficult selling environment in the first eight weeks of the quarter that improved materially in the back half.
The bright spot was the domestic commercial segment, where sales climbed 8.6% to $1.91 billion, alongside gains in domestic and international same-store sales and continued store and Mega Hub openings.
CEO Phil Daniele said the company expects sales in each of its three markets, the U.S., Mexico, and Brazil, to accelerate in fiscal 2027, a forecast supported by the visible improvement in sales trends as Q4 progressed, and AutoZone repurchased $697.5 million of stock in the quarter.
The full fiscal year produced GAAP EPS of $152.55, beating the consensus estimate, while revenue of $20.34 billion missed expectations, consistent with the quarterly pattern of strong profit delivery alongside softer top-line performance.
Mentioned: AZO