Autozone Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.29%.
Did AZO Beat Earnings? Q4 2025 Results
AutoZone delivered a mixed fiscal fourth quarter, missing earnings expectations despite underlying sales momentum that was partially obscured by a calendar quirk. Diluted EPS came in at $48.71, falling 3.88% short of the $50.68 consensus estimate, while revenue of $6.24 billion essentially matched forecasts but rose only 0.6% year-over-year, a figure that flatters the comparison given Q4 2024 included an extra week. The single biggest drag on the bottom line was an $80 million non-cash LIFO charge, which alone compressed gross margin by 128 basis points to 51.5% and had no equivalent in the prior-year period. Strip out that calendar effect, and adjusted 16-week sales grew 6.9%, with domestic same-store sales up 4.8% and international comps rising 7.2% in constant currency. Shares pulled back on the headline miss, though analyst sentiment remains broadly constructive. Looking ahead, management plans aggressive store expansion in fiscal 2026, having already opened a record 304 net new stores this year, signaling continued confidence in long-term market share gains.
- Total company same-store sales increased 5.1% on a constant currency basis (4.5% reported)
- Domestic same-store sales increased 4.8%
- International same-store sales grew 7.2% on a constant currency basis
- Domestic commercial sales grew 6.0% to $1.76 billion with average sales per program per week up 9.0%
- Both DIY and Commercial sales improved sequentially throughout the quarter
- Higher merchandise margins partially offset LIFO charge impact on gross margin
“I would like to thank our entire organization for delivering another strong quarter of sales growth. We continue to be pleased with the results of our strategies to grow both our domestic and international DIY and Commercial sales. Domestically, both DIY and Commercial sales improved sequentially throughout the quarter, and we are pleased with our momentum heading into our new fiscal year. Our international business also continued to deliver strong results, growing same store sales 7.2% on a constant currency basis. We were especially pleased to have opened 141 net new stores globally in the quarter and 304 net new stores for the year. We expect to aggressively open stores in the new year as we continue to focus on growing our market share over time. As we continue to invest in our business, we expect that our disciplined approach of increasing earnings and cash flow will deliver strong shareholder value.”
AutoZone CEO, on the earnings call
Forward Guidance & Outlook
AutoZone expects to aggressively open stores in fiscal 2026 as it continues to focus on growing market share over time. Management expects its disciplined approach of increasing earnings and cash flow will deliver strong shareholder value as it continues to invest in the business.
AZO YoY Financials
AZO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.