Companies /Consumer Cyclical

Autozone Inc

NYSE: AZO Auto Parts
$2,935.62
▼ $63.38 (−2.11%) today
Markets open · 2:00pm ET

Q1 2026 Earnings

Reported Dec 9, 2025, 6:55am ET · SEC source
$31.04
Miss −4.20%
EPS · est. $32.40
$4.6B
Miss −0.28%
Revenue · est. $4.6B
−1.0%
Trailing market
AZO vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−6%−3%0+3%Dec 9Dec 10report 6:55am ETearnings−0.1%−5.3%
−6%−3%0+3%Dec 9Dec 10earnings−0.1%−5.3%
AZO −5.3%S&P 500 −0.1%
−6%−3%0+3%Dec 9Dec 10report 6:55am ETearnings−0.1%−5.3%
−6%−3%0+3%Dec 9Dec 10earnings−0.1%−5.3%
AZO −5.3%NASDAQ −0.1%
−4%0+4%Dec 8Dec 16report 6:55am ETearnings−0.9%−5.5%
−4%0+4%Dec 8Dec 16earnings−0.9%−5.5%
AZO −5.5%S&P 500 −0.9%
−4%0+4%Dec 8Dec 16report 6:55am ETearnings−2.2%−5.5%
−4%0+4%Dec 8Dec 16earnings−2.2%−5.5%
AZO −5.5%NASDAQ −2.2%
−7.17%
Day of report
−2.16%
Next session
−2.27%
One week
+0.75%
30 days

S&P 500 over the same 30 days: +1.77%.

Did AZO Beat Earnings? Q1 2026 Results

AutoZone delivered a mixed fiscal first quarter for 2026, posting solid top-line growth but falling short on both earnings and revenue as margin pressures weighed heavily on the bottom line. Net sales rose 8.2% year-over-year to $4.63 billion, narrowly missing the $4.64 billion consensus estimate by 0.28%, while diluted EPS of $31.04 came in 4.20% below the $32.40 analyst forecast, down from $32.52 in the year-ago quarter. The primary culprit was a 212 basis point non-cash LIFO charge that drove gross margin down 203 basis points to 51.0%, compounding the effect of SG&A deleverage as the company ramped spending on stores and supply chain infrastructure. Domestic commercial sales were a genuine bright spot, climbing 14.5% to $1.29 billion, and same-store sales rose 4.7% on a constant currency basis. A director purchase of AutoZone shares following the report signaled some insider confidence despite the headline misses. With 53 net new stores opened in the quarter and aggressive expansion planned through the remainder of fiscal 2026, CEO Phil Daniele is betting that market share gains will ultimately vindicate the near-term margin sacrifice.

Key Takeaways
  • Domestic same-store sales growth of 4.8%
  • International same-store sales growth of 11.2% (3.7% constant currency)
  • 53 net new store openings globally during the quarter
  • Domestic commercial sales growth of 14.5% year-over-year
  • Gross margin contracted 203 basis points driven by 212 basis point non-cash LIFO impact
  • SG&A deleverage to 34.0% from 33.3% due to growth initiative investments
  • Inventory increased 13.9% over prior year driven by growth initiatives and inflation

“I would like to thank our AutoZoners for delivering another quarter of strong sales growth. Our Domestic and International businesses performed well throughout the quarter as we continue to execute on our growth initiatives. We were especially pleased to open 53 net new stores globally in the quarter and we plan to aggressively open stores over the remainder of the fiscal year as we continue our focus on gaining market share. As we invest in growing our business, we will remain committed to our disciplined approach of increasing earnings and cash flow to drive shareholder value.”

AutoZone CEO, on the earnings call

Forward Guidance & Outlook

AutoZone plans to aggressively open stores over the remainder of fiscal 2026 as it continues its focus on gaining market share. The company will remain committed to its disciplined approach of increasing earnings and cash flow to drive shareholder value while investing in growth initiatives.

AZO YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$2.0B$4.0B$4.3B$4.6BRevenue$2.3B$2.4BGross Profit$841.2M$784.2MOperating Income$564.9M$530.8MNet Income
$0$2.0B$4.0BRevenueGross ProfitOperating IncomeNet Income

AZO Revenue by Segment

Auto Parts
Domestic Commercial
Domestic Commercial Sales$1.3B+14.5%
All Other including ALLDATA

Figures from SEC filings and company reports. Not investment advice.