Autozone Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.60%.
Did AZO Beat Earnings? Q2 2026 Results
AutoZone delivered a mixed fiscal second-quarter print for the 12 weeks ended February 14, 2026, beating on earnings while falling slightly short on the top line. Diluted EPS of $27.63 edged past the $27.29 consensus estimate by 1.24%, though net sales of $4.27 billion trailed expectations by 0.77%, even as revenue climbed 8.2% year over year. The headline tension was margin pressure: gross margin contracted 137 basis points to 52.5%, driven almost entirely by a non-cash LIFO charge that weighed on operating profit, which slipped 1.2% to $698.46 million. Domestic commercial sales emerged as a relative bright spot, rising 9.8% to $1.15 billion, while CEO Phil Daniele noted that winter storms in late January and early February disrupted operations and tempered results. AutoZone opened 64 net new stores in the quarter, bringing its total count to 7,774, and reiterated its full-year target of approximately 350 to 360 openings, underscoring confidence in its long-term expansion even as recent stock performance has lagged broader market trends.
- Total company constant-currency same-store sales increase of 3.3%
- Domestic same-store sales increase of 3.4%
- International same-store sales increase of 17.1% as reported (2.5% constant currency)
- Domestic commercial sales growth of 9.8%
- 64 net new stores opened in the quarter
- Non-cash LIFO charge of 138 basis points compressed gross margin
“I want to thank our AutoZoners across the company for delivering solid financial results this past quarter. We continue to be pleased with our strategies to grow sales. Domestically, both DIY and Commercial sales continued to perform well this past quarter in spite of winter storms causing disruptions the last week of January and the first week of February. While our international sales, in constant currency, were slightly below our expectations, we believe our market share continues to grow as we outpace our competition in both Mexico and Brazil. We were also pleased to have opened 64 net new stores globally in the quarter, in line with our expectations to open approximately 350-360 stores for the full fiscal year. As we remain focused on gaining market share across our highly fragmented industry, we remain committed to a disciplined approach of increasing earnings and cash flows to drive shareholder value.”
AutoZone CEO, on the earnings call
Forward Guidance & Outlook
AutoZone expects to open approximately 350-360 new stores for the full fiscal year 2026. The company remains focused on gaining market share across the highly fragmented automotive parts industry and is committed to a disciplined approach of increasing earnings and cash flows to drive shareholder value.
AZO YoY Financials
AZO Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.