AutoZone Q4 Adjusted Earnings Beat Estimates as Revenue Falls Short of Forecasts

AutoZone (NYSE:AZO) reported fourth-quarter adjusted earnings above analyst expectations, although revenue missed forecasts, sending its shares 2% higher in premarket trading.

The automotive parts retailer posted adjusted earnings per share of $56.05 for the quarter ended 29 August 2026, exceeding the analyst consensus of $54.30.

Net sales increased 5.6% to $6.6 billion from $6.2 billion a year earlier but fell short of the $6.71 billion expected by analysts.

Same-Store Sales Increase as Trading Improves

Domestic same-store sales rose 1.6% on a constant-currency basis during the quarter, while company-wide same-store sales increased 1.5%.

AutoZone reported an improvement in sales during the latter part of the reporting period, following a challenging start to the quarter.

Phil Daniele, President and Chief Executive Officer, commented:

“In spite of a difficult selling environment the first eight weeks of our quarter, we remained committed to executing on our strategies to grow both our domestic and international businesses.”

He added:

“Over the last eight weeks of the quarter our sales results strengthened, and we feel we are well positioned for sales growth in fiscal 2027.”

Gross Margin Expands to 53.3%

AutoZone’s gross margin increased by 182 basis points to 53.3%.

The improvement included a 145-basis-point benefit from tariff refunds and a 105-basis-point non-cash impact from last-in, first-out (LIFO) inventory accounting.

These benefits were partially offset by a higher proportion of commercial sales in the company’s revenue mix.

Operating expenses increased to 33.4% of sales, compared with 32.4% in the corresponding quarter last year.

The company attributed the increase in its operating expense ratio primarily to spending on growth initiatives.

Despite the higher expense ratio, net income rose to $931.6 million from $837.0 million in the prior-year period.

Annual Revenue Rises 7.4% as Store Network Expands

For the full fiscal year, AutoZone reported sales of $20.3 billion, representing a 7.4% increase from the previous year.

The company opened 374 new stores during the year as it continued expanding its domestic and international operations.

The fourth-quarter results reflected higher sales, improved gross margins and increased net income, although revenue remained below market expectations.

AutoZone stock price