$AZO · AUTOZONE INC
AutoZone reported Q4 FY2026 (16 weeks ended August 29, 2026) results: net sales of $6.6B (+5.6% YoY), diluted EPS of $56.05 vs $48.71, and net income of $931.6M. Gross margin expanded 182 bps to 53.3%, aided by a 145 bps tariff refund benefit. Full-year FY2026: $20.3B in sales (+7.4%), EPS of $152.55, and $2.0B in share repurchases.
- Q4 diluted EPS of $56.05 vs $48.71 prior year, a 15.1% increase.
- Q4 gross margin expanded 182 bps to 53.3%, driven by a 145 bps tariff refund benefit.
- Full-year net sales reached $20.3B, up 7.4% YoY; net income rose 3.0% to $2.6B.
- Company repurchased $2.0B in shares during FY2026 at an average price of $3,496 per share.
- Total store count reached 8,031 after opening 374 net new stores in FY2026.
Extended-hours trading shows AZO at $2,835.00, up +1.13% vs the regular close of $2,803.25, indicating a positive initial reaction to the Q4 beat and margin expansion. Regular session had closed down 1.82% before the release.
AutoZone delivered a 15% EPS beat with margin expansion and $2B in buybacks, but the tariff refund tailwind raises questions about core earnings quality heading into FY2027.
AutoZone's 3.3% domestic same-store sales for FY2026 and aggressive store expansion (374 new stores) reinforce its share-gain narrative in auto parts retail, outpacing peers in a mature U.S. market while building international scale in Mexico and Brazil.
Gross margin benefited from a 145 bps tariff refund — a non-recurring tailwind that may not repeat. CEO noted a "difficult selling environment" in the first eight weeks of the quarter, and operating expenses deleveraged 100 bps due to growth initiatives.
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