MEMPHIS — AutoZone reported fiscal fourth-quarter results for the 16-week period ended August 29, 2026, posting net sales of $6.6 billion and diluted earnings per share of $56.05. The automotive retailer's profit per share exceeded consensus analyst estimates while its revenue fell short of expectations.

Net sales rose 5.6% year-over-year but missed the range of approximately $6.69 billion to $6.71 billion projected by analysts. Diluted earnings per share surpassed the consensus estimate of approximately $54.30 to $54.54. Net income for the quarter reached $931.6 million, while operating profit increased 10.1% to $1.3 billion.

Gross profit as a percentage of sales was 53.3%, representing an increase of 182 basis points from the prior year. The company stated that this gross margin improvement included a 145-basis-point benefit from tariff refunds and a 105-basis-point net non-cash LIFO benefit. AutoZone repurchased $697.5 million of stock during the fourth quarter.

"We continued to gain market share in a challenging macro environment." President and Chief Executive Officer Phil Daniele said. He added that domestic comparable sales showed momentum toward the end of the period. "Domestic comparable sales averaged approximately 1.4% growth during the first three months of the 16-week period before accelerating to 2.1% in August." Daniele said.

Total company same-store sales increased 1.5% on a constant-currency basis in the fourth quarter. Domestic comparable sales rose 1.6%, driven by an 8.6% increase in domestic commercial sales. Domestic do-it-yourself sales declined 0.6% during the same period. International comparable sales increased 1.3% on a constant-currency basis.

Timeline

On August 29, 2026, AutoZone reported fourth-quarter net sales of $6.6 billion, a 5.6% increase year-over-year. The company also reported fourth-quarter operating profit of $1.3 billion, a 10.1% increase, along with fourth-quarter net income of $931.6 million. Diluted earnings per share for the quarter were $56.05.

Gross profit as a percentage of sales was 53.3% in the fourth quarter, an increase of 182 basis points from the prior year. AutoZone opened 175 new stores in the fourth quarter, including 16 new Mega Hub stores in the U.S. As of August 29, 2026, AutoZone operated 8,031 stores globally, including 6,863 in the U.S. 1,001 in Mexico, and 167 in Brazil.

What's New

Additional reporting indicates that AutoZone plans $1.65 billion in capital expenditures for fiscal 2027. Analyst data shows AutoZone's fourth-quarter diluted earnings per share exceeded the consensus analyst estimate of approximately $54.30 to $54.54.

Conversely, AutoZone's fourth-quarter net sales of $6.6 billion fell short of analyst expectations of approximately $6.69 billion to $6.71 billion. Full fiscal year 2026 net sales were $20.34 billion, and full fiscal year 2026 net income was $2.57 billion, or $152.55 per share. The company plans to open more than 40 Mega Hub stores in fiscal 2027.

Why It Matters

AutoZone's financial performance reflects a divergence between profitability metrics and top-line revenue expectations. While the company beat earnings estimates, it missed sales forecasts, indicating potential pressure on consumer spending or competitive dynamics in the aftermarket auto parts sector. The gross margin expansion, aided by tariff refunds and accounting benefits, helped sustain profit levels despite the revenue miss.

Looking ahead, AutoZone has outlined plans to open approximately 400 global stores in fiscal 2027, with more than 40 of those being Mega Hub locations. The company expects domestic same-store sales in fiscal 2027 to range from flat to low-single-digit growth. AutoZone ended the fiscal year with $1.6 billion remaining under its current share repurchase authorization. Shares closed 3.26% higher on September 22, 2026, following the report, though they have declined approximately 30% to 32% over the 12 months preceding that date and 17% since the beginning of 2026.