AutoZone (NYSE:AZO) Issues Earnings Results

AutoZone (NYSE:AZO) issued its quarterly earnings data on Tuesday. The company reported $27.63 earnings per share for the quarter, topping analysts’ consensus estimates of $27.59 by $0.04, FiscalAI reports. AutoZone had a net margin of 12.47% and a negative return on equity of 72.31%. The business had revenue of $4.27 billion during the quarter, compared to the consensus estimate of $4.31 billion. During the same quarter in the prior year, the firm posted $28.29 earnings per share. The company’s revenue was up 8.2% compared to the same quarter last year.

Here are the key takeaways from AutoZone’s conference call:

• Total sales grew +8.1% with constant-currency same-store sales up +3.3% (domestic +3.4%), driven by DIY +1.5% and commercial +9.8%, though late-quarter winter storms temporarily pressured results.
• A non‑cash $59M LIFO charge cut Q2 EPS (-2.3% reported); management expects roughly $60M of LIFO charges in each remaining quarter (≈$277M for FY26), which will materially depress reported margins and EPS near term.
• AutoZone is accelerating growth investments — ~$1.6B CapEx this year, ~350–360 net store openings expected in FY26, expansion of Hubs/Mega Hubs (target ~300 Mega Hubs) and new DCs — management says new stores are outperforming models.
• The commercial business is gaining share (now ~32% of domestic parts sales), benefiting from improved inventory availability, faster delivery, Duralast strength and Mega Hub coverage, supporting medium-term sales and EBIT upside.
• Currency was a tailwind (peso strength gave ~$74M revenue and ~$0.95 EPS benefit in Q2; Q3 spot rates could add ≈$75M revenue / $0.85 EPS), liquidity remains strong with $311M buybacks in Q2 and $1.4B remaining, but Q2 free cash flow fell to $15M (YTD $645M) due to CapEx and payables timing.

AutoZone Price Performance

Shares of AutoZone stock opened at $3,711.77 on Thursday. The stock’s 50 day simple moving average is $3,612.21 and its 200-day simple moving average is $3,824.75. The stock has a market cap of $61.50 billion, a P/E ratio of 26.00, a P/E/G ratio of 1.74 and a beta of 0.41. AutoZone has a 1-year low of $3,210.72 and a 1-year high of $4,388.11.

Key AutoZone News

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: EPS beat and revenue growth: AutoZone topped quarterly EPS estimates and delivered +8% sales year-over-year, with commercial sales and store openings helping offset weaknesses. Earnings Beat
• Positive Sentiment: Growth blueprint: Management reiterated an aggressive store-growth plan (targeting ~350–360 new stores in 2026), which supports longer-term revenue and commercial expansion. Store Growth Plan
• Positive Sentiment: Analyst upside: Multiple major firms raised targets or reiterated buys (Goldman Sachs, Citigroup, Morgan Stanley, Barclays among others), providing visible broker support that likely buoyed the stock. Analyst Raises
• Neutral Sentiment: Mixed analyst actions: While several banks lifted targets, others trimmed theirs (BMO, DA Davidson, Roth, Truist made adjustments), leaving a split analyst picture and some debate over valuation vs. execution. Price Target Moves
• Negative Sentiment: Top-line weakness from weather and comps: Management said winter storms and weaker comparable-store sales (including softness in Mexico) drove the revenue shortfall relative to expectations. That miss weighed on near-term sentiment. Winter Weather Impact
• Negative Sentiment: Margin pressure and cost headwinds: Inflationary input costs, higher production expenses, LIFO accounting effects and accelerated SG&A investment compressed margins and prompted analyst scrutiny of profit sustainability. Margin Pressure

Insider Activity

In other AutoZone news, VP Richard Craig Smith sold 5,910 shares of the business’s stock in a transaction on Friday, January 23rd. The stock was sold at an average price of $3,700.00, for a total transaction of $21,867,000.00. Following the transaction, the vice president owned 2,627 shares of the company’s stock, valued at approximately $9,719,900. The trade was a 69.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director George R. Mrkonic, Jr. sold 97 shares of the company’s stock in a transaction on Friday, January 2nd. The shares were sold at an average price of $3,341.99, for a total value of $324,173.03. Following the completion of the sale, the director owned 3,564 shares of the company’s stock, valued at approximately $11,910,852.36. The trade was a 2.65% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have bought 347 shares of company stock valued at $1,179,256 and have sold 9,447 shares valued at $34,179,923. 2.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On AutoZone

Hedge funds and other institutional investors have recently bought and sold shares of the company. Morgan Stanley raised its stake in AutoZone by 17.8% during the fourth quarter. Morgan Stanley now owns 492,794 shares of the company’s stock worth $1,671,323,000 after purchasing an additional 74,555 shares during the period. AQR Capital Management LLC increased its holdings in shares of AutoZone by 80.8% during the 3rd quarter. AQR Capital Management LLC now owns 101,185 shares of the company’s stock worth $432,059,000 after buying an additional 45,212 shares during the last quarter. Jacobs Levy Equity Management Inc. raised its position in shares of AutoZone by 1,650.9% during the 4th quarter. Jacobs Levy Equity Management Inc. now owns 38,099 shares of the company’s stock valued at $129,213,000 after buying an additional 35,923 shares during the period. Alyeska Investment Group L.P. purchased a new stake in shares of AutoZone during the 3rd quarter valued at approximately $82,214,000. Finally, Amundi lifted its holdings in AutoZone by 26.6% in the fourth quarter. Amundi now owns 90,718 shares of the company’s stock valued at $307,670,000 after acquiring an additional 19,075 shares during the last quarter. 92.74% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

AZO has been the subject of a number of analyst reports. Raymond James Financial reduced their price target on AutoZone from $4,800.00 to $4,600.00 and set a “strong-buy” rating for the company in a report on Wednesday, December 10th. Jefferies Financial Group restated a “buy” rating and issued a $4,400.00 price objective on shares of AutoZone in a research report on Wednesday, December 10th. TD Cowen reaffirmed a “buy” rating on shares of AutoZone in a research note on Monday, February 23rd. Evercore lifted their price target on shares of AutoZone from $4,100.00 to $4,125.00 and gave the company an “outperform” rating in a research note on Friday, February 27th. Finally, Truist Financial cut their price target on shares of AutoZone from $4,076.00 to $4,045.00 and set a “buy” rating for the company in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $4,300.70.

AutoZone Company Profile

AutoZone, Inc (NYSE: AZO) is a retailer and distributor of automotive replacement parts and accessories. Headquartered in Memphis, Tennessee, the company supplies a wide range of aftermarket components, maintenance items and accessories for passenger cars, light trucks and commercial vehicles. Its product assortment includes engine parts, electrical components, batteries, brakes, filters, fluids and interior and exterior accessories, supported by inventory management and logistics systems to serve retail customers and professional service providers.

AutoZone serves both do‑it‑yourself (DIY) consumers and commercial customers such as independent repair shops and service centers.