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AutoZone reported Q4 FY2026 revenue of $6.6 billion, up 5.64% from $6.2 billion a year earlier. The company’s revenue was 1.38% below the consensus of $6.7 billion.
The company reported diluted EPS of $56.05, up 15.1% from $48.71 in Q4 FY2025. Adjusted EPS, as the consensus counts it, was $56.05 versus consensus adjusted EPS of $54.54, or 2.77% above the consensus.
AutoZone reported domestic commercial revenue of $1.9 billion in the quarter, while domestic do-it-yourself revenue declined 0.60%. The company said gross margin was 53.3%, compared with 51.5% a year earlier, and operating margin was 20.0%, compared with 19.2%. AutoZone also reported operating income of $1.3 billion and net income of $931.6 million for Q4 FY2026.
The company opened 175 stores during the quarter and had 8,031 stores as of August 29, 2026. AutoZone’s most recently reported free cash flow was $456.5 million in Q3 FY2026, compared with $423.1 million a year earlier.
| Q4 FY2026 | Q4 FY2025 | Change | |
|---|---|---|---|
| Revenue | $6.6 billion | $6.2 billion | 5.64% |
| Diluted EPS | $56.05 | $48.71 | 15.1% |
| Gross margin | 53.3% | 51.5% | 1.8 percentage points |
| Operating margin | 20.0% | 19.2% | 0.8 percentage points |
| Free cash flow | $456.5 million | $423.1 million | 7.88% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $56.05 | $54.54 | Beat by 2.77% |
| Revenue | $6.6 billion | $6.7 billion | Missed by 1.38% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
On AutoZone’s Q3 FY2026 earnings call, Chief Executive Officer Philip Daniele said domestic same-store sales grew 4.1%, with domestic DIY sales up 2.2% and domestic commercial sales up 10.4%. He said cooler weather affected heat-related categories late in the quarter, including air conditioning, starting and charging, and said AutoZone expected normal or hotter summer conditions.
Daniele said commercial sales growth was supported by inventory availability at satellite stores, expanded hub and mega hub coverage, the Duralast brand, and initiatives to improve delivery speed and service. He said AutoZone expected to add about 15 mega hubs in Q4 FY2026 and was targeting approximately 300 mega hubs at full buildout. In the Q&A, he said the company viewed its execution, assortments, hubs and mega hubs as opportunities to serve both DIY and commercial customers.
Chief Financial Officer Jamere Jackson said AutoZone’s Q3 gross margin was 52.2%, with a $20 million noncash LIFO charge creating an unfavorable comparison with the prior year. He said merchandise margins, shrink and supply-chain productivity contributed to margin improvements, while the faster-growing commercial business created a mix effect. When analysts asked about fourth-quarter margin performance, Jackson said AutoZone expected similar dynamics and would work to offset the commercial mix effect through other margin improvements.
Jackson said AutoZone expected the operating environment to remain inflationary and that it was managing pricing with suppliers and customers. Daniele said Q4 average-ticket growth was expected in the mid-4% range as AutoZone began to lap prior-year inflation. Jackson did not quantify a total company sales outlook when asked about fiscal 2027, saying the company did not guide in that manner.
Daniele said AutoZone was investing nearly $1.6 billion in capital expenditures during FY2026 and expected a similar investment the following year, primarily in accelerated store growth, hubs and mega hubs. Jackson said the company expected to manage SG&A in line with sales growth while continuing to invest in stores, service and productivity initiatives.
Guidance
Management’s guidance for the latest quarter and current fiscal year is not available in the provided materials. Accordingly, AutoZone did not provide guidance changes or withdrawn guidance that can be reported for this page. The Q3 FY2026 call included operational expectations for Q4 FY2026, but those comments were not current guidance for the latest reported quarter.