AutoZone (AZO) Q4 2026 earnings summary

Executive summary

• Net sales increased 5.6% in Q4 2026 to $6.6 billion, with annual sales up 7.4% to $20.3 billion.

• Earnings per share rose 15.1% in Q4 and 5.3% for the year, aided by a $96 million tariff refund and offset by a $15 million LIFO charge.

• 374 new stores opened in FY 2026, bringing the total to over 8,000 globally.

• Domestic commercial sales grew 8.6% in Q4 and 10.6% for the year, while DIY sales were pressured by lower traffic and inflation.

• International expansion continued, with 1,001 stores in Mexico and 167 in Brazil at year-end.

Financial highlights

• Q4 net sales: $6.6 billion (+5.6% YoY); full-year net sales: $20.3 billion (+7.4% YoY).

• Q4 EBIT up 10.1%; adjusted EBIT up 4.4% excluding LIFO charges.

• Q4 net income: $932 million (+11.3% YoY); full-year net income: $2.6 billion (+3.0% YoY).

• Q4 gross margin improved by 182 bps to 53.3%; annual gross margin: 52.3%.

• Free cash flow for Q4: $684 million; FY 2026: $1.8 billion; cash flow from operations for the year: $3.3 billion.

Outlook and guidance

• FY 2027 domestic same-store sales expected to be flat to up low single digits, with ~4% ticket growth.

• Domestic commercial sales projected to grow high single to low double digits.

• International comps expected to be low to mid-single digits on a constant currency basis.

• Planning to open approximately 400 new stores in FY 2027.

• Focus remains on accelerating growth in commercial and DIY, international expansion, and leveraging technology.