WS Investor
22 Sep 2026, 14:45
AutoZone Stock Jumps 5.2% After Strong Q4 Earnings and Improving Sales Momentum
AutoZone shares rose 5.2% Tuesday after the auto-parts retailer reported stronger fourth-quarter earnings, higher sales and improving demand trends late in the quarter.
Fourth-quarter net sales increased 5.6% year over year to $6.6 billion. Total company same-store sales rose 2.7%, or 1.5% on a constant-currency basis, while domestic same-store sales increased 1.6%. International same-store sales jumped 10.7%, though the gain was 1.3% excluding currency effects.
Profitability also improved. Gross margin expanded to 53.3% from 51.5% a year earlier, helped by tariff refunds and a favorable LIFO impact. Operating profit rose 10.1% to $1.3 billion, while net income increased to $931.6 million from $837.0 million. Diluted EPS climbed to $56.05 from $48.71.
Management said sales strengthened during the final eight weeks of the quarter after a difficult start and expects sales growth to accelerate across the U.S., Mexico and Brazil in fiscal 2027.
For the full year, AutoZone generated $20.3 billion in sales, up 7.4%, while diluted EPS increased 5.3% to $152.55. The company also continued aggressive capital returns, repurchasing $2.0 billion of stock during the year.
The 5.2% share-price gain suggests investors focused on the stronger earnings growth, margin improvement and management’s more constructive outlook for fiscal 2027.
AutoZone shares rose 5.2% Tuesday after the auto-parts retailer reported stronger fourth-quarter earnings, higher sales and improving demand trends late in the quarter.
Fourth-quarter net sales increased 5.6% year over year to $6.6 billion. Total company same-store sales rose 2.7%, or 1.5% on a constant-currency basis, while domestic same-store sales increased 1.6%. International same-store sales jumped 10.7%, though the gain was 1.3% excluding currency effects.
Profitability also improved. Gross margin expanded to 53.3% from 51.5% a year earlier, helped by tariff refunds and a favorable LIFO impact. Operating profit rose 10.1% to $1.3 billion, while net income increased to $931.6 million from $837.0 million. Diluted EPS climbed to $56.05 from $48.71.
Management said sales strengthened during the final eight weeks of the quarter after a difficult start and expects sales growth to accelerate across the U.S., Mexico and Brazil in fiscal 2027.
For the full year, AutoZone generated $20.3 billion in sales, up 7.4%, while diluted EPS increased 5.3% to $152.55. The company also continued aggressive capital returns, repurchasing $2.0 billion of stock during the year.
The 5.2% share-price gain suggests investors focused on the stronger earnings growth, margin improvement and management’s more constructive outlook for fiscal 2027.
