AutoZone reported $20.3 billion in revenue for fiscal 2026, representing a 7.4% increase year over year, as the automotive replacement parts retailer expanded its domestic and international operations. Fourth-quarter revenue increased 5.6% to $6.6 billion, while diluted earnings per share rose to $56.05 from $48.71. The company opened 175 stores during the quarter, bringing its global store count to 8,031 locations.
For the 16-week fourth quarter ended August 29, 2026, AutoZone reported $931.6 million in net income, compared with $837 million during the same period in fiscal 2025.
Quarterly operating profit increased 10.1% to $1.3 billion.
Gross margin improved by 182 basis points to 53.3%, benefiting from tariff refunds and noncash inventory accounting adjustments.
Tariff refunds contributed approximately 145 basis points to quarterly gross margin, while net noncash last-in, first-out inventory accounting adjustments provided an additional 105-basis-point benefit.
These gains were partially offset by a higher proportion of commercial sales.
Operating expenses increased to 33.4% of revenue, compared with 32.4% during the previous year’s fourth quarter, reflecting continued investment in growth initiatives.
Total company same-store sales increased 2.7% on a reported basis and 1.5% at constant exchange rates.
Domestic same-store sales increased 1.6%, while international same-store sales grew 10.7% as reported and 1.3% on a constant-currency basis.
Management said sales strengthened during the second half of the quarter after a difficult selling environment during the first eight weeks.
AutoZone continued investing in its commercial business, which supplies replacement parts and accessories to professional repair shops, dealerships, service stations, fleet operators, and other business customers.
The company also expanded its network of larger distribution-oriented stores known as Mega Hubs, opening 16 new U.S. Mega Hubs during the fourth quarter.
Its overall fourth-quarter expansion included 97 new stores in the United States, 68 in Mexico, and 10 in Brazil.
For the full fiscal year, AutoZone opened 374 stores. At year-end, its network comprised 6,863 stores in the United States, 1,001 in Mexico, and 167 in Brazil.
Fiscal 2026 operating profit increased 3.1% to $3.7 billion, while annual net income rose 3% to $2.6 billion.
Full-year diluted earnings per share increased 5.3% to $152.55, compared with $144.87 in fiscal 2025.
AutoZone also continued returning capital to shareholders through its share repurchase program.
During the fourth quarter, the company repurchased approximately 223,000 shares for $697.5 million. Its full-year repurchases totaled approximately 579,000 shares for $2 billion.
At the end of fiscal 2026, AutoZone had $1.6 billion remaining under its existing share repurchase authorization.
Inventory increased approximately 10.1% year over year, primarily reflecting investments supporting the company’s store expansion and product availability initiatives.
AutoZone plans to continue expanding its store network, improving delivery speed, and strengthening its inventory offering for both do-it-yourself and professional customers during fiscal 2027.
KEY QUOTES:
“I want to thank our entire organization for delivering another quarter of sales and earnings growth. In spite of a difficult selling environment the first eight weeks of our quarter, we remained committed to executing on our strategies to grow both our domestic and international businesses. Over the last eight weeks of the quarter our sales results strengthened, and we feel we are well positioned for sales growth in fiscal 2027. We opened 175 new stores this past quarter, which included 16 new Mega Hub stores in the U.S.”
Phil Daniele, President and CEO of AutoZone
