AutoZone (NYSE:AZO) Posts Earnings Results

AutoZone (NYSE:AZO) posted its quarterly earnings data on Tuesday. The company reported $27.63 earnings per share (EPS) for the quarter, topping the consensus estimate of $27.59 by $0.04, FiscalAI reports. The business had revenue of $4.27 billion for the quarter, compared to analysts’ expectations of $4.31 billion. AutoZone had a negative return on equity of 65.38% and a net margin of 12.78%.The business’s revenue was up 8.2% on a year-over-year basis. During the same quarter last year, the firm earned $28.29 earnings per share.

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 NYSE AZO opened at $3,636.15 on Wednesday. AutoZone has a 1-year low of $3,210.72 and a 1-year high of $4,388.11. The company has a market capitalization of $60.25 billion, a price-to-earnings ratio of 25.36, a PEG ratio of 1.85 and a beta of 0.41. The business has a 50-day moving average of $3,607.18 and a 200-day moving average of $3,825.54.

Insider Buying and Selling at AutoZone

In related news, Director Earl G. Graves, Jr. sold 250 shares of the business’s stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $3,295.00, for a total transaction of $823,750.00. Following the transaction, the director directly owned 4,887 shares of the company’s stock, valued at approximately $16,102,665. The trade was a 4.87% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Michael A. George acquired 145 shares of the stock in a transaction on Monday, December 22nd. The stock was purchased at an average cost of $3,398.13 per share, with a total value of $492,728.85. Following the transaction, the director directly owned 566 shares of the company’s stock, valued at $1,923,341.58. This represents a 34.44% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last quarter, insiders bought 347 shares of company stock worth $1,179,256 and sold 9,447 shares worth $34,179,923. Corporate insiders own 2.60% of the company’s stock.

Institutional Investors Weigh In On AutoZone

Several hedge funds and other institutional investors have recently added to or reduced their stakes in AZO. Sivia Capital Partners LLC purchased a new position in AutoZone in the second quarter valued at about $356,000. Brighton Jones LLC increased its holdings in AutoZone by 14.4% during the 4th quarter. Brighton Jones LLC now owns 111 shares of the company’s stock worth $356,000 after purchasing an additional 14 shares during the last quarter. Man Group plc raised its position in shares of AutoZone by 428.1% in the 2nd quarter. Man Group plc now owns 19,604 shares of the company’s stock valued at $72,775,000 after purchasing an additional 15,892 shares in the last quarter. Rafferty Asset Management LLC raised its position in shares of AutoZone by 21.2% in the 2nd quarter. Rafferty Asset Management LLC now owns 1,580 shares of the company’s stock valued at $5,865,000 after purchasing an additional 276 shares in the last quarter. Finally, Sompo Asset Management Co. Ltd. boosted its stake in shares of AutoZone by 33.3% during the 2nd quarter. Sompo Asset Management Co. Ltd. now owns 80 shares of the company’s stock valued at $297,000 after buying an additional 20 shares during the last quarter. Hedge funds and other institutional investors own 92.74% of the company’s stock.

AutoZone News Roundup

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone reported fiscal Q2 EPS of $27.63 and same‑store sales growth (total company +3.3%, domestic +3.4%), confirming underlying demand and beating EPS expectations by a narrow margin. AutoZone 2nd Quarter Results
• Neutral Sentiment: Management held an earnings call; transcript and highlights provide details on inventory, customer mix, and cost dynamics that investors will parse for guidance and cadence going forward. Earnings Call Transcript
• Neutral Sentiment: Analyst summaries and call recaps note strong sales growth but emphasize rising cost pressures and margin conversations — useful for assessing outlook rather than an immediate directional catalyst. Q2 2026 Earnings Call Highlights
• Negative Sentiment: Net sales of ~$4.27B missed the FactSet/Street consensus (~$4.31B), creating concern that same‑store growth and top‑line momentum were weaker than modeled — a primary driver of the stock decline. Reuters: Profit Falls After Headwinds
• Negative Sentiment: Margin compression cited by management (inflationary headwinds, gross‑margin pressure) and coverage pieces calling out “margins crack” amplified the selloff despite the EPS beat. Margins Crack at AutoZone
• Negative Sentiment: External factors and one‑offs cited — winter storms that hurt in‑store traffic and broader cost pressure expectations — plus at least one price‑target cut (DA Davidson lowered its PT while keeping a buy rating) weighed on sentiment. WSJ: Winter Storms Hurt Sales DA Davidson PT Cut

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Oppenheimer reduced their target price on AutoZone from $4,600.00 to $4,150.00 and set an “outperform” rating on the stock in a research report on Friday, January 9th. TD Cowen restated a “buy” rating on shares of AutoZone in a report on Monday, February 23rd. Evercore upped their price target on shares of AutoZone from $4,100.00 to $4,125.00 and gave the stock an “outperform” rating in a research report on Friday, February 27th. Raymond James Financial cut their price target on shares of AutoZone from $4,800.00 to $4,600.00 and set a “strong-buy” rating on the stock in a research note on Wednesday, December 10th. Finally, Jefferies Financial Group reissued a “buy” rating and set a $4,400.00 price objective on shares of AutoZone in a research note on Wednesday, December 10th. One analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $4,274.17.

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.