AutoZone Posts Strong Earnings with Improved Margins and Store Expansion
On September 22, AutoZone (NYSE:AZO) reported strong fourth-quarter results for the period ending August 29, 2026. The company exceeded expectations with a year-over-year net sales increase of 5.6% to $6.6 billion and an operating profit rise of 10.1% to $1.3 billion. Net income reached $931.6 million compared to $837 million in the prior year, while diluted earnings per share rose from $48.71 to $56.05. Gross margin improved significantly by 182 basis points to 53.3%, driven partly by tariff refunds and a non-cash LIFO benefit. AutoZone also expanded its store network during the quarter, opening 175 new locations including 16 Mega Hub stores in the U.S., bringing total global store count to 8,031. Despite strong earnings performance, AZO's stock remains down nearly 30% over the past year. Analysts remain largely positive on the stock with a median price target implying more than 35% upside from current levels.
Tickers: $AZO
Topics: earnings profit growth retail store expansion