The stock may react negatively to declining earnings and margin pressure despite solid top-line growth and store expansion. Investors should monitor whether gross margin recovers in Q3 and whether LIFO charges reverse with inventory cost trends.
Price Chart
Executive Summary
AutoZone reported Q2 fiscal 2026 net sales of $4.3 billion, up 8.1% year-over-year, driven by strong domestic same-store sales growth and 64 net new store openings. However, earnings declined, with net income down 3.9% to $468.9 million and diluted EPS falling to $27.63 from $28.29, primarily due to a non-cash LIFO charge that pressured gross margins.
Key Financial Metrics
Key Facts
- Net sales of $4.3 billion, up 8.1% YoY for the quarter
- Domestic same-store sales increased 3.4%, international increased 17.1% (but only 2.5% in constant currency)
- Gross margin decreased 137 bps to 52.5% due to a non-cash LIFO charge
- Operating profit declined 1.2% to $698.5 million despite sales growth
- Net income fell 3.9% to $468.9 million, with diluted EPS down to $27.63 from $28.29
- Repurchased 85,000 shares for $310.8 million at an average price of $3,666 per share
- Opened 64 net new stores globally, including 43 in the U.S., 18 in Mexico, and 3 in Brazil
Financial Impact
Revenue increased by $322 million YoY, but net income decreased by $19 million. Gross margin pressure from a $138 million non-cash LIFO charge offset operational leverage.
Risk Factors
- Continued margin pressure from inflation or LIFO accounting
- International growth may slow further when adjusted for currency
- High share repurchase price (~$3,666/share) increases execution risk
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3248165 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 24, 2026 5w ago | Press Release | $3,027.34 $2,803.25 | ▲ +7.40% | ▲ +8.64% | $2,799.52 (+7.53%) |
Jul 9, 2026 12w ago | 8-K | $3,072.64 $3,127.29 | ▲ +1.78% | ▼ −0.65% | $2,799.52 (−8.89%) |
Jul 7, 2026 12w ago | 424B5 | $3,074.86 $2,990.27 | ▼ −2.75% | ▼ −4.08% | $2,799.52 (−8.95%) |
Jul 7, 2026 12w ago | S-3ASR | $3,074.86 $2,990.27 | ▼ −2.75% | ▼ −4.08% | $2,799.52 (−8.95%) |
Jun 16, 2026 15w ago | 8-K | $3,059.63 $3,062.16 | ▲ +0.08% | ▼ −1.23% | $2,799.52 (−8.50%) |
May 26, 2026 18w ago | 8-K | $3,100.10 $3,046.46 | ▼ −1.73% | ▲ +0.54% | $2,799.52 (−9.70%) |
Mar 3, 2026 30w ago | Press Release | $3,623.59 $3,363.73 | ▼ −7.17% | ▼ −2.77% | $2,799.52 (−22.74%) |
Feb 28, 2026 30w ago | Institutional Cluster | $3,878.63 $3,334.47 | ▼ −14.03% | ▼ −6.09% | $2,799.52 (−27.82%) |
Feb 6, 2026 34w ago | Court Ruling | $3,681.26 $3,672.68 | ▼ −0.23% | ▲ +1.56% | $2,799.52 (−23.95%) |
Feb 6, 2026 34w ago | Court Ruling | $3,681.26 $3,672.68 | ▼ −0.23% | ▲ +1.56% | $2,799.52 (−23.95%) |
US Market Status
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