AutoZone FY2026: Sales $20.3B (+7.4%), EPS $152.55 (+5.3%), ROIC Slips to 35.8%
AZO sits 17% above its 52-week low of $2,730.65.
Summary
AutoZone's FY2026 10-K shows sales up 7.4% to $20.3 billion and EPS up 5.3% to $152.55, but a $192 million LIFO charge held operating profit growth to 3.1% and ROIC fell to 35.8% from 41.3%.
Key Events · Earnings and Guidance · AZO
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FY2026 Sales and EPS Growth
Net sales rose 7.4% to $20.34 billion and diluted EPS rose 5.3% to $152.55; net income was $2.57 billion, up 3.0%.
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LIFO Charge Squeezes Gross Margin
Gross margin fell 29 basis points to 52.3% on a $192.0 million non-cash LIFO charge versus $64.0 million a year earlier; operating profit grew only 3.1% to $3.72 billion.
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Tariff Refunds Flatter the Year
AutoZone received $127.6 million of IEEPA tariff refunds, of which $96.0 million reduced cost of sales; FX added $254.4 million to sales and $73.9 million to operating profit.
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ROIC Declines on Capital Build-Out
After-tax ROIC fell to 35.8% from 41.3% as invested capital rose to $9.33 billion from $7.87 billion; capital expenditures were $1.43 billion and 374 net new stores opened.
Analysis · AZO · Trade & Services
The annual report confirms the growth story but exposes the margin squeeze underneath it. Sales rose 7.4% to $20.3 billion and diluted EPS climbed 5.3% to $152.55, yet operating profit grew only 3.1% because a $192.0 million non-cash LIFO charge (versus $64.0 million a year earlier) cut gross margin by 29 basis points to 52.3%. Strip out $96.0 million of one-time IEEPA tariff refunds and $73.9 million of favorable FX, and the underlying operating trend is flatter than the headline. The more telling number is after-tax ROIC, which fell to 35.8% from 41.3% as invested capital grew faster than profit — the cost of the aggressive store and hub build-out. Capital returns remain the core of the thesis: the board added $1.5 billion to the buyback in June, bringing total authorization to $42.2 billion, with $1.6 billion left at year-end and another $310.6 million spent through October 19. Balance sheet is solid — $9.1 billion of debt, 2.5x adjusted debt to EBITDAR, 5.2:1 interest coverage, and no revolver borrowings.
How filings like this one have moved
In the 30 days to Oct 27, 2026, 29.9% of the 1374 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.12%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, AZO was trading at $3,190.07 on NYSE in the Trade & Services sector, with a market capitalization of approximately $52.1B. The 52-week trading range was $2,730.65 to $3,996.25. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.