AZO earnings analysis
What we found in AZO's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
AutoZone reported Q3 2026 earnings with total net sales rising to $4.8 billion, an 8.4% increase compared to the previous year. Despite slight declines in gross and operating margins to 52.2% and 19.4% respectively, earnings per share (EPS) climbed 7.7% to $38.07, exceeding analyst expectations. The quarter was positively impacted by 3.9% same-store sales growth and a notable increase in domestic commercial sales.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Robust Revenue Growth
- Net sales increased to $4.8 billion, up 8.4% from $4.4 billion a year ago.
- EPS Surpass Estimates
- Reported EPS of $38.07 beat estimates of $36.15, reflecting a 7.7% increase year-over-year.
- Strong Commercial Sales Growth
- Domestic commercial sales rose 10.4% to $1.4 billion compared to the prior year.
- Stable Same-Store Sales
- Same-store sales grew 3.9% on a constant currency basis, highlighting consistent demand.
- Cash Flow Resilience
- Generated $2.1 billion in net cash flows from operating activities, supported by solid performance.
- New Store Openings
- Opened 199 new stores year-to-date, contributing to revenue growth.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- LIFO Accounting Impact
- Operating profit was negatively impacted by a $36 million net unfavorable non-cash LIFO adjustment.
- Decreased Cash Flow
- Operating cash flow fell to $2.1 billion from $2.2 billion in the comparable prior year.
- Potential Economic Challenges
- Management cited risks from inflation, interest rates, and potential supply chain disruptions.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $38.07
- Gross margin
- 52.2%
- Operating margin
- 19.4%
- Segment
- Domestic Sales
- Segment
- International Sales
What they said about what is next.
Management anticipates ongoing investment in growth initiatives and plans to monitor market trends closely.
The filing reads better than the one before it.
What came before.
- 10-Q · March 20, 2026
- AutoZone reported twelve-week net sales of $4,274,098,000 (up $322,086,000 vs. prior year) and diluted EPS of $27.63 (down from $28.29 a year ago). Gross profit rose in dollars to $2,243,358,000 but gross margin…
- 10-Q · June 13, 2025
- AutoZone reported twelve-week net sales of $4,464,339,000 (up $228,854,000 or ~5.4% vs. the twelve weeks ended May 4, 2024) and diluted EPS of $35.36 (down from $36.69). Gross margin compressed to 52.7% while operating…
- 10-Q · March 21, 2025
- AutoZone reported modest revenue growth for the twelve weeks ended February 15, 2025, with net sales of $3,952,012 (thousands) versus $3,859,126 (thousands) a year earlier, while operating profit and diluted EPS…
- 10-Q · December 20, 2024
- AutoZone reported net sales of $4,279,641,000 for the twelve weeks ended November 23, 2024, up $89,364,000 (+2.1%) versus the prior year period. Gross margin was roughly stable at ~53.0% while operating margin…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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