AutoZone fourth-quarter net sales rise to $6.6 billion as earnings reach $56.05 per share

AutoZone, Inc. (AZO) reported net sales of $6.6 billion for its fourth quarter ended August 29, 2026, marking an increase of 5.6% from the same period a year earlier, according to a regulatory filing.

Key takeaways

• Fourth-quarter net sales reached $6.6 billion, up 5.6% from a year earlier.
• Diluted earnings per share were $56.05, compared to $48.71 a year earlier.
• Total company same-store sales increased 2.7%, or 1.5% on a constant currency basis.
• Annual net sales for fiscal 2026 totaled $20.3 billion, an increase of 7.4% from the prior year.

Fourth-quarter results

Here's how the company did:

• Net sales were $6.6 billion, up from $6.2 billion a year earlier.
• Gross profit was $3.5 billion, representing 53.3% of sales.
• Operating profit increased 10.1% to $1.3 billion.
• Net income was $931.6 million, compared to $837.0 million a year earlier.
• Diluted earnings per share were $56.05, up from $48.71 a year earlier.

For the fiscal year ended August 29, 2026, net sales reached $20.3 billion compared to $18.9 billion in fiscal 2025. Annual net income increased 3.0% to $2.6 billion, and diluted earnings per share rose 5.3% to $152.55 from $144.87.

Store expansion and share repurchases

During the quarter, AutoZone opened 175 new stores, including 97 in the U.S., 68 in Mexico, and 10 in Brazil, bringing its total store count to 8,031. For the full fiscal year, the company opened 374 new stores.

Under its share repurchase program, AutoZone repurchased 223 thousand shares of its common stock at an average price of $3,125 per share during the quarter, for a total investment of $697.5 million. For the fiscal year, the company repurchased 579 thousand shares at an average price of $3,496, totaling $2.0 billion. At year end, the company had $1.6 billion remaining under its current share repurchase authorization.

“I want to thank our entire organization for delivering another quarter of sales and earnings growth. In spite of a difficult selling environment the first eight weeks of our quarter, we remained committed to executing on our strategies to grow both our domestic and international businesses,” said Phil Daniele, President and Chief Executive Officer, in a statement.

Why it matters

The fourth-quarter performance reflects steady top-line growth despite a challenging selling environment during the first eight weeks of the period. Management noted that sales strengthened over the final eight weeks of the quarter, positioning the company for continued sales growth across all three operating countries in fiscal 2027.

By the numbers

| Metric | Value | Source | |---|---|---|> | Fourth-quarter net sales | $6,594,879 thousand | 8-K filing | | Fourth-quarter net income | $931,587 thousand | 8-K filing | | Fourth-quarter diluted EPS | $56.05 | 8-K filing | | Annual net sales | $20,338,555 thousand | 8-K filing | | Annual net income | $2,572,777 thousand | 8-K filing | | Annual diluted EPS | $152.55 | 8-K filing |

Operating results and outlook

Gross profit as a percentage of sales was 53.3% for the fourth quarter, driven by a 145 basis point impact from tariff refunds and a 105 basis point net non-cash LIFO impact, offset by a higher commercial mix. Operating expenses as a percentage of sales were 33.4%, up from 32.4% a year earlier due to growth initiatives. Inventory increased 10.1% over the same period last year, reaching $7.7 billion.