AutoZone, Inc.

New York Stock Exchange
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Bullish +65

AutoZone stock trades at EUR 2,543.00 after record sales, minus 0.70 percent

Analyst upgrade Earnings report Share buyback AI-generated analysis

📈 AutoZone reported fiscal 2026 GAAP net sales of USD 20.3 billion, a 7.40% year-over-year increase.

💰 Diluted GAAP EPS rose 5.30% to USD 152.55, driven by strong commercial sector performance.

🚀 Commercial sales surged 10.60% to USD 5.76 billion, serving as the clearest growth engine.

🏗️ The company opened 374 new stores, finishing fiscal 2026 with a total of 8,031 locations.

📉 Domestic same-store sales increased 3.30% for the year alongside commercial expansion.

💸 Gross margin expanded to 53.30%, up 1.82 percentage points from the prior period.

📉 Adjusted after-tax return on invested capital declined to 35.80% from 41.30% due to expansion costs.

🔁 AutoZone utilized USD 2.0 billion for share repurchases during fiscal 2026.

📊 Bernstein initiated coverage with an Outperform rating and a USD 3,698 price target.

⚖️ JPMorgan cut its price target from USD 3,850 to USD 3,700, providing a cautious counterpoint.

📉 AutoZone stock traded at EUR 2,543.00, down 0.70% versus the prior close on September 29, 2026.

Bullish Signals
  • AutoZone reported fiscal 2026 GAAP net sales of USD 20.3 billion, a significant 7.40% increase from USD 18.9 billion in the prior year.
  • Diluted GAAP EPS rose 5.30% to USD 152.55, demonstrating strong earnings growth despite market fluctuations.
  • Commercial sales surged 10.60% to USD 5.76 billion, acting as the primary driver of overall revenue expansion.
  • The company successfully opened 374 new stores during fiscal 2026, expanding its footprint to 8,031 total locations.
  • Domestic same-store sales increased 3.30% for the year, indicating healthy organic growth in core markets.
  • Gross margin expanded to 53.30%, an increase of 1.82 percentage points, reflecting improved pricing power or mix.
  • Bernstein initiated coverage with an Outperform rating and set a USD 3,698 price target, citing upside in do-it-for-me growth.
  • AutoZone allocated USD 2.0 billion to share repurchases during fiscal 2026, signaling confidence in its financial position.
Risk Factors
  • Adjusted after-tax return on invested capital declined to 35.80% from 41.30%, suggesting that recent expansion costs are impacting efficiency metrics.
  • JPMorgan cut its price target from USD 3,850 to USD 3,700, indicating some analysts view the current valuation as less attractive than previously thought.
  • AutoZone stock declined 0.70% to EUR 2,543.00 on September 29, 2026, following the mixed analyst reaction and recent earnings report.
Full Analysis
AutoZone Inc. reported strong fiscal 2026 results with GAAP net sales reaching USD 20.3 billion, representing a 7.40% increase from the prior year. The company's diluted GAAP earnings per share rose 5.30% to USD 152.55, driven by robust performance in its commercial sector and continued store expansion. Commercial sales emerged as the primary growth engine for the retailer, surging 10.60% to USD 5.76 billion. This segment benefited from increased inventory levels, enhanced delivery capacity, and the strategic rollout of Mega Hub coverage, while domestic same-store sales grew by 3.30%. Despite the positive operational metrics, AutoZone's stock price dipped slightly on September 29, 2026, following a mixed analyst reaction. Bernstein initiated coverage with an Outperform rating and a USD 3,698 target, citing upside potential in do-it-for-me services, whereas JPMorgan cut its price target to USD 3,700. Capital allocation remained aggressive with the company utilizing USD 2.0 billion for share repurchases during fiscal 2026. While gross margins expanded to 53.30%, adjusted after-tax return on invested capital declined to 35.80% from 41.30%, reflecting the costs associated with recent expansion efforts.