AutoZone (AZO) Q3 2026 earnings summary

Executive summary

• Net sales increased 8.4% year-over-year to $4.84 billion for Q3 FY26, the highest growth since Q2 FY 2023, with strong market share gains and accelerated global store openings.

• Diluted EPS rose 7.7% to $38.07, and net income grew 5.4% to $641 million compared to Q3 FY25.

• Domestic same-store sales grew 4.1%, and international same-store sales rose 1.6% on a constant currency basis.

• Commercial sales grew 10.4% year-over-year to $1.4 billion, outpacing DIY growth of 2.2%.

• Opened 82 new stores globally in the quarter, bringing the total to 7,856 and on track for 355-365 new stores in FY 2026.

Financial highlights

• Total sales reached $4.84 billion, up 8.4% year-over-year.

• EBIT increased 6.6% to $924 million; EBIT margin at 19.1%.

• Gross margin was 52.2%, down 57 bps due to LIFO, but up 20 bps excluding LIFO impacts.

• Free cash flow for the quarter was $455 million, with $1.1 billion generated year-to-date.

• Operating expense ratio improved by 25 bps to 33.1%.

Outlook and guidance

• Management expects to open approximately 355-365 stores for the full fiscal year.

• Q4 same-store sales growth expected to be similar to Q3, with inflation and average ticket growth moderating to around 4%.

• LIFO charge for Q4 projected at $30 million, impacting gross margin by 45 bps and EPS by $1.40.

• Focus remains on accelerating growth in domestic commercial and DIY segments, international expansion, and leveraging technology for customer experience.