Earnings call transcript: AutoZone beats Q4 2026 EPS forecast as stock rises

On the company's earnings call, AutoZone reported fiscal fourth-quarter 2026 earnings that surpassed Wall Street's profit forecast. Despite a slight dip in revenue, the auto-parts retailer's profits per share rose to $56.06, exceeding the forecasted $54.30. Meanwhile, revenue reached $6.6 billion, slightly falling short of the anticipated $6.71 billion. As a result, shares increased by 5.35%, closing at $2,953.36 in premarket trading, compared to the previous close of $2,803.25.

The earnings beat came in at 3.24%, while revenue missed estimates by 1.64%. However, sales grew by 5.6% year-over-year, driven by expansion in both domestic and international markets. Gross margin saw a significant improvement, and cash flow remained robust. Management highlighted continued growth in commercial auto parts and steady store network expansion.

Fiscal fourth-quarter sales surged 5.6% year-over-year, marking a stronger pace than the prior quarter. EPS climbed 15.1% year-over-year, driven by higher sales, better gross margin, and a lower diluted share count. Domestic same-store sales grew by 1.6%, while international same-store sales increased by 1.3% on a constant-currency basis, with an 10.7% unadjusted growth.

For the full fiscal year, AutoZone crossed a major milestone, surpassing the $20 billion sales mark for the first time. Annual revenue grew by 7.4% to $20.3 billion, while full-year EPS increased by 5.3% to $152.55. The company's commercial business continues to thrive on improved inventory availability, hub and Mega Hub expansion, and stronger service levels.