AI Takeaway
AutoZone delivered solid Q3 FY2026 results with revenue up 8.4% YoY to $4.84B and diluted EPS rising 7.7% to $38.07, though gross margin compressed slightly as cost of revenue grew faster than sales.
Revenue
$4.84B
++8.44% YoY
EPS (Basic)
$38.95
++7.21% YoY
Gross Margin
52.2%
-0.57% YoY
Operating Income
$923.76M
++6.65% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 8.4% YoY to $4.84B in Q3 FY2026, reflecting continued demand for auto parts across both DIY and commercial (DIFM) channels, supported by ongoing domestic and international store expansion.
Source: Source: 10-Q Income Statement
Gross margin declined approximately 57 basis points YoY to 52.15% as cost of revenue grew 9.7% — faster than the 8.4% revenue growth — indicating modest pressure from product costs, supply chain, or mix shift.
Source: Source: 10-Q Income Statement / Key Ratios
SG&A expenses rose 7.6% YoY to $1.60B, growing slightly below the 8.4% revenue pace, demonstrating reasonable operating leverage even as the company invests in labor and store operations.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockAutoZone carries negative stockholders' equity of -$2.78B, a structural feature of its aggressive share repurchase program financed largely by debt. While improving YoY (from -$3.97B), this leaves the balance sheet with limited equity cushion and makes the company sensitive to interest rate changes on its $9.02B long-term debt load.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $38.07 versus the $36.65 analyst consensus — a +3.9% beat for Q3 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $4.84B | $4.46B | +8.44% |
Cost of Revenue | $2.32B | $2.11B | +9.74% |
Gross Profit | $2.52B | $2.35B | +7.27% |
Operating Income | $923.76M | $866.17M | +6.65% |
Net Income | $641.49M | $608.44M | +5.43% |
EPS (Basic) | $38.95 | $36.33 | +7.21% |
EPS (Diluted) | $38.07 | $35.36 | +7.66% |
SG&A Expense | $1.6B | $1.49B | +7.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $20.92B | $18.62B | +12.32% |
Current Assets | $8.93B | $7.99B | +11.88% |
Current Liabilities | $10.04B | $9.47B | +6.02% |
Stockholders' Equity | $-2.78B | $-3.97B | +29.94% |
Cash & Equivalents | $253.73M | $268.63M | -5.55% |
Long-Term Debt | $9.02B | $8.85B | +1.85% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $2.12B | $2.16B | -2.08% |
Investing Cash FlowYTD | $-1.01B | $-917.26M | -10.45% |
Financing Cash FlowYTD | $-1.13B | $-1.28B | +11.52% |
Share BuybacksYTD | $1.32B | $1.14B | +16.48% |
D&AYTD | $464.13M | $415.79M | +11.63% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 52.2% | 52.7% | -0.57% |
Operating Margin | 19.1% | 19.4% | -0.32% |
Net Margin | 13.3% | — | — |
ROE | -23.0% | — | — |
ROA | 3.1% | — | — |
Current Ratio | $0.89 | — | — |
Other companies in Automotive Retail
AutoZone reported Q3 FY2026 revenue of $4.84B, up 8.4% YoY, and net income of $641.5M, up 5.4% YoY. Diluted EPS rose 7.7% to $38.07, boosted by ongoing share repurchases totaling $1.32B year-to-date.
Yes, AutoZone grew revenue 8.4% YoY to $4.84B in Q3 FY2026, compared to $4.46B in the same quarter of the prior year. Growth was driven by continued store expansion and sustained demand for auto parts across DIY and commercial channels.
Key risks include AutoZone's high leverage with $9.02B in long-term debt and negative stockholders' equity of -$2.78B, a current ratio below 1.0 at 0.89 indicating negative working capital, and gross margin compression as cost of revenue grew 9.7% versus revenue growth of 8.4%.
AutoZone's operating performance is strong with $2.12B in YTD operating cash flow and a 19.1% operating margin, but its balance sheet carries significant leverage with $9.02B in long-term debt and negative equity of -$2.78B — a deliberate result of its share buyback strategy rather than financial distress.
AutoZone spent $1.32B on share repurchases on a year-to-date basis through Q3 FY2026, up 16.5% from $1.14B in the same YTD period of the prior year. This aggressive buyback program is a key driver of EPS growth outpacing net income growth.