AutoZone (AZO) quarter:Q1 year 2026 Financial Results Summary

2025-12-09 · Stocks · QuoteReporter

AutoZone (AZO) Q1 2026 Financial Results Summary

Release Date: December 09, 2025

AutoZone, Inc. (NYSE: AZO) reported its financial results for the first quarter of fiscal 2026 (12 weeks) ending November 22, 2025. Below is a summary of the key metrics and operating details from the report:

• Financial Performance:
• Net Sales: $4.6 billion, an increase of 8.2% from Q1 FY2025.
• Gross Profit Margin: 51.0%, a decrease of 203 basis points year-over-year.
• Operating Profit: $784.2 million, down 6.8% compared to the same quarter last year.
• Net Income: $530.8 million, compared to $564.9 million a year ago, showing a decrease of 6.0%.

• Diluted Earnings per Share (EPS): $31.04 versus $32.52 in Q1 FY2025, marking a decline of 4.5%.

• Same Store Sales:

• Domestic Same Store Sales: Increased by 4.8% year-over-year.
• International Same Store Sales: Increased by 11.2%, an uptick from 1.0% growth year-over-year.

• Total Company Same Store Sales: Increased by 5.5%, compared to a growth of 0.4% in the prior year.

• Operating Expenses:

• Operating expenses, as a percentage of sales, were 34.0%, up from 33.3% the previous year.

• This operating expense growth was driven by investments in growth initiatives.

• Share Repurchase Program:

• AutoZone repurchased 108,000 shares of its common stock at an average price of $3,999, for a total investment of $431.1 million.

• The company had $1.7 billion remaining under its share repurchase authorization.

• Inventory and Costs:

• Inventory: Increased by 13.9% year-over-year, primarily due to growth initiatives and inflation.

• Net Inventory per Store: Recorded at negative $145,000, improved from negative $166,000 in the same quarter last year.

• New Store Openings:

• AutoZone opened a total of 53 new stores globally during the quarter, including:
  • 39 in the U.S.
  • 12 in Mexico
  • 2 in Brazil

• Total store count as of November 22, 2025, reached 7,710, consisting of:

  • 6,666 stores in the U.S.
  • 895 in Mexico
  • 149 in Brazil.

• Sales Metrics:

• Sales per Average Store: Increased to $602 in Q1 FY2026, up from $570 in Q1 FY2025.

• Sales per Average Square Foot: Increased to $89, compared to $85 a year ago.

• Cash Flow and Capital Expenditures:

• Cash flow from operations was $944.2 million, up from $811.8 million year-over-year.

• Capital spending increased to $314.2 million versus $247.0 million in the previous year.

• Adjusted Debt Metrics:

• Adjusted debt to EBITDAR ratio remained stable at 2.5.
• Adjusted after-tax Return on Invested Capital (ROIC) was recorded at 39.6%, down from 47.7% in the previous year.

In summary, AutoZone’s first-quarter performance reflected a mix of growth and challenges, marked by healthy increases in sales and store openings but also a decline in profitability metrics and inventory cost pressures. The company’s ongoing strategic investments to support growth initiatives are anticipated to strengthen its market position moving forward.

Condensed Consolidated Statements of Operations (in thousands, except per share data)

Condensed Consolidated Balance Sheets (in thousands)