# AZO earnings call intelligence LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/AZO) · [Earnings tab](https://www.lopjlb.com/stock/AZO?tab=earnings) Updated: 2026-09-23T07:50:33 Quarters analyzed: 8 ## Cross-quarter narrative Across the eight earnings calls from FY25 Q1 to FY26 Q4, AutoZone moved from modest single‑digit sales growth and cautious consumer sentiment toward consistently high double‑digit top‑line expansion, driven by commercial traffic and aggressive store roll‑out. Gross margin pressure shifted from a modest rise in FY25 Q1 to flat or slightly lower levels as LIFO adjustments, inflation‑driven ticket pricing and tariff refunds took effect. Capital deployment stayed robust, scaling from a $1 billion capex base to roughly $1.6‑$1.65 billion for FY27, underpinning store, mega‑hub, distribution‑center and IT projects. Weather‑related volatility and foreign‑exchange headwinds persisted each quarter, while inflation and tariff cost concerns remained recurring themes. The LIFO charge emerged as a new margin drag in FY25 Q4 and continued through FY26. Execution risk from rapid store expansion was highlighted in FY25 Q4 but faded from later commentary. Overall, the company’s strategic milestones—store openings, mega‑hub and international expansion, and supply‑chain upgrades—showed steady progress, with several milestones moving from on‑track to delivered status. ## Latest CallCard · Q4 AutoZone Q4 FY2026: sales +5.6%, EPS +15.1%; DIY comps -0.6%, commercial +8.6%; opened record 374 stores; FY2027 outlook: domestic comps flat to low single digits, commercial high single to low double digits, international low to mid-single digit constant currency; ~400 store openings, ~$1.65B CapEx **Guidance:** maintained — Provided initial FY2027 outlook: domestic same-store sales flat to low single digits, commercial high single to low double digits, international low to mid-single digit constant currency comps; ~400 store openings, ~$1.65B CapEx. **Tone:** mgmt 0.3 · Q&A pressure 0.6 · divergence 0.4 Management expressed optimism about sales momentum exiting Q4, market share gains, and international growth, while acknowledging DIY underperformance due to milder temperatures and inflation pressuring traffic. ### Demand visibility Moderate visibility with DIY traffic pressured by inflation but improving exit rates; commercial momentum strong; international showing signs of inflection. DIY transactions declined ~5% in Q4 but improved in August; commercial sales grew ~9% with Mega Hub expansion driving share gains; international same-store sales up 1.3% constant currency with uptick in last four weeks; FY2027 guidance assumes ~4% ticket growth for both DIY and commercial. ### Margins / costs Gross margin benefited from tariff refunds; LIFO charges expected to normalize; SG&A deleveraging from accelerated store growth. Q4 gross margin 53.3% (+182 bps) included $96M tariff refund and $15M LIFO charge; FY2027 gross margin expected flat to +25 bps ex-LIFO; LIFO charges modeled at $85-90M; SG&A per store up ~3% in FY2027 as store growth continues. ### Capital allocation Aggressive share repurchases ($2B in FY2026) funded by strong free cash flow; $1.6B remaining authorization; CapEx ~$1.65B for FY2027. Q4 free cash flow $684M; FY2026 free cash flow ~$1.8B flat YoY despite higher CapEx; leverage 2.5x EBITDA; share count down 3.3% YoY; committed to disciplined capital allocation balancing growth investment and buybacks. ### Milestones - **Mega Hub expansion (target ~300)** [on_track]: 172 Mega Hubs currently; opened 39 in FY2026; plan 40+ in FY2027; Mega Hub programs sell 16% more annually. - **International store build-out (Mexico, Brazil)** [on_track]: 1,001 stores in Mexico, 167 in Brazil; FY2027 plan ~120 Mexico, ~20 Brazil, ~300 US; long-term goal ~430 annually. - **US distribution center expansion** [delivered]: Two new US DCs and two direct import facilities completed. - **Monterrey Mexico DC relocation** [delivered]: New DC more than 2x size of previous, fully operational. ## Quarter one-liners - **2026 Q4:** AutoZone Q4 FY2026: sales +5.6%, EPS +15.1%; DIY comps -0.6%, commercial +8.6%; opened record 374 stores; FY2027 outlook: domestic comps flat to low single digits, commercial high single to low double digits, international low to mid-single digit constant currency; ~400 store openings, ~$1.65B CapEx - **2026 Q3:** AutoZone Q3 sales +8.4% (ex-LIFO EPS +12.5%), driven by commercial +10.4% and DIY +2.2%; opening 365 stores FY26, mega hubs accelerating; weather hurt late-quarter heat categories; guiding similar international comps Q4. - **2026 Q2:** AutoZone Q2 sales rose 8.1% to $4.3B, but EPS fell 2.3% after a $59M LIFO charge, with winter storms dampening commercial traffic and management staying upbeat on growth initiatives. - **2026 Q1:** AutoZone Q1 2026 showed 8.2% sales growth but EPS fell 4.6% due to a $98M LIFO charge, while store openings, mega‑hub rollout and capex investments underpin a bullish outlook despite weather‑linked demand volatility. - **2025 Q4:** AutoZone posted modest sales growth, strong commercial acceleration and aggressive store expansion while noting inflation, FX headwinds and execution risks. - **2025 Q3:** — - **2025 Q2:** AutoZone Q2 FY25 showed modest sales growth, flat gross margin, FX headwinds and weather‑driven volatility, while management stays upbeat on store, hub and IT investments. - **2025 Q1:** AutoZone Q1 FY25 delivered 2.1% sales growth, modest same‑store gains and a 0.1% EPS dip, while FX headwinds and cautious consumer spending were offset by hub expansion, international store openings and a confident outlook for Q2. ## Theme arcs - **Sales growth** (improving): Growth accelerated from ~2% FY25 Q1 to >8% in FY26 quarters - **Gross margin pressure** (deteriorating): Margins flattened or fell due to LIFO charges, inflation and tariff impacts - **Capital investment level** (stable): Capex maintained above $1B, rising to $1.6‑$1.65B for FY27 - **Store expansion pace** (improving): Opened record 374 stores FY26 Q4, with ongoing rollout - **Mega‑hub rollout** (improving): Mega‑hub count grew from on‑track status to target ~300 by FY26 Q4 - **International expansion** (improving): Consistent openings in Mexico and Brazil, on‑track through FY26 ## Guidance path 2025 Q1:maintained → 2025 Q2:maintained → 2025 Q3:vague → 2025 Q4:vague → 2026 Q1:maintained → 2026 Q2:maintained → 2026 Q3:vague → 2026 Q4:maintained --- Research context only. Not personalized investment advice. API: `GET /bff/api/bigfive/earnings-intel/AZO`