AutoZone beats earnings estimates but misses revenue targets

AutoZone reported fiscal fourth-quarter diluted earnings per share of $56.05 on Tuesday, beating analyst expectations, while revenue and same-store sales fell short of forecasts for the quarter ended August 29, 2026. Net income for the quarter was $931.6 million, up from $837 million a year earlier, while diluted EPS rose from $48.71. Fourth-quarter revenue increased 5.6% to $6.59 billion, missing analyst forecasts of roughly $6.69 billion to $6.71 billion. Total same-store sales rose 1.5% on a constant-currency basis, well below the 3.8% increase analysts had projected. Domestic comparable sales increased 1.6%, with an 8.6% gain in commercial sales offsetting a 0.6% decline in the do-it-yourself business. International comparable sales rose 1.3% on a constant-currency basis. Gross margin expanded 182 basis points to 53.3%, a gain the company attributed in part to a 145 basis point benefit from tariff refunds and a 105 basis point noncash LIFO adjustment, with a higher commercial sales mix partially offsetting those tailwinds. Operating expenses as a share of revenue rose to 33.4% from 32.4% a year earlier, which the company said reflected growth investments.