Autozone Stock Earnings Reports

Key investor takeaways from AutoZone's Q2 FY2026 call: Total sales +8.1% to $4.3B; total constant-currency same-store sales +3.3% (domestic comps +3.4%). Domestic DIY comp +1.5%; domestic commercial (DIFM) sales +9.8% but were materially impacted by late-quarter winter storms. GAAP EPS $27.63, down 2.3% year-over-year; EPS would have been up ~7.1% excluding a non-cash $59M LIFO charge. Management expects ~ $60M LIFO charge in each remaining quarter (total ~ $277M this year vs $64M last year). Foreign-exchange helped results this quarter (Mexican peso ~12% stronger vs prior-year quarter), providing roughly a $74M sales tailwind and ~$0.95/share benefit to EPS; if spot rates hold, Q3 would see ~ $75M revenue and ~$0.85 EPS benefit. Gross margin 52.5% (-137 bps); excluding LIFO gross margin roughly flat. Operating expenses +8.7% (SG&A per store +3.9%); investments are intentional to support growth initiatives. CapEx ~ $1.6B this year (expect similar next year) focused on accelerated store growth, hubs/Mega Hubs and DCs. Store openings: 64 net opened in Q2; on track for ~350–360 net new stores in FY2026 (vs 304 prior year); target ~300 Mega Hubs at full build-out (currently 142). Inventory per store +8.1%, total inventory +13.1% YoY. Free cash flow was $15M in Q2 (vs $291M prior year quarter) year-to-date FCF $645M vs $856M LY, driven by CapEx and payables timing. Capital returns: repurchased $311M of stock in the quarter; $1.4B remaining authorization. Management outlook: bullish on back half of FY26 driven by market-share gains, expected traffic improvement (helped by summer effects from winter weather and potentially larger tax refunds), mid-single-digit same-SKU inflation persisting through Q3 and into Q4, and continued confidence in returns on invested capital from store/DIFM investments. Q3 modeling notes: expect ~ $60M LIFO charge reducing EBIT by ~125 bps and EPS by ~$2.75; interest expense ~ $112M; suggested Q3 tax rate ~22.9%.