Auto parts and accessories retailer AutoZone (NYSE: AZO) missed Wall Street’s revenue expectations in Q2 CY2026, but sales rose 8.4% year on year to $4.84 billion. Its GAAP profit of $38.07 per share was 5.3% above analysts’ consensus estimates.
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AutoZone (AZO) Q2 CY2026 Highlights:
- Revenue: $4.84 billion vs analyst estimates of $4.87 billion (8.4% year-on-year growth, 0.6% miss)
- EPS (GAAP): $38.07 vs analyst estimates of $36.17 (5.3% beat)
- Operating Margin: 19.1%, in line with the same quarter last year
- Free Cash Flow Margin: 25.6%, up from 9.5% in the same quarter last year
- Locations: 7,856 at quarter end, up from 7,516 in the same quarter last year
- Same-Store Sales rose 5.5% year on year (3.2% in the same quarter last year)
- Market Capitalization: $56.13 billion
Company Overview
Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE: AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years.
With $19.99 billion in revenue over the past 12 months, AutoZone is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it’s harder to find incremental growth when you’ve penetrated most of the market. To expand meaningfully, AutoZone likely needs to tweak its prices or enter new markets.
As you can see below, AutoZone’s 5.3% annualized revenue growth over the last three years was tepid, but to its credit, it opened new stores and increased sales at existing, established locations.
This quarter, AutoZone’s revenue grew by 8.4% year on year to $4.84 billion, missing Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 8.2% over the next 12 months, an acceleration versus the last three years. This projection is particularly noteworthy for a company of its scale and indicates its newer products will spur better top-line performance.
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Store Performance
Number of Stores
A retailer’s store count often determines how much revenue it can generate.
AutoZone sported 7,856 locations in the latest quarter. Over the last two years, it has opened new stores quickly, averaging 3.9% annual growth. This was faster than the broader consumer retail sector.
When a retailer opens new stores, it usually means it’s investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance.
Same-Store Sales
The change in a company's store base only tells one side of the story. The other is the performance of its existing locations and e-commerce sales, which informs management teams whether they should expand or downsize their physical footprints. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year.
AutoZone’s demand has been healthy for a retailer over the last two years. On average, the company has grown its same-store sales by a robust 3.2% per year. This performance suggests its rollout of new stores could be beneficial for shareholders. When a retailer has demand, more locations should help it reach more customers and boost revenue growth.
In the latest quarter, AutoZone’s same-store sales rose 5.5% year on year. This growth was an acceleration from its historical levels, which is always an encouraging sign.
Key Takeaways from AutoZone’s Q2 Results
Revenue missed, but EPS managed to beat. Overall, was a mixed quarter. Investors were likely hoping for more, and shares traded down 1.1% to $3,370 immediately following the results.
Big picture, is AutoZone a buy here and now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
