AutoZone, Inc. Q2 2026 Earnings Recap

AutoZone reported a solid 8.1% sales growth in Q2 2026; however, EPS declined by 2.3% due to a significant non-cash LIFO charge impacting margins.

Key Takeaways

• Gross margin and operating profit pressures stemmed from a $59 million LIFO charge, with adjusted EPS reflecting a 7.1% increase year-over-year.
• Domestic commercial sales rose 9.8%, driven by strong demand despite negative impacts from severe winter weather in late January and early February.
• The company opened 64 new stores this quarter, surpassing last year's pace, and is on track to open between 350 to 360 stores in FY 2026.
• International same store sales improved by 2.5% in constant currency terms, bolstered by favorable exchange rates, leading to a 17.1% unadjusted comp.
• Market share gains are anticipated as the company leverages summer season trends and historical weather patterns to drive demand.