AutoZone, Inc. (AZO) AI Stock Analysis

AutoZone, Inc. retails and distributes automotive replacement parts, maintenance items, and accessories for cars, SUVs, vans, and light trucks. Its product range spans hard parts such as alternators, starters, radiators, and water pumps, alongside maintenance essentials like motor oil, fluids, and filters. The company also sells tools, accessories, and convenience merchandise. In addition to retail store sales, AutoZone runs a commercial sales program offering credit and delivery services to professional repair shops. It also provides automotive diagnostic and repair software through ALLDATA platforms. Founded in 1979 and based in Memphis, Tennessee, AutoZone operates locations across the United States, Mexico, and Brazil.

AutoZone grew annual revenue from $16.25B in FY2022 to $20.34B in FY2026, marking a 5-year revenue compound annual growth rate of 6.8%. Annual net income expanded from $2.43B in FY2022 to $2.57B in FY2026, while diluted EPS increased from $117.53 to $163.23 over the same timeframe. Annual operating margin moderated from 20.1% in FY2022 to 18.3% in FY2026, with gross margin remaining steady at 52.3% in FY2026 compared to 52.1% in FY2022. In the latest quarter ended August 31, 2026, AutoZone reported quarterly revenue growth of 5.6% year-over-year and quarterly earnings growth of 15.0% year-over-year, alongside a trailing twelve-month operating margin of 20.0%.

As of August 31, 2026, AutoZone held $326.1M in cash and short-term investments against $12.45B in total debt, resulting in net debt of $12.12B. Total assets stood at $21.63B, and the current ratio was 0.90. The company reported negative shareholders' equity of -$2.50B. Capital allocation in FY2025 included $1.33B in capital expenditures and $1.58B allocated to share buybacks. Through ongoing share repurchases, AutoZone reduced its share count by 22.0% over the past 5 years.

AutoZone trades at a trailing price-to-earnings multiple of 20.5x and a forward P/E of 16.5x, compared to the median of its S&P 500 Consumer Cyclical peers of 19.7x trailing and 15.6x forward. The company's enterprise value is $58.36B, reflecting an EV-to-EBITDA multiple of 13.8x, slightly above the peer median of 13.2x. Over the past year, AZO shares dropped 22.1%, underperforming the S&P 500 ETF (SPY) gain of 16.8%. Over a 5-year span, AZO returned 79.8% relative to 83.0% for the S&P 500 ETF.

Wall Street coverage includes 18 Strong Buy, 5 Buy, and 4 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $3719.96, representing an upside of 19.2% over the last close of $3120.59. For the fiscal year ending August 31, 2027, consensus estimates forecast revenue of $21.84B and EPS of $169.69, implying 11.2% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters. The next earnings date is December 8, 2026.

This page is an AI-written research summary of AutoZone, Inc. (AZO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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