AutoZone’s recent second-quarter earnings report, released Tuesday, revealed a slight miss on both earnings and revenue expectations, sending the company’s stock down nearly 6% by the close of trading, according to Benzinga Pro data.
The auto parts retailer reported earnings of $27.63 per share, just shy of the anticipated $27.76. Revenue reached $4.27 billion, a rise of 8.1% year-over-year, but falling slightly below the projected $4.31 billion. Comparable sales growth showed a 5.2% increase with domestic sales up 3.4% and international sales climbing 17.1%. Still, the company also noted a decline in gross margin, down 137 basis points year-over-year, attributed to a non-cash LIFO headwind.
Despite the earnings shortfall, AutoZone continues to focus on expanding its market share within the fragmented automotive industry and maintaining a disciplined approach to financial growth, aiming to enhance shareholder value. The company repurchased 85,000 shares in the quarter at an average price of $3,666, totaling $310.8 million, and has $1.4 billion remaining under its current share repurchase authorization.
AutoZone’s expansion efforts continued in the quarter ending February 14, 2026, with the opening of 43 stores in the U.S., alongside 18 new locations in Mexico and 3 in Brazil, bringing the total net new store count to 64.
