AutoZone Net Income Falls 5% to $1.00 Billion in First Half of Fiscal 2026

AutoZone Inc., an automotive parts and accessories retailer, reported net income of $999.68 million for the six months ending February 14, 2026, down 5.1% from $1.05 billion in the prior-year period. Revenue climbed 8.2% to $8.90 billion from $8.23 billion a year earlier. Read more earnings reports.

For the quarter ending February 14, 2026, the company posted net income of $468.86 million, a 3.9% decline from $487.92 million in the same quarter last year. Quarterly revenue rose 8.1% to $4.27 billion from $3.95 billion.

Diluted earnings per share for the first half of fiscal 2026 came in at $58.68, compared to $60.83 in the prior-year period. Second-quarter diluted EPS was $27.63, versus $28.29 a year earlier. The share count declined to 17.04 million diluted shares for the six-month period from 17.31 million, reflecting ongoing share buybacks.

Operating income for the six months fell 4.2% to $1.48 billion from $1.55 billion, even as revenue expanded. Cost of goods sold increased to $4.30 billion from $3.84 billion, while selling, general and administrative expenses rose to $3.12 billion from $2.85 billion.

Gross profit for the first half reached $4.60 billion, up from $4.40 billion in the prior year. The gross margin narrowed to 51.7% from 53.4%.

Balance Sheet and Cash Flow

Total assets grew to $20.44 billion as of February 14, 2026, up from $19.36 billion at the end of fiscal 2025 in August. Current assets rose to $8.83 billion from $8.34 billion. Cash and cash equivalents stood at $285.49 million, compared to $271.80 million six months earlier.

Long-term debt increased to $8.91 billion from $8.80 billion. The company continues to operate with negative stockholders' equity, which stood at negative $2.91 billion as of February 14, compared to negative $3.41 billion at the prior fiscal year-end. Retained deficit widened to negative $4.39 billion from negative $3.98 billion.

Cash from operations for the six months totaled $1.32 billion, down from $1.40 billion in the prior-year period. Capital expenditures consumed $667.50 million in investing activities, up from $563.42 million. Financing activities used $642.90 million in cash, compared to $826.45 million a year earlier.

Key Financial Metrics

AutoZone operated with 16.48 million shares outstanding as of the period end. Accounts payable increased to $8.30 billion from $8.03 billion, while current liabilities rose to $9.92 billion from $9.52 billion.