Autozone Inc 10-Q for FY2026 Q3

Autozone Inc (AZO)

10-Q 2026-06-12 For: 2026-05-09

Added on June 12, 2026

About this 10-Q

Autozone Inc filed this 10-Q on June 12, 2026, covering the quarter ended May 9, 2026 (FY2026 Q3).

Headline figures

Quarter ended May 9, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $4.84B; up 8.4% from $4.46B a year earlier
Net income: $641.49M; up 5.4% from net income of $608.44M a year earlier
Diluted EPS: $38.07; up 7.7% from $35.36 a year earlier

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☒		Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the quarterly period ended May 9, 2026 or

☐		Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
		For the transition period from _______ to ________.

		Commission file number 1-10714


Nevada	62-1482048
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)


123 South Front Street, Memphis, Tennessee	38103
(Address of principal executive offices)	(Zip Code)

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on which Registered
Common Stock ($0.01 par value)		AZO		New York Stock Exchange


Large accelerated filer ☒	Accelerated filer ☐
Non-accelerated filer ☐	Smaller reporting company ☐
Emerging growth company ☐


PART I.		FINANCIAL INFORMATION	3
	Item 1.	Financial Statements	3
		CONDENSED CONSOLIDATED BALANCE SHEETS	3
		CONDENSED CONSOLIDATED STATEMENTS OF INCOME	4
		CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME	4
		CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS	5
		CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT	6
		NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	7
		REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	18
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
	Item 4.	Controls and Procedures	28
PART II.		OTHER INFORMATION	29
	Item 1.	Legal Proceedings	29
	Item 1A.	Risk Factors	29
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
	Item 3.	Defaults Upon Senior Securities	29
	Item 4.	Mine Safety Disclosures	29
	Item 5.	Other Information	29
	Item 6.	Exhibits	29
SIGNATURES			31


	May 9,		August 30,
(in thousands)	2026		2025

Assets
Current assets:
Cash and cash equivalents	$	253,729	$	271,803
Accounts receivable		764,924		670,137
Merchandise inventories		7,559,056		7,025,688
Other current assets		356,860		373,751
Total current assets		8,934,569		8,341,379

Property and equipment:
Property and equipment		13,742,967		12,552,328
Less: Accumulated depreciation and amortization		(5,945,979)		(5,489,819)
		7,796,988		7,062,509

Operating lease right-of-use assets		3,413,970		3,194,666
Goodwill		302,645		302,645
Deferred income taxes		132,109		118,433
Other long-term assets		336,182		335,692
Total assets	$	20,916,463	$	19,355,324

Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	8,401,277	$	8,025,590
Current portion of operating lease liabilities		336,340		283,564
Accrued expenses and other		1,226,757		1,151,536
Income taxes payable		70,939		58,707
Total current liabilities		10,035,313		9,519,397

Long-term debt		9,016,477		8,799,775
Operating lease liabilities, less current portion		3,278,354		3,093,936
Deferred income taxes		483,718		520,510
Other long-term liabilities		887,153		836,019

Commitments and contingencies		—		—

Stockholders’ deficit:
Preferred stock, authorized 1,000 shares; no shares issued		—		—
Common stock, par value $.01 per share, authorized 200,000 shares; 16,592 shares issued and 16,369 shares outstanding as of May 9, 2026; 16,927 shares issued and 16,665 shares outstanding as of August 30, 2025		166		169
Additional paid-in capital		1,967,484		1,843,779
Retained deficit		(3,750,078)		(3,975,852)
Accumulated other comprehensive loss		(137,049)		(285,010)
Treasury stock, at cost		(865,075)		(997,399)
Total stockholders’ deficit		(2,784,552)		(3,414,313)
Total liabilities and stockholders’ deficit	$	20,916,463	$	19,355,324


	Twelve Weeks Ended				Thirty-Six Weeks Ended
	May 9,		May 10,		May 9,		May 10,
(in thousands, except per share data)	2026		2025		2026		2025

Net sales	$	4,840,950	$	4,464,339	$	13,743,677	$	12,695,991
Cost of sales, including warehouse and delivery expenses		2,316,376		2,110,816		6,616,431		5,946,010
Gross profit		2,524,574		2,353,523		7,127,246		6,749,981
Operating, selling, general and administrative expenses		1,600,818		1,487,349		4,720,865		4,335,891
Operating profit		923,756		866,174		2,406,381		2,414,090
Interest expense, net		110,490		111,285		323,929		327,736
Income before income taxes		813,266		754,889		2,082,452		2,086,354
Income tax expense		171,775		146,449		441,278		425,057
Net income	$	641,491	$	608,440	$	1,641,174	$	1,661,297

Weighted average shares for basic earnings per share		16,468		16,746		16,564		16,815
Effect of dilutive stock equivalents		384		461		410		459
Weighted average shares for diluted earnings per share		16,852		17,207		16,974		17,274

Basic earnings per share	$	38.95	$	36.33	$	99.08	$	98.80
Diluted earnings per share	$	38.07	$	35.36	$	96.69	$	96.17



		Thirty-Six Weeks Ended
		May 9,		May 10,
(in thousands)		2026		2025

Cash flows from operating activities:
Net income		$	1,641,174	$	1,661,297
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment			464,126		415,787
Other non-cash charges (income)			177,000		(16,000)
Amortization of debt origination fees			8,773		9,083
Deferred income taxes			(157,734)		(59,320)
Share-based compensation expense			97,641		85,584
Changes in operating assets and liabilities:
Accounts receivable			(86,607)		(41,820)
Merchandise inventories			(656,508)		(642,317)
Accounts payable and accrued expenses			347,468		603,613
Income taxes			206,209		135,953
Other, net			78,045		12,722
Net cash provided by operating activities			2,119,587		2,164,582

Cash flows from investing activities:
Capital expenditures			(997,486)		(885,623)
Purchase of marketable debt securities			(35,446)		(54,250)
Proceeds from sale of marketable debt securities			17,672		54,827
Net investment in tax credit equity investments			(9,216)		(50,424)
Other, net			11,388		18,209
Net cash used in investing activities			(1,013,088)		(917,261)

Cash flows from financing activities:
Net proceeds from commercial paper			609,400		225,500
Proceeds from issuance of debt			—		500,000
Repayment of debt			(400,000)		(900,000)
Net proceeds from sale of common stock			67,741		111,008
Purchase of treasury stock			(1,322,357)		(1,135,260)
Repayment of principal portion of finance lease liabilities			(82,161)		(74,096)
Other, net			(3,180)		(4,927)
Net cash used in financing activities			(1,130,557)		(1,277,775)

Effect of exchange rate changes on cash			5,984		907

Net decrease in cash and cash equivalents			(18,074)		(29,547)
Cash and cash equivalents at beginning of period			271,803		298,172
Cash and cash equivalents at end of period		$	253,729	$	268,625


	Twelve Weeks Ended May 9, 2026
												Accumulated
	Common					Additional						Other
	Shares		Common			Paid-in			Retained			Comprehensive			Treasury
(in thousands)	Issued		Stock			Capital			Deficit			Loss			Stock			Total

Balance at February 14, 2026	16,578		$	166		$	1,919,290		$	(4,391,569)		$	(157,888)		$	(278,769)		$	(2,908,770)
Net income	—			—			—			641,491			—			—			641,491
Total other comprehensive income	—			—			—			—			20,839			—			20,839
Purchase of 164 shares of treasury stock	—			—			—			—			—			(586,306)			(586,306)
Issuance of common stock under stock options and stock purchase plans	14			—			16,278			—			—			—			16,278
Share-based compensation expense	—			—			31,916			—			—			—			31,916
Balance at May 9, 2026	16,592		$	166		$	1,967,484		$	(3,750,078)		$	(137,049)		$	(865,075)		$	(2,784,552)


	Twelve Weeks Ended May 10, 2025
												Accumulated
	Common					Additional						Other
	Shares		Common			Paid-in			Retained			Comprehensive			Treasury
(in thousands)	Issued		Stock			Capital			Deficit			Loss			Stock			Total

Balance at February 15, 2025	16,822		$	168		$	1,671,200		$	(5,421,243)		$	(407,589)		$	(300,309)		$	(4,457,773)
Net income	—			—			—			608,440			—			—			608,440
Total other comprehensive income	—			—			—			—			50,538			—			50,538
Purchase of 70 shares of treasury stock	—			—			—			—			—			(250,348)			(250,348)
Issuance of common stock under stock options and stock purchase plans	47			1			46,706			—			—			—			46,707
Share-based compensation expense	—			—			28,031			—			—			—			28,031
Balance at May 10, 2025	16,869		$	169		$	1,745,937		$	(4,812,803)		$	(357,051)		$	(550,657)		$	(3,974,405)


	Thirty-Six Weeks Ended May 9, 2026
												Accumulated
	Common					Additional						Other
	Shares		Common			Paid-in			Retained			Comprehensive			Treasury
(in thousands)	Issued		Stock			Capital			Deficit			Loss			Stock			Total

Balance at August 30, 2025	16,927		$	169		$	1,843,779		$	(3,975,852)		$	(285,010)		$	(997,399)		$	(3,414,313)
Net income	—			—			—			1,641,174			—			—			1,641,174
Total other comprehensive income	—			—			—			—			147,961			—			147,961
Retirement of treasury shares	(395)			(4)			(45,067)			(1,415,400)			—			1,460,471			—
Purchase of 356 shares of treasury stock	—			—			—			—			—			(1,328,147)			(1,328,147)
Issuance of common stock under stock options and stock purchase plans	60			1			67,740			—			—			—			67,741
Share-based compensation expense	—			—			101,032			—			—			—			101,032
Balance at May 9, 2026	16,592		$	166		$	1,967,484		$	(3,750,078)		$	(137,049)		$	(865,075)		$	(2,784,552)


	Thirty-Six Weeks Ended May 10, 2025
												Accumulated
	Common					Additional						Other
	Shares		Common			Paid-in			Retained			Comprehensive			Treasury
(in thousands)	Issued		Stock			Capital			Deficit			Loss			Stock			Total

Balance at August 31, 2024	17,451		$	175		$	1,621,553		$	(4,424,982)		$	(361,618)		$	(1,584,742)		$	(4,749,614)
Net income	—			—			—			1,661,297			—			—			1,661,297
Total other comprehensive income	—			—			—			—			4,567			—			4,567
Retirement of treasury shares	(710)			(7)			(69,877)			(2,049,118)			—			2,119,002			—
Purchase of 330 shares of treasury stock	—			—			—			—			—			(1,084,917)			(1,084,917)
Issuance of common stock under stock options and stock purchase plans	128			1			111,007			—			—			—			111,008
Share-based compensation expense	—			—			83,254			—			—			—			83,254
Balance at May 10, 2025	16,869		$	169		$	1,745,937		$	(4,812,803)		$	(357,051)		$	(550,657)		$	(3,974,405)


		May 9, 2026
(in thousands)		Level 1			Level 2			Level 3			Fair Value

Other current assets		$	13,641		$	3,150		$	—		$	16,791
Other long-term assets			63,029			61,090			—			124,119
		$	76,670		$	64,240		$	—		$	140,910


		August 30, 2025
(in thousands)		Level 1			Level 2			Level 3			Fair Value

Other current assets		$	13,667		$	4,994		$	—		$	18,661
Other long-term assets			52,278			53,201			—			105,479
		$	65,945		$	58,195		$	—		$	124,140


		May 9, 2026
		Amortized			Gross			Gross
		Cost			Unrealized			Unrealized			Fair
(in thousands)		Basis			Gains			Losses			Value

Corporate debt securities		$	28,991		$	137		$	(140)		$	28,988
Government bonds			66,841			244			(239)			66,846
Mortgage-backed securities			21,414			212			(51)			21,575
Asset-backed securities and other			23,497			33			(29)			23,501
		$	140,743		$	626		$	(459)		$	140,910


		August 30, 2025
		Amortized			Gross			Gross
		Cost			Unrealized			Unrealized			Fair
(in thousands)		Basis			Gains			Losses			Value

Corporate debt securities		$	23,441		$	270		$	(33)		$	23,678
Government bonds			63,053			910			(201)			63,762
Mortgage-backed securities			21,433			227			(81)			21,579
Asset-backed securities and other			15,043			81			(3)			15,121
		$	122,970		$	1,488		$	(318)		$	124,140


	May 9, 2026
	Amortized		Fair
(in thousands)	Cost Basis		Value

Due within one year	$	18,244	$	16,791
Due after one year through five years		77,460		79,052
Due after five years through ten years		29,778		29,677
Due after ten years		15,261		15,390
	$	140,743	$	140,910


		May 9,			August 30,
(in thousands)		2026			2025

3.125% Senior Notes due April 2026, effective interest rate 3.28%		$	—		$	400,000
5.050% Senior Notes due July 2026, effective interest rate 5.09%			450,000			450,000
3.750% Senior Notes due June 2027, effective interest rate 3.83%			600,000			600,000
4.500% Senior Notes due February 2028, effective interest rate 4.43%			450,000			450,000
6.250% Senior Notes due November 2028, effective interest rate 6.46%			500,000			500,000
3.750% Senior Notes due April 2029, effective interest rate 3.86%			450,000			450,000
5.100% Senior Notes due July 2029, effective interest rate 5.30%			600,000			600,000
4.000% Senior Notes due April 2030, effective interest rate 4.09%			750,000			750,000
5.125% Senior Notes due June 2030, effective interest rate 5.14%			500,000			500,000
1.650% Senior Notes due January 2031, effective interest rate 2.19%			600,000			600,000
4.750% Senior Notes due August 2032, effective interest rate 4.76%			750,000			750,000
4.750% Senior Notes due February 2033, effective interest rate 4.70%			550,000			550,000
5.200% Senior Notes due August 2033, effective interest rate 5.22%			300,000			300,000
6.550% Senior Notes due November 2033, effective interest rate 6.71%			500,000			500,000
5.400% Senior Notes due July 2034, effective interest rate 5.54%			700,000			700,000
Commercial paper, weighted average interest rate 3.96% at May 9, 2026, and 4.46% at August 30, 2025			1,358,000			748,600
Total debt before discounts and debt issuance costs			9,058,000			8,848,600
Less: Discounts and debt issuance costs			41,523			48,825
Long-term debt		$	9,016,477		$	8,799,775


					Net
		Foreign			Unrealized
		Currency			Gain (Loss)
(in thousands)		and Other⁽¹⁾			on Securities		Derivatives		Total

Balance at February 14, 2026		$	(151,327)		$	1,522	$	(8,083)	$	(157,888)
Other comprehensive income (loss) before reclassifications⁽²⁾			21,837			(1,393)		—		20,444
Amounts reclassified from Accumulated other comprehensive loss⁽²⁾			—			—		395		395
Balance at May 9, 2026		$	(129,490)		$	129	$	(7,688)	$	(137,049)


	Twelve Weeks Ended
						Constant Currency⁽¹⁾
		May 9, 2026		May 10, 2025		May 9, 2026		May 10, 2025
Domestic		4.1	%	5.0	%	4.1	%	5.0	%
International		16.6	%	(9.2)	%	1.6	%	8.1	%
Total Company		5.5	%	3.2	%	3.9	%	5.4	%


	A			B			A-B=C			D			C+D
	Fiscal Year			Thirty-Six			Sixteen			Thirty-Six			Trailing Four
	Ended			Weeks Ended			Weeks Ended			Weeks Ended			Quarters Ended
	August 30,			May 10,			August 30,			May 9,			May 9,
(in thousands, except percentage)	2025			2025			2025			2026			2026

Net income	$	2,498,247		$	1,661,297		$	836,950		$	1,641,174		$	2,478,124
Adjustments:
Interest expense, net		475,824			327,736			148,088			323,929			472,017
Rent expense⁽¹⁾		463,031			318,106			144,925			341,854			486,779
Tax effect⁽²⁾		(195,282)			(134,335)			(60,947)			(138,483)			(199,430)
Adjusted after-tax return	$	3,241,820		$	2,172,804		$	1,069,016		$	2,168,474		$	3,237,490

Average debt⁽³⁾													$	8,839,905
Average stockholders’ deficit⁽³⁾														(3,262,129)
Add: Rent x 6⁽¹⁾														2,920,674
Average finance lease liabilities⁽³⁾														413,733
Invested capital													$	8,912,183

Adjusted after-tax ROIC														36.3%


	Trailing Four Quarters Ended
(in thousands)	May 9, 2026		May 10, 2025

Total lease cost, per ASC 842	$	657,326	$	625,740
Less: Finance lease interest and amortization		(124,052)		(117,287)
Less: Variable operating lease components, related to insurance and common area maintenance		(46,495)		(43,114)
Rent expense	$	486,779	$	465,339

		Restated Articles of Incorporation of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended February 13, 1999.
3.1		Restated Articles of Incorporation of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q for the quarter ended February 13, 1999.

3.2		Ninth Amended and Restated By-Laws of AutoZone, Inc. Incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K dated April 1, 2025.
15.1*		Letter Regarding Unaudited Interim Financial Statements.

31.1*		Certification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*		Certification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**		Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2**		Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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104		The cover page for the Company’s Quarterly Report on Form 10-Q for the quarter ended May 9, 2026, has been formatted in Inline XBRL.


	AUTOZONE, INC.

	By:	/s/ JAMERE JACKSON
	Jamere Jackson
	Chief Financial Officer
	(Principal Financial Officer)


	By:	/s/ J. SCOTT MURPHY
	J. Scott Murphy
	Vice President, Controller (Principal Accounting Officer)

Dated: June 12, 2026


June 12, 2026

	/s/ PHILIP B. DANIELE, III
	Philip B. Daniele, III
	President and Chief Executive Officer
	(Principal Executive Officer)