AutoZone, Inc. Q3 2026 Earnings Report – Investor Analysis
Key Highlights from the Report
- Quarter End: May 9, 2026
- Net Income: \$641.5 million for Q3 2026
- Gross Profit: \$7.1 billion for the period September 1, 2025 to May 9, 2026
- Net Sales: Not directly specified for Q3, but gross profit and net income figures provided
- Weighted Average Shares Outstanding: 16,468 thousand for Q3 2026
- Total Assets: \$20.9 billion as of May 9, 2026
- Total Stockholders’ Deficit: (\$2.78 billion) as of May 9, 2026
- Common Stock Outstanding: 16,325,355 shares as of June 5, 2026
- Trading Symbol: AZO (Listed on New York Stock Exchange)
- Company Status: Large Accelerated Filer; Not a shell company; Not an emerging growth company
Detailed Financial Review
Condensed Consolidated Balance Sheet
- Current Assets: \$8.93 billion
- Property, Plant and Equipment (Net): Figure not explicitly stated but included in total assets
- Other Noncurrent Liabilities: \$887 million
- Stockholders’ Deficit: (\$2.78 billion) – This is a continued negative equity position, reflecting the company’s aggressive share repurchase program and retained deficit.
- Commitments and Contingencies: No explicit dollar amount disclosed, but referenced in the balance sheet.
Condensed Statements of Income
- Net Income for Q3 2026: \$641.5 million
- Net Income for Q3 2025 (Prior Year): \$608.4 million (for comparison)
- Full Period Net Income (Sep 1, 2025 – May 9, 2026): \$1.64 billion
- Gross Profit for the period: \$7.1 billion (up from \$6.75 billion in prior period)
- Interest Expense (Q3 2026): \$110.5 million
- Interest Expense (Sep 1, 2025 – May 9, 2026): \$323.9 million
- Income Tax Expense (Q3 2026): \$146.4 million
Shareholder Information
- Shares Outstanding: 16,325,355 as of June 5, 2026
- Authorized Shares: 200,000,000
- Issued Shares: 16,592,000 as of May 9, 2026
- Treasury Stock: (\$865 million) as of May 9, 2026 (reflects ongoing buybacks)
- Trading Symbol: AZO
- Exchange: New York Stock Exchange
Other Notable Corporate Disclosures
- No Preferred Stock Issued: Although authorized, none issued.
- Retained Deficit: (\$3.75 billion) – This is a substantial retained deficit, indicative of the company’s share repurchase activity outpacing profits.
- Accumulated Other Comprehensive Loss: (\$137 million)
- Commitments and Contingencies: Referenced but not quantified; investors should monitor for future legal or regulatory developments.
- Legal Proceedings: Listed as a section in the report but no specific disclosure here; further details may be in the full filing.
- Risk Factors: Section exists, but not detailed here; investors should review for potential material risks.
Potential Price-Sensitive Information for Shareholders
- Continued Share Repurchases: The treasury stock line item and continued reduction in shares outstanding indicate AutoZone is actively buying back shares, which could provide upward pressure on share price.
- Strong Earnings and Gross Profit Growth: Year-over-year increases in net income and gross profit could be interpreted positively by the market.
- Negative Equity (“Stockholders’ Deficit”): The company maintains a significant negative equity position. While this is due to buybacks, investors should be aware of any potential implications for credit ratings or financial flexibility.
- No Preferred Shares Issued: No dilution from preferred shares, which could be seen as positive for common shareholders.
- Legal and Risk Factors: While not detailed here, those sections exist in the full report and may contain information material to share value.
Summary for Investors
AutoZone continues its trend of strong earnings, robust gross profit growth, and aggressive share repurchases, resulting in fewer shares outstanding and a substantial negative equity position. The company’s financial performance remains resilient, with year-over-year improvement in net income and gross profit.
Investors should monitor AutoZone’s commitments and contingencies, legal proceedings, and risk factors, as these could materially affect future results. The ongoing share buyback program is likely to continue influencing the share price positively, but the negative equity position should be watched for any credit or financial implications.
No new preferred shares, no shell company status, and continued filing compliance indicate stable governance and shareholder structure.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investors should review the full SEC filing and consult with their financial advisor before making any investment decisions. Past performance is not indicative of future results.
