Key Stats for AutoZone Stock
- Stock Movement (Recent): +2.19%
- Current Price: $3,637.17
- Street Target Price: $4,209.04
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What Happened?
AutoZone, Inc. (AZO) is navigating near-term market friction with underlying strength, as shares traded up 2.19% to $3,637.17 following a highly complex fiscal second-quarter 2026 earnings release.
The auto parts retail giant delivered actual revenue of $4,274.10 million in the second quarter, missing analyst estimates of $4,307.19 million.
Profitability was heavily impacted by accounting adjustments and severe weather. AutoZone reported an actual Adjusted EPS of $27.63, narrowly beating the Street estimate of $27.17.
During the earnings call, CEO Phil Daniele was highly transparent regarding the operational headwinds. He noted that total sales grew 8.1%, but earnings per share decreased 2.3% year-over-year.
Daniele stated verbatim: “Similarly, to our experience in the first quarter, our gross margin, operating profit and EPS were negatively impacted by a noncash $59 million LIFO charge, which had a material impact on our margins and EPS. Excluding this LIFO charge, our EPS would have been up 7.1% versus last year’s Q2.”
Beyond the accounting charge, the company was heavily impacted by severe winter storms in late January and early February.
The weather forced widespread closures of both AutoZone stores and its commercial mechanic customers.
During weeks 10 and 11 of the quarter, domestic commercial sales grew just 1%, compared to over 12% growth in the other 10 weeks of the quarter.
Despite these temporary setbacks, AutoZone continues its aggressive expansion, opening 64 stores globally in the quarter and remaining on track to open up to 360 stores for the full year.
Furthermore, the company repurchased $311 million of its own stock in the quarter.
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Is AutoZone Undervalued Today?
Aggregated analyst data indicate that the market is heavily undervaluing the long-term compounding power of AutoZone’s Mega-Hub strategy and the massive cash flow generated by its commercial business.
The consensus Street target price of $4,209.04 represents an attractive 15.7% potential return from the current $3,637.17 baseline.
While navigating the complexities of international tariffs (which drove the LIFO charges) and unpredictable weather patterns, the operational reality shows a company structurally transforming its unit economics to dominate both the DIY and Commercial (DIFM) auto parts markets.
CFO Jamere Jackson explained exactly how the company’s commercial acceleration initiatives are gaining market share.
Jackson stated verbatim: “Mega-Hub stores remain a key component of our current and future commercial growth. We opened 5 Mega-Hubs and finished the quarter with 142 Mega-Hub stores… As a reminder, our Mega-Hubs typically carry over 100,000 SKUs and drive a tremendous sales lift inside the store box as well as serve as an expanded assortment source for other stores.”
Read the full AutoZone Transcript on TIKR to see the 2026 expansion roadmap >>>
Valuation Deep Dive
The TIKR Analyst Breakdown identifies AutoZone as an undisputed retail leader successfully leveraging massive supply chain investments to aggressively capture market share in the highly fragmented commercial auto parts sector.
- Street Target Price: $4,209.04
- Current Price: $3,637.17
- Target Return: 15.7%
The Hub and Spoke Engine: AutoZone is aggressively positioning itself to overcome industry-wide supply chain constraints. Management highlighted that they now have their commercial program in 94% of their domestic stores. By deploying up to 300 Mega-Hubs at full build-out, AutoZone will place unprecedented inventory density directly in local markets, ensuring mechanics get the parts they need faster than any competitor can deliver.
Explosive Scale and Free Cash Flow: The commercial engine is operating at absolute peak efficiency. Despite the heavy CapEx investment required to build out its Mega-Hub network (nearly $1.6 billion projected for this year), AutoZone generated $645 million in free cash flow year-to-date. Because extreme winter weather historically drives severe vehicle wear and tear (creating deferred maintenance), management fully expects a massive tailwind of commercial and DIY repair demand as the spring and summer driving seasons begin.
Conclusion: A revitalized retail giant is successfully leveraging its massive distribution network and relentless share repurchase program to accelerate profitability. AutoZone offers a highly defensive, steady path to long-term appreciation. The path to the $4,209.04 target is paved by the successful rollout of new Mega-Hubs, the expected snap-back in commercial transactions following the winter freeze, and the sustained resilience of the DIY market driven by an aging U.S. car park.
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Should You Invest in AutoZone?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up AutoZone, and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
