**AutoZone, Inc.** reported strong growth in its third-quarter fiscal 2026 earnings, with total sales rising 8.4%, marking the highest increase in over three years. Domestic same-store sales increased by 4.1%, while commercial sales advanced by 10.4%. The company opened 82 stores globally during the quarter and anticipates around 365 openings for the year, compared to 305 last year. CEO Philip Daniele indicated that commercial sales now make up nearly 34% of domestic auto parts sales, highlighting significant potential for growth.
Despite a slowdown in sales towards the end of the quarter—attributed to unseasonably cool weather impacting demand for certain products—AutoZone maintains confidence in achieving consistent seasonal demand. CFO Jamere Jackson noted that gross margin fell slightly to 52.2% due to a $20 million noncash LIFO charge, although underlying merchandise margins are improving and supply chain productivity helps mitigate pressure.
For the quarter, AutoZone reported an earnings per share (EPS) of $38.07, exceeding the Zacks Consensus Estimate of $36.18, while revenues of $4.84 billion fell slightly below expectations of $4.86 billion. The company remains focused on strategic growth through capital investments totaling nearly $1.6 billion this year, aimed primarily at expanding store locations and enhancing commercial operations.
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