AutoZone shares see potential upside as commercial segment expansion and share buybacks offset a 0.6% decline in DIY retail sales during the fiscal fourth quarter.
AutoZone's Q4 EPS rose 15.1% with a $96 million tariff refund and TIKR's mid-case model points to a $4,609 target, implying a bullish long-term return despite modest FY27 same-store sales guidance.
AutoZone reported fiscal Q4 2026 earnings of $56.05 per share, a 15.1% year-over-year increase bolstered by a $96 million tariff refund. While DIY transaction volumes fell over 5%, strong commercial segment growth of 8.6% and aggressive share repurchases supported the bottom line. Management remains optimistic, citing an August domestic comp recovery to 2.1% as a sign of normalizing traffic.
Earnings were driven by an 8.6% increase in commercial sales, a $96 million tariff refund, and a 3.3% reduction in share count through aggressive buybacks.
CEO Philip Daniele views the 5% DIY transaction decline as an outlier and expects traffic to moderate toward normal rates, supported by early August data showing a 2.1% domestic comp increase.