Episode Details

AutoZone, Inc. (AZO) Q4 FY2026 — The reference is the September 21 close of $2,803.25, before this earnings release; no verified post-print move is asserted. AutoZone’s gross margin rebounded, but tariff refunds and the comparative LIFO benefit explain more than the entire improvement. Commercial growth remains strong while inventory and investment absorb cash. THE CALL: HOLD (3/5, MODERATE) — base-case value ~$2800.00 vs ~$2803.25 at the September 21 pre-release close. KEY METRICS: - Q4 revenue $6,594.879M, up 5.64% - GAAP diluted EPS $56.05 versus $48.71 - Gross margin +182 bp includes tariff +145 bp and LIFO comparison +105 bp - FY2026 operating cash $3,302.846M less capex $1,496.255M = FCF $1,806.591M - Inventory grew 10.1%; domestic same-store sales grew 1.6% What to watch: Domestic same-store sales above 3%, commercial weekly sales per program above $19K, and inventory growth converging toward sales; review by December 31, 2026. Full research packet: https://chargedalpha.com/research/azo-q4-fy2026 Also on YouTube: @ChargedAlpha DISCLAIMER: For informational and educational purposes only. Not financial advice. Do your own research before any investment decision.