Memphis, Tennessee, December 10, 2025
AutoZone, Inc., the prominent automotive parts retailer based in Memphis, has announced a significant capital investment of $1.6 billion for fiscal years 2026 and 2027. This strategic move aims to accelerate store growth and improve the company’s distribution network. In the first quarter of fiscal 2026, AutoZone reported an 8.2% rise in total sales, reinforcing its commitment to growth despite a slight decline in earnings per share. The investment also aligns with a recent authorization of $1.5 billion for its share repurchase program.
Memphis-Based AutoZone Announces $1.6 Billion Capital Investment
Memphis, Tennessee โ AutoZone, Inc., the leading retailer and distributor of automotive replacement parts and accessories in the Americas, has unveiled plans to invest $1.6 billion in capital expenditures for both fiscal years 2026 and 2027. This substantial investment aims to accelerate the company’s store growth and enhance its distribution network.
Strategic Expansion and Financial Performance
In the first quarter of fiscal year 2026, AutoZone reported a robust 8.2% increase in total sales, reaching $4.6 billion. Despite this growth, earnings per share (EPS) experienced a 4.6% decline, primarily due to a $98 million noncash Last-In, First-Out (LIFO) charge. Excluding this charge, EPS would have risen by 8.9%. The company’s domestic same-store sales grew by 4.8%, with do-it-yourself (DIY) sales up 1.5% and commercial sales surging by 14.5%. Internationally, same-store sales increased by 3.7%. Additionally, AutoZone opened 53 new stores globally during the quarter, underscoring its aggressive expansion strategy.
Capital Allocation and Share Repurchase Program
AutoZone’s disciplined capital allocation approach has enabled the company to generate strong free cash flow, invest in growth initiatives, and return value to shareholders. In October 2025, the Board of Directors authorized an additional $1.5 billion for the company’s ongoing share repurchase program, bringing the total authorization to $40.7 billion since its inception in 1998.
Company Overview
Founded in 1979 and headquartered in Memphis, Tennessee, AutoZone operates over 7,600 stores across the United States, Mexico, and Brazil. The company is committed to providing high-quality automotive parts and accessories, serving both DIY customers and professional repair shops.
Financial Outlook
Looking ahead, AutoZone remains optimistic about its growth prospects, focusing on enhancing customer service and expanding market share. The company is committed to maintaining its disciplined approach to increasing earnings and operating cash flow while delivering strong shareholder value.
Stock Performance
As of December 10, 2025, AutoZone’s stock (NYSE: AZO) is trading at $3,496.77, reflecting a 7.11% decrease from the previous close. The company’s market capitalization stands at approximately $58.3 billion.
Frequently Asked Questions (FAQ)
What is AutoZone’s recent capital investment plan?
AutoZone plans to invest $1.6 billion in capital expenditures for both fiscal years 2026 and 2027 to accelerate store growth and enhance its distribution network.
How did AutoZone perform in the first quarter of fiscal year 2026?
In Q1 2026, AutoZone reported an 8.2% increase in total sales, reaching $4.6 billion. Domestic same-store sales grew by 4.8%, with DIY sales up 1.5% and commercial sales surging by 14.5%. International same-store sales increased by 3.7%. The company also opened 53 new stores globally during the quarter.
What is AutoZone’s share repurchase program?
AutoZone’s share repurchase program allows the company to buy back its own shares from the open market, returning value to shareholders. In October 2025, the Board of Directors authorized an additional $1.5 billion for this program, bringing the total authorization to $40.7 billion since its inception in 1998.
Where is AutoZone headquartered?
AutoZone is headquartered in Memphis, Tennessee.
What is AutoZone’s stock performance?
As of December 10, 2025, AutoZone’s stock (NYSE: AZO) is trading at $3,496.77, reflecting a 7.11% decrease from the previous close. The company’s market capitalization stands at approximately $58.3 billion.
Key Features of AutoZone’s Recent Developments
| Feature | Details |
|---|---|
| Capital Investment | $1.6 billion planned for fiscal years 2026 and 2027 to accelerate store growth and enhance distribution network. |
| First Quarter Performance | 8.2% increase in total sales to $4.6 billion; 53 new stores opened globally. |
| Share Repurchase Program | Additional $1.5 billion authorized, totaling $40.7 billion since 1998. |
| Headquarters | Memphis, Tennessee. |
| Stock Performance | Trading at $3,496.77 as of December 10, 2025, with a market capitalization of approximately $58.3 billion. |
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