Revenue In Line With Expectations

Auto parts and accessories retailer AutoZone (NYSE:AZO) met Wall Street’s revenue expectations in Q3 CY2025, but sales were flat year on year at $6.24 billion. Its GAAP profit of $48.71 per share was 3.9% below analysts’ consensus estimates.

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• Revenue: $6.24 billion vs analyst estimates of $6.24 billion (flat year on year, in line)

• EPS (GAAP): $48.71 vs analyst expectations of $50.68 (3.9% miss)

• Adjusted EBITDA: $1.39 billion vs analyst estimates of $1.44 billion (22.3% margin, 2.9% miss)

• Operating Margin: 19.2%, down from 20.9% in the same quarter last year

• Free Cash Flow Margin: 8.2%, down from 11.7% in the same quarter last year

• Locations: 7,657 at quarter end, up from 7,353 in the same quarter last year

• Same-Store Sales rose 5.1% year on year (0.7% in the same quarter last year)

• Market Capitalization: $68.94 billion

Aiming to be a one-stop shop for the DIY customer, AutoZone (NYSE:AZO) is an auto parts and accessories retailer that sells everything from car batteries to windshield wiper fluid to brake pads.

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $18.94 billion in revenue over the past 12 months, AutoZone is one of the larger companies in the consumer retail industry and benefits from a well-known brand that influences purchasing decisions. However, its scale is a double-edged sword because it’s harder to find incremental growth when you’ve penetrated most of the market. To accelerate sales, AutoZone likely needs to optimize its pricing or lean into international expansion.

As you can see below, AutoZone’s 8.1% annualized revenue growth over the last six years (we compare to 2019 to normalize for COVID-19 impacts) was mediocre, but to its credit, it opened new stores and increased sales at existing, established locations.

This quarter, AutoZone’s $6.24 billion of revenue was flat year on year and in line with Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 6.7% over the next 12 months, similar to its six-year rate. We still think its growth trajectory is attractive given its scale and indicates the market sees success for its products.

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