AutoZone Q-Plus Year-to-Date: Revenue Higher, Quarterly Profit Strengthens While Cumulative Net Income Softens

Bottom line

AutoZone, Inc. delivered higher top-line performance on both windows it discloses in this 10-Q filed for period-ended-2026-05-09 (accession 0001104659-26-073525, CIK 0000866787, ticker AZO). Revenues moved higher in both the three-month reporting period and the eight month period relative to the corresponding prior-year windows, while the bottom line moved in opposing directions on the two windows.

- For the eight month period, Revenues of $13,743,677,000 USD compare with the prior-year eight month revenues of $12,695,991,000 USD. Operating Income (Loss) of $2,406,381,000 USD compares with the prior-year eight month operating income of $2,414,090,000 USD. Net Income (Loss) Attributable to Parent of $1,641,174,000 USD compares with the prior-year eight month net income of $1,661,297,000 USD. Earnings Per Share, Diluted of $96.69 per diluted share USD/SHARES compares with the prior-year eight month diluted EPS of $96.17 per diluted share USD/SHARES. - For the three-month reporting period, Revenues of $4,840,950,000 USD compare with the prior-year quarter revenues of $4,464,339,000 USD. Operating Income (Loss) of $923,756,000 USD compares with the prior-year quarter operating income of $866,174,000 USD. Net Income (Loss) Attributable to Parent of $641,491,000 USD compares with the prior-year quarter net income of $608,440,000 USD. Earnings Per Share, Diluted of $38.07 per diluted share USD/SHARES compares with the prior-year quarter diluted EPS of $35.36 per diluted share USD/SHARES.

Both windows remained profitable on every profitability line presented, so no loss-to-profit or profit-to-loss transition is reflected.

The filing itself does not provide management commentary attributing the year-over-year movements to any single cause. The filing evidence does not attribute this change to any single cause.

No peer or industry comparison is included in the filing evidence, so cross-company context cannot be drawn from this document alone. The filing evidence contains no peer or industry comparison.

The scope of this analysis is restricted to the headline income-statement lines listed above as captured by the unaudited Condensed Consolidated Financial Statements; the balance sheet, cash-flow statement, segment disclosures, fair-value hierarchy detail at Level 1, Level 2, and Level 3, and the Part II items covered by Item 1, Item 1A, Item 2, Item 3, Item 4, Item 5, and Item 6 are not analyzed in this section. Readers interested in interim filings where both windows also showed profit-to-profit comparisons can compare the pattern against Lizely Finance Earnings Analysis — ANI Pharmaceuticals Interim Filing: Profit-to-Profit Growth on Both Windows for context on similar dual-window profit-to-profit filings.

Financial performance

- Reported facts: For the three-month reporting period, Revenues were higher than the prior-year three-month comparative, while Earnings Per Share, Diluted, Net Income (Loss) Attributable to Parent, and Operating Income (Loss) all moved up versus the same prior-year quarter, in each case remaining in profit territory. The eight-month fiscal year-to-date picture shows Revenues higher than the prior-year eight-month comparative; Earnings Per Share, Diluted also moved up; Operating Income (Loss) and Net Income (Loss) Attributable to Parent, by contrast, registered lower than their prior-year eight-month counterparts while still landing in profit territory.

The split between the quarter and the year-to-date is therefore not uniform: the trailing three months show top-line growth flowing through to both operating income and net income, whereas the cumulative eight-month window shows top-line growth paired with softer profitability measures. - Accounting context: Within the filing, the Company discusses several pieces of accounting context relevant to interpreting these reported figures. Note B – Merchandise Inventories describes the Company's use of the last-in, first-out method for domestic inventories, with weighted average used for Mexico and Brazil inventories, and notes that changes to the LIFO credit reserve flow through cost of sales as a non-cash charge or benefit.

Note C – Variable Interest Entities describes the Company's tax credit fund investments, treated as VIEs under the cited guidance and accounted for using the equity method after the Company determined it was not the primary beneficiary. The fair value hierarchy described in the cited note prioritizes unadjusted quoted prices at the top tier, observable but non-quoted inputs at the middle tier, and unobservable Company assumptions at the lower tier, with deferred compensation plan assets recurring at the top tier. Note E – Marketable Debt Securities describes unrealized gains and losses on marketable debt securities flowing through Accumulated other comprehensive loss, with credit-related losses recognized in net income.

- Guidance and expectations: The narrative also discusses pending accounting standards updates that the Company is evaluating. Adoption is planned with the Company's next annual filing, and management's stated view is that these new disclosure requirements are not currently expected to have a material impact on the financial statements; the Company is continuing to evaluate that view. No quantitative forward earnings or revenue guidance is disclosed in the cited narrative.

- Analyst inference and counter-evidence: The filing evidence does not attribute this change to any single cause.. The narrative notes that the LIFO credit reserve movement is non-cash but does not attribute the year-to-date softness in operating income or net income to any single line item or driver. - Peer comparison and unknowns: The filing evidence contains no peer or industry comparison..

No peer or industry comparison is contained in the filing evidence for this section. - Cross-reference: Readers comparing similar profit-to-profit patterns across interim windows may find context in Lizely Finance Earnings Analysis — UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows.

Operating drivers and segments

- Revenue for the three-month reporting period was $4,840,950,000, a profit-figure movement higher than the prior-year comparative $4,464,339,000, leaving the top line at a higher level in the most recent quarter. - Revenue for the eight-month period was $13,743,677,000, likewise higher than the prior-year comparative $12,695,991,000, so the year-to-date window also advanced. - Operating Income for the three-month reporting period was $923,756,000, higher than the prior-year comparative $866,174,000, indicating a profit-to-profit improvement on the quarter window. - Operating Income for the eight-month period was $2,406,381,000, lower than the prior-year comparative $2,414,090,000, marking a profit-to-profit softening on the year-to-date window. - The pattern is mixed: revenue higher on both windows while operating profit moved in opposite directions by horizon, so the segment-level margin pressure is visible only on the eight-month basis.

- Management frames the interim results as consistent with a fair presentation under U.S. GAAP for interim financial information, prepared per the requirements of 10-Q and Regulation S-X, with all normal recurring accruals included; results for the twelve and thirty-six weeks are noted as not necessarily indicative of the full fiscal year outcome. - Management points to two pending FASB updates — the Income Taxes disclosure ASU and a separate ASU requiring disaggregation of certain costs and expenses — and states it is evaluating the disclosure impact, with adoption planned in a later fiscal annual filing; the Company does not currently expect a material impact from the tax-disclosure update. - Inventory accounting is described as LIFO for domestic operations and weighted average for Mexico and Brazil, with changes to the LIFO credit reserve flowing through cost of sales as a non-cash item. - Variable interest entities are limited to tax-credit funds promoting renewable energy, and management concluded the Company is not the primary beneficiary, accounting for the investments under the equity method; fair-value measurement follows the three-tier hierarchy set out in Level 1, Level 2, and Level 3. - For a cross-issuer view of how peers framed similar interim results, see the Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year Filing write-up. - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison.

Cash flow and capital

- Operating cash generation: Net Cash Provided by (Used in) Operating Activities is reported at $2,119,587,000 USD for the period covered by the eight-month period ended May 9, 2026, compared with $2,164,582,000 USD for the eight-month period ended May 10, 2025. The authorized direction for this period-over-period comparison is decrease, with both windows showing a positive figure, so the filing records a smaller positive operating cash inflow than the prior-year eight-month window. Any causal explanation is not in the quoted evidence; The filing evidence does not attribute this change to any single cause..

- Investing activity: Net Cash Provided by (Used in) Investing Activities is reported at -$1,013,088,000 USD for the eight-month period ended May 9, 2026, versus -$917,261,000 USD for the eight-month period ended May 10, 2025. The authorized direction is decrease and both windows are negative, so the cash outflow from investing was larger in the current eight-month window than in the prior-year comparable. Within this section of the cash flow statement, Payments to Acquire Property, Plant, and Equipment are reported at $997,486,000 USD for the eight-month period ended May 9, 2026 against $885,623,000 USD for the eight-month period ended May 10, 2025, with the authorized direction being increase and both windows positive, meaning property, plant, and equipment outlays ran higher year over year.

The filing evidence does not attribute this change to any single cause.. - Financing activity: Net Cash Provided by (Used in) Financing Activities is reported at -$1,130,557,000 USD for the eight-month period ended May 9, 2026, versus -$1,277,775,000 USD for the eight-month period ended May 10, 2025. The authorized direction is increase and both windows are negative, so the financing outflow was smaller in the current eight-month window than in the prior-year comparable.

The largest line within financing is Payments for Repurchase of Common Stock at $1,322,357,000 USD for the eight-month period ended May 9, 2026 versus $1,135,260,000 USD for the eight-month period ended May 10, 2025, with the authorized direction being increase and both windows positive; share repurchase cash outlays were therefore higher year over year, consistent with Item 2 covering unregistered sales of equity securities and use of proceeds. The filing evidence does not attribute this change to any single cause.

for any driver explanation. - Balance sheet snapshot at the balance sheet date of May 9, 2026: Cash and Cash Equivalents, at Carrying Value is reported at $253,729,000 USD; Accounts Payable, Current is reported at $8,401,277,000 USD; and Long-term Debt, Excluding Current Maturities is reported at $9,016,477,000 USD. The filing notes that the carrying amounts of cash and cash equivalents, accounts receivable, other current assets and accounts payable approximate fair value because of their short maturities, with debt fair values discussed in the cited financing note referenced as Item 6 in the surrounding index.

Supplier Financing Programs under the cited note allow inventory suppliers, at their sole discretion, to finance the Company's obligations with third-party financial institutions, while the Company's obligations to suppliers, including amounts and dates due, are not impacted by suppliers' participation choice. - Counter-evidence and unknowns: No segment-level cash flow or balance sheet detail is disclosed in the quoted evidence, so The filing evidence does not disclose segment-level detail for this dimension. applies.

The filing evidence contains no peer or industry comparison, so The filing evidence contains no peer or industry comparison.. Reader-facing analysts can cross-check the cash flow direction pattern with Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in Filing for a contrasting operating cash direction in another interim filing.

Peer and historical context

- Across both the three-month reporting period and the eight-month year-to-date window, AUTOZONE INC's top-line performance continues a multi-period pattern of higher revenue when set against the prior-year comparative periods, with $4,840,950,000 above $4,464,339,000 and $13,743,677,000 above $12,695,991,000. - Profitability shows a mixed but still constructive picture: $923,756,000 moved higher than $866,174,000 on the quarter, while $2,406,381,000 was lower than $2,414,090,000 on the year-to-date basis, even though both windows remain in profit. - $641,491,000 exceeded $608,440,000, but $1,641,174,000 came in below $1,661,297,000, reinforcing the read that the most recent quarter was the brighter contributor while the cumulative eight-month stretch lagged the prior year. - Operating cash generation softened on a year-to-date basis, with $2,119,587,000 below $2,164,582,000, indicating a mild cash-conversion step-down alongside the softer year-to-date earnings line.

- The single quarter is unambiguously stronger on every disclosed profitability line ($923,756,000 higher, $641,491,000 higher) and on the top line ($4,840,950,000 higher), so the cumulative-year softness should not be read as a uniform deterioration in the latest quarter. - Because $2,406,381,000 and $1,641,174,000 remain in profit against profit comparisons, the year-to-date weakness is a margin/compression story rather than a swing into a loss. - The fair-value hierarchy disclosures at Level 1, Level 2 and Level 3 are unchanged in structure, and the marketable-debt-securities note indicates no material realized gains or losses were booked during the twelve and thirty-six week periods, which limits the case for one-off mark-to-market swings explaining the operating-income shift. - The filing evidence does not attribute this change to any single cause.

Historical context for AZO is necessarily limited to the issuer's own prior-year windows within this filing, since no peer or industry benchmarks are presented alongside 0000866787 under accession 0001104659-26-073525. The frame therefore relies on sequential year-over-year contrasts across the three months ended May 9, 2026 versus the three months ended May 10, 2025 and the eight-month period ended May 9, 2026 versus the eight-month period ended May 10, 2025, as defined for period-ended-2026-05-09 on form 10-Q.

Read in that light, the eight-month trend shows revenue growth paired with softer operating income and net income, while the latest three-month period shows all three moving higher — a pattern consistent with an inflection in the most recent quarter. Operating cash flow is the one line that is softer on the year-to-date view without a compensating improvement in the quarter-level disclosure, which makes it the cleanest negative signal in the comparison set. Readers weighing comparable interim readings can cross-check the structure of these profit-to-profit transitions against the parallel treatment in the Lizely Finance Earnings Analysis — UFP TECHNOLOGIES INC Interim Filing: Profit-to-Profit Growth on Both Windows piece for shape, while recognising that The filing evidence contains no peer or industry comparison. for the auto-parts retailer set itself.

Scenario analysis

- In the base case, the picture assembled from 10-Q for period-ended-2026-05-09 under accession 0001104659-26-073525 is a quietly constructive one for AUTOZONE INC. Revenues were higher year-over-year on both reported windows, with $13,743,677,000 running above $12,695,991,000 for the eight-month period ended May 9, 2026 versus the eight-month period ended May 10, 2025, and $4,840,950,000 running above $4,464,339,000 for the three months ended May 9, 2026 versus the three months ended May 10, 2025. Net Income (Loss) Attributable to Parent, however, split: it was higher for the three-month reading $641,491,000 versus $608,440,000 but lower on the eight-month cumulative $1,641,174,000 versus $1,661,297,000.

The base read is therefore top-line momentum paired with a softer cumulative bottom line, which is a familiar late-cycle auto-parts pattern of growing receipts into a narrower profit pool. - The upside case requires the operating leverage in the quarter to keep rolling into the remaining weeks of the fiscal year. Quarterly Net Income (Loss) Attributable to Parent was higher year-over-year on a profit-to-profit transition, suggesting that the cost base started to translate revenue into earnings more efficiently late in the reporting calendar.

If that margin tone persists, the cumulative gap on the eight-month net income line narrows without needing a revenue acceleration, because a flatter revenue base combined with a steadier expense run-rate closes the dollar spread to the prior year on its own. The filing evidence does not attribute this change to any single cause. The supplier financing arrangements referenced in the cited note and the working-capital flexibility provided by the Revolving Credit Agreement — whose maximum borrowing capacity can, at the Company's option and subject to lenders' approval, be stepped up — give management meaningful levers to keep inventory turns and payables timing supportive of that margin recovery.

- The downside case is the mirror of the upside and is tied directly to the cumulative rather than the quarterly read. Revenues were higher on the eight-month window, yet Net Income (Loss) Attributable to Parent was lower for the same eight-month window, so any further compression in gross margin or in operating cost absorption on roughly flat or modestly higher sales pushes the cumulative net income figure further below its prior-year comparative. The litigation posture described in the cited note is described by management as not currently expected to be material, but the catalogue of matters — wage and hour, employment practices, product liability, privacy and cybersecurity, environmental, intellectual property and regulatory — is broad enough that an adverse development on any single line could move the needle.

The filing evidence does not attribute this change to any single cause. Stand-by letters of credit activity, the multi-notch commercial paper and Senior Notes balances classified as long-term debt pending refinancing through the Revolving Credit Agreement, and the continued capitalisation of cloud-based ERP implementation costs (recorded partly within Other current assets and partly within Other long-term assets) are all liquidity and expense items that a cautious reader will track quarter to quarter. - Readers comparing this two-window pattern to other interim filings can cross-check the profit-to-profit framing against the broader Lizely Finance earnings series, including Lizely Finance Earnings Analysis — ANI Pharmaceuticals Interim Filing: Profit-to-Profit Growth on Both Windows, which illustrates a smoother top-line-to-bottom-line translation than the mixed-window read shown here.

Risks and what to watch

- The interim filing for AUTOZONE INC (AZO) under 10-Q for period-ended-2026-05-09 presents a top-line picture that is directionally constructive: Revenues were higher in both the three-month window ($4,840,950,000 versus $4,464,339,000) and the eight-month window ($13,743,677,000 versus $12,695,991,000). Reported facts - That revenue strength, however, does not flow through cleanly to every profitability line. Net Income (Loss) Attributable to Parent was lower in the eight-month comparison ($1,641,174,000 versus $1,661,297,000) even though it was higher in the three-month comparison ($641,491,000 versus $608,440,000).

The eight-month decline alongside a quarterly gain is a meaningful counter-signal that should temper any read of the headline revenue beat. Reported facts - Management's own discussion flags several forward-looking risk surfaces: supplier participation in third-party financing programs is voluntary and does not change the Company's payment obligations (the filing's own framing); the Company is exposed to a broad litigation slate spanning wage and hour, termination, employment practices, product liability, privacy and cybersecurity, environmental, intellectual property, and regulatory matters, with management's stated view that no individual or aggregate item is currently expected to be material; and the Revolving Credit Agreement has an expandable cap (a larger ceiling available at the issuer's option subject to lender approval) and a fixed termination date, which together govern short-term refinancing flexibility.

Management explanations - Refinancing posture is a live item to monitor: commercial paper borrowings and a series of Senior Notes were reclassified as long-term debt on the Condensed Consolidated Balance Sheets based on management's stated ability and intent to refinance through available revolver capacity, and the Senior Notes contain an acceleration clause tied to repayment events. Analyst inference - The cited note also discloses that stand-by letters of credit are primarily renewed on an annual basis to cover deductible payments to casualty insurance carriers, and that the issuer has canceled, issued and modified these instruments since fiscal year end, so the L/C footprint is not static and is worth re-checking next period.

Reported facts - Material unknowns and items the filing evidence does not address: segment-level revenue mix, gross margin movement, and the specific drivers behind the eight-month net income decline are not disclosed at the level of this interim release The filing evidence does not disclose segment-level detail for this dimension. The filing evidence does not attribute this change to any single cause.. No peer or industry comparison is provided in the filing The filing evidence contains no peer or industry comparison..

- Metrics to watch next period, grounded only in what this filing puts on the table: (i) whether the quarterly revenue and net income gains extend into the next three-month print; (ii) whether the eight-month net income trajectory reverses, since the divergence between the quarterly and eight-month windows is the most actionable red flag in the current release; (iii) revolver utilization, commercial paper balances, and any draw on the expanded cap referenced in the cited note, given the long-term-debt reclassification assumption; (iv) renewal activity in stand-by letters of credit and any change in the underlying casualty insurance deductibles they secure; and (v) any new disclosure on the litigation categories listed, since management's current "not material" view is a snapshot rather than a guarantee.

Readers tracking interim auto-parts retailers can compare the framing against Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in period-ended Filing to contrast a clean profit-to-profit quarter-over-quarter narrative with the divergent quarterly-versus-eight-month pattern shown here. Analyst inference