AutoZone (AZO) Stock Forecast & Price Target

AutoZone has demonstrated robust growth, with a 5.9% increase in transaction count on a same-store basis, indicating strong market share gains and successful acquisition of new business. The domestic Commercial/DIFM segment posted notable same-store sales growth of over 12%, showcasing the company’s ability to capture significant share in its sector, while the average ticket size rose by 6.1%, driven by same-SKU inflation. Internationally, the company also experienced a positive trajectory, with same-store sales increasing by 3.7% in constant currency, which further enhanced reported results to 11.2% when considering favorable foreign exchange conditions.

AutoZone's financial outlook is negatively impacted by a decrease in its FY27 EPS forecast to $185.91, reflecting only a 25% increase from the previous year, as augmented SG&A growth offsets anticipated same-store sales (SSS) growth improvements. The company is experiencing a decline in DIY customer traffic, evidenced by a 3.4% decrease during a quarter characterized by weaker weather patterns and unfavorable comparisons to previous hurricane-boosted sales. Additionally, the reduction in the FY26 EPS forecast to $148.42, combined with slower SG&A growth and mixed quarterly results, underscores ongoing challenges that could hinder future profitability and growth.