How does AutoZone (AZO) make money?

AutoZone (AZO) generates revenue primarily from Auto Parts Locations, which accounted for 100% of total revenue in TTM through Q2 2026. The company reported $19.99B in revenue and converted 12.4% of it into net profit, equivalent to roughly $2.48B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of AutoZone (AZO)?

AutoZone (AZO) reported a gross profit margin of 51.8% in TTM through Q2 2026, equivalent to $10.34B in gross profit on $19.99B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of AutoZone (AZO)?

AutoZone (AZO) reported an operating profit margin of 18% in TTM through Q2 2026, equivalent to $3.60B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of AutoZone (AZO)?

AutoZone (AZO) reported a net profit margin of 12.4% in TTM through Q2 2026, equivalent to $2.48B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is AutoZone (AZO) profitable?

Yes. AutoZone (AZO) reported $2.48B in net income for TTM through Q2 2026, with a net profit margin of 12.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does AutoZone (AZO) spend on capital expenditures?

AutoZone (AZO) spent $1.09B on capital expenditures (CapEx) during TTM through Q2 2026, roughly 5.5% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does AutoZone (AZO) generate?

AutoZone (AZO) generated $1.18B in free cash flow during TTM through Q2 2026, a free-cash-flow margin of 5.9%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of AutoZone (AZO)?

AutoZone (AZO) had an effective tax rate of 20.8% in TTM through Q2 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

How AutoZone Makes Money: 2026 Visual Revenue Map

AutoZone (AZO) Income Statement Flow — TTM through Q2 2026

Calculated from the four most recent reported quarters, ending May 9, 2026 (reported June 12, 2026).

AutoZone discloses geographic revenue only in annual filings. to view the full breakdown.

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AutoZone (AZO) Key Financials

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Overview

AZO Overview

Counters

Revenue Counter$633.76/s
Earnings Counter$78.58/s
Economic Scale> Niger

Income Statement

How It Makes Money
Income Statement Waterfall
Profit Bridge

Cash Flow

Cash Flow Waterfall
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Capital Return

Buybacks2.06% TTM
Stock Split History2 splits

Forecast & Valuation

Price Target Scenarios
Estimates$35.99 EPS
Fair Value
What If Invested
Stock Seasonality
Daily Price Character50.4% win rate