Executive Summary
AutoZone’s QQ3 2025 results show solid top-line momentum and sustained margin discipline, underscored by a revenue increase of 5.4% year over year to $4.464 billion and a gross margin of 52.7%. Net income rose sequentially on a QoQ basis, delivering $608.4 million and EPS of $36.33 (diluted $35.36). EBITDA stood at $1.01 billion with an EBITDA margin of 22.6%, while operating income was $866.2 million (operating margin ~19.4%). The company generated operating cash flow of $769.0 million and free cash flow of $423.1 million, supporting a substantial share repurchase program ($268.8 million) alongside a moderate equity issuance ($46.7 million).\n\nHowever, the quarter also highlights leverage and balance sheet considerations. Net debt stood at approximately $11.92 billion with cash and cash equivalents of about $268.6 million, resulting in a low liquidity cushion relative to the scale of debt. Total liabilities ($22.60 billion) exceeded total assets ($18.62 billion), yielding negative reported stockholders’ equity of about $(3.97) billion. These dynamics underline a disciplined cash-flow generation story but warrant close monitoring of leverage, balance sheet resilience, and debt maturity risk. The backdrop remains a favorable secular tailwind for automotive aftermarket parts, supporting a constructive but cautious investment stance given the balance sheet position and ongoing capital allocation choices.
Key Performance Indicators
Key Insights
Revenue: $4.464B, YoY +5.4%, QoQ +12.96% | Gross Profit: $2.353B, YoY +3.88% | Gross Margin: 52.72% | Operating Income: $866.174M, YoY -3.78%, QoQ +22.55% | Operating Margin: 19.40% | Net Income: $608.44M, YoY -6.64%, QoQ +24.70% | Net Margin: 13.63% | EBITDA: $1.01087B, EBITDA Margin: 22.64% | EPS (GAAP): $36.33, Diluted EPS: $35.36 | Shares (avg): ~16.746M | Operating Cash Flow: $769.03M | Capex: $345.89M | Free Cash Flow: $423.14M | Net Debt: ~$11.92B | Cash: ~$0.269B | Long-Term Debt: $11.87...
Financial Highlights
Revenue: $4.464B, YoY +5.4%, QoQ +12.96% | Gross Profit: $2.353B, YoY +3.88% | Gross Margin: 52.72% | Operating Income: $866.174M, YoY -3.78%, QoQ +22.55% | Operating Margin: 19.40% | Net Income: $608.44M, YoY -6.64%, QoQ +24.70% | Net Margin: 13.63% | EBITDA: $1.01087B, EBITDA Margin: 22.64% | EPS (GAAP): $36.33, Diluted EPS: $35.36 | Shares (avg): ~16.746M | Operating Cash Flow: $769.03M | Capex: $345.89M | Free Cash Flow: $423.14M | Net Debt: ~$11.92B | Cash: ~$0.269B | Long-Term Debt: $11.874B | Total Liabilities: $22.596B | Total Assets: $18.622B | Negative Equity: -$3.974B | Share Repurchases: -$268.78M | Share Issuances: +$46.71M
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.46B |
5.40% |
12.96% |
| Gross Profit |
2.35B |
3.88% |
10.58% |
| Operating Income |
866.17M |
-3.78% |
22.55% |
| Net Income |
608.44M |
-6.64% |
24.70% |
| EPS |
36.33 |
-3.71% |
25.02% |
Management Commentary
Transcript data not provided. No earnings-call quotes or themes are available to extract in this analysis.
Transcript not provided.
— Management
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— Management
Forward Guidance
No explicit full-year guidance is included in the provided data. Given the strong Q3 momentum, sales resilience and cash-generation, the firm could reinforce its capital-allocation trajectory (further buybacks and potential debt management) if operating performance persists. Key factors to monitor for outlook: same-store sales/traffic, inventory levels and turns (note the significant inventory increase in the quarter), debt maturities and leverage trajectory, capex cadence for store network optimization, and any updates to guidance in subsequent filings or investor communications.