- AutoZone's QQ4 2025 results show a resilient top line with revenue of USD 6.2427 billion, up 0.6% year over year, and a strong quarterly cadence evidenced by a 39.8% sequential (QoQ) rise in revenue from the prior quarter. Gross profit was USD 3.2165 billion, delivering a gross margin of approximately 51.52%. Net income reached USD 836.95 million and diluted EPS was USD 48.71 (GAAP USD 50.02). These figures reflect typical end-of-year seasonality in aftermarket parts demand and a favorable mix that supported profitability in the quarter.
- On a year-over-year basis, operating income fell about 7.8% and net income declined roughly 7.2%, while QoQ metrics improved meaningfully with operating income up ~38.1% and net income up ~37.6%, driven by the seasonal strength and favorable pricing/mix. EBITDA stood at USD 1.393 billion with an implied EBITDARatio of ~0.223, underscoring solid cash-generating capacity in the quarter. The earnings cadence suggests a robust near-term operating performance but offsets modest margin compression on a yearly basis.
- The balance sheet raises a material risk flag: cash and cash equivalents are USD 271.8 million against total debt of USD 11.89 billion, with total liabilities of USD 21.41 billion and negative stockholders’ equity of approximately USD -2.06 billion. Current liabilities exceed current assets (current ratio ~0.77), indicating tighter short-term liquidity despite strong quarterly cash flow signals historically associated with the AutoZone model. The dataset provides no free cash flow figure, limiting view on cash conversion, but interest coverage remains favorable given EBITDA and interest expense levels. Management commentary (transcripts) is not provided in the data, so quotes from the earnings call are not embedded here. Investors should monitor deleveraging progress, working capital efficiency, and any changes to store-level profitability over the coming quarters.