AutoZone, Inc. stock research
FY2026 Q1
AutoZone (AZO) Gross Margin — Quarter Ended Nov 22, 2025
Revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit was stable sequentially and higher year over year. However, gross margin weakened because cost of revenue rose at a faster rate than revenue.
Gross margin takeaway
Quarter ended Nov 22, 2025 · FY2026 Q1
Revenue increased compared to both the prior quarter and the same quarter a year ago, while gross profit was stable sequentially and higher year over year. However, gross margin weakened because cost of revenue rose at a faster rate than revenue.
- The most notable observable driver is the faster increase in cost of revenue relative to revenue, which compressed gross margin.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were higher than both prior periods.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
51.0%
Gross profit
$2.4B
Revenue
$4.6B
Cost of revenue
$2.3B
Quarter-over-quarter change
-1.7 pts
Year-over-year change
-2.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Nov 23, 2024 | $4.3B | $2.3B | $2.0B | 53.0% |
| Feb 15, 2025 | $4.0B | $2.1B | $1.8B | 53.9% |
| May 10, 2025 | $4.5B | $2.4B | $2.1B | 52.7% |
| Nov 22, 2025 | $4.6B | $2.4B | $2.3B | 51.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
May 10, 2025
-1.7 pts
Year-over-year change
Nov 23, 2024
-2.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver is the faster increase in cost of revenue relative to revenue, which compressed gross margin.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were higher than both prior periods.
Monitor the trend of cost of revenue, as its growth rate relative to revenue will directly influence future gross margin.