AutoZone board approves additional $1.5 billion share repurchase

MEMPHIS - AutoZone, Inc. (NYSE:AZO), currently trading at $4,027.76 with a market capitalization of $67.1 billion, announced Wednesday that its Board of Directors has authorized an additional $1.5 billion for the company’s ongoing share repurchase program.

The new authorization brings the total amount approved for share repurchases to $40.7 billion since the program began in 1998, according to a company press release.

"Our disciplined capital allocation approach gives us the ability to generate strong free cash flow, invest in growth, and increase our share buyback authorization while maintaining investment grade credit ratings," said Jamere Jackson, Chief Financial Officer of AutoZone.

The automotive parts retailer and distributor currently operates 7,657 stores across the Americas, including 6,627 in the United States, 883 in Mexico, and 147 in Brazil as of August 30, 2025.

AutoZone describes itself as the leading retailer and distributor of automotive replacement parts and accessories in the Americas. The company’s stores offer automotive hard parts, maintenance items, and accessories for cars and light trucks. Most locations also operate commercial sales programs serving repair garages, dealers, service stations, and fleet owners.

In addition to its physical stores, the company sells products through its websites and provides automotive diagnostic and repair software through its ALLDATA brand.

In other recent news, AutoZone has experienced a series of adjustments in its stock price targets by several financial firms, reflecting a mixed outlook on its fiscal performance. Despite margin pressures in the fourth quarter of 2025, BMO Capital raised its price target for AutoZone to $4,600, maintaining an Outperform rating. Guggenheim also increased its price target to $4,600, highlighting strong fourth-quarter operating results, including significant domestic commercial net sales growth and improved FIFO gross margins.

Conversely, UBS lowered its price target to $4,800, pointing to non-cash charges from LIFO accounting as a temporary challenge, while still maintaining a Buy rating. Similarly, Raymond James reduced its target to $4,800, citing larger-than-expected LIFO charges but emphasizing these are accounting issues rather than fundamental margin concerns. TD Cowen maintained its price target at $4,900, praising the growth in AutoZone’s Do-It-For-Me segment despite ongoing margin pressures linked to LIFO impacts.

These recent developments underscore the varying perspectives among analysts regarding AutoZone’s financial health and future performance.

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