Advance Auto Parts vs AutoZone: Revenue, Profit and Business Model
Advance Auto Parts reported $8.6B of revenue in FY2025 and $44M of net income. AutoZone reported $20.3B of revenue in FY2026 and $2.6B of net income.
Latest financial snapshot
Advance Auto Parts
- Latest revenue
- $8.6B (FY2025)
- Net income
- $44M
- Net margin
- 0.5%
- Revenue growth
- -1.2% a year, FY2016–FY2025
AutoZone
- Latest revenue
- $20.3B (FY2026)
- Net income
- $2.6B
- Net margin
- 12.6%
- Revenue growth
- +6.7% a year, FY2016–FY2026
Financial summary
Advance Auto Parts
Net sales from continuing operations declined from $9.094 billion in fiscal 2024 to $8.601 billion in fiscal 2025 as the company completed its store-footprint optimization. Net income attributable to Advance was $44 million in fiscal 2025, while income from continuing operations was $68 million; the difference reflects discontinued operations and attribution presented in the filing.
AutoZone
AutoZone converts steady repair demand into cash and returns almost all of it to shareholders. Fiscal 2026 operating cash flow was US$3.30 billion on net sales of US$20.34 billion, and the company pays no dividend. Since fiscal 1998 it has repurchased 156.2 million shares for US$40.5 billion, including US$2.0 billion in fiscal 2026 at an average price of US$3,496 a share, leaving 16.2 million shares outstanding at August 29, 2026. That is why per-share earnings grow faster than profit: fiscal 2026 net income rose 3.0 percent to US$2.57 billion while diluted earnings per share rose 5.3 percent to US$152.55. The buybacks are partly debt funded, so the balance sheet carries US$9.08 billion of debt and a US$2.50 billion stockholders' deficit, with adjusted debt to EBITDAR of 2.5 times and adjusted after-tax return on invested capital of 35.8 percent.
Revenue and profit by year
Advance Auto Parts
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $8.6B | $44M | 0.5% | -5.4% | Source |
| FY2024 | $9.1B | -$336M | -3.7% | -1.2% | Source |
| FY2023 | $9.2B | $30M | 0.3% | +0.7% | Source |
| FY2022 | $9.1B | $464.4M | 5.1% | -16.8% | Source |
| FY2021 | $11B | $596.6M | 5.4% | +8.8% | Source |
| FY2020 | $10.1B | $493M | 4.9% | +4.1% | Source |
| FY2019 | $9.7B | $486.9M | 5.0% | +1.3% | Source |
| FY2018 | $9.6B | $423.8M | 4.4% | +2.2% | Source |
| FY2017 | $9.4B | $475.5M | 5.1% | -2.0% | Source |
| FY2016 | $9.6B | $459.6M | 4.8% | — | Source |
AutoZone
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $20.3B | $2.6B | 12.6% | +7.4% | Source |
| FY2025 | $18.9B | $2.5B | 13.2% | +2.4% | Source |
| FY2024 | $18.5B | $2.7B | 14.4% | +5.9% | Source |
| FY2023 | $17.5B | $2.5B | 14.5% | +7.4% | Source |
| FY2022 | $16.3B | $2.4B | 14.9% | +11.1% | Source |
| FY2021 | $14.6B | $2.2B | 14.8% | +15.8% | Source |
| FY2020 | $12.6B | $1.7B | 13.7% | +6.5% | Source |
| FY2019 | $11.9B | $1.6B | 13.6% | +5.7% | Source |
| FY2018 | $11.2B | $1.3B | 11.9% | +3.1% | Source |
| FY2017 | $10.9B | $1.3B | 11.8% | +2.4% | Source |
| FY2016 | $10.6B | $1.2B | 11.7% | — | Source |
Where the revenue comes from
Advance Auto Parts
- Parts and batteries64%
Replacement parts and batteries represented 64% of fiscal 2025 net sales.
- Accessories and chemicals21%
Accessories and chemicals represented 21% of fiscal 2025 net sales.
- Engine maintenance14%
Engine-maintenance products represented 14% of fiscal 2025 net sales.
- Other products1%
Other products represented 1% of fiscal 2025 net sales.
AutoZone
- Do-It-For-Me (DIFM) Commercial~28%
Domestic commercial sales to independent repair shops and local service garages were US$5.76 billion in fiscal 2026 (up 10.6%), about 28% of total net sales of US$20.34 billion.
- Do-It-Yourself (DIY) Retail
~72% (with international and other)
All other sales, about US$14.58 billion in fiscal 2026: domestic DIY retail plus stores in Mexico and Brazil, e-commerce and ALLDATA. The earnings release does not split DIY from these other sales.
- ALLDATA Software Subscriptions
Not separately disclosed
Recurring revenue from diagnostic software subscriptions for independent repair shops, providing OEM diagnostic data and repair procedures; included in the non-commercial sales figure above.
Business model and strategy
Advance Auto Parts
How it makes money
Advance sells replacement parts, batteries, maintenance products, accessories, chemicals, and tools to professional repair businesses and DIY customers. Its blended-box model serves both groups from the same stores, supported by hubs, distribution centers, commercial delivery, e-commerce, and independently owned Carquest locations.
Growth strategy
Advance's multi-year plan focuses on merchandising excellence, supply-chain transformation, and store operations. Following the Worldpac sale and store-footprint optimization, the company is concentrating on the blended-box model that serves professional and DIY customers from the same stores.
Competitive advantage
Advance combines 4,305 company-operated stores at January 3, 2026 with commercial delivery, hub inventory, the Carquest network, and the owned DieHard brand. These assets support urgent local fulfillment for professional and DIY customers.
AutoZone
How it makes money
AutoZone runs two connected businesses: DIY retail, where customers buy parts for their own vehicles, and DIFM (Do-It-For-Me) commercial sales to professional repair shops. Domestic commercial sales reached US$5.76 billion in fiscal 2026, up 10.6 percent, about 28 percent of total net sales of US$20.34 billion.
Growth strategy
With the U.S. store base mature, most domestic growth has to come from the professional market and from putting more inventory closer to customers. Domestic commercial sales grew 10.6 percent to US$5.76 billion in fiscal 2026, and the company added 345 commercial programs and 39 mega hubs during the year.
Competitive advantage
AutoZone's advantage is local parts availability. A customer whose car will not start cannot wait two days for delivery, so the value sits in having the part nearby: 6,863 U.S. stores backed by 172 mega hub stores that each carry 80,000 to 110,000 unique SKUs and supply the stores and commercial customers around them.
Questions about Advance Auto Parts vs AutoZone
Which company has higher revenue — Advance Auto Parts, Inc. or AutoZone, Inc.?
Advance Auto Parts, Inc. reported $8.6B (FY2025), while AutoZone, Inc. reported $20.3B (FY2026). By last reported revenue, AutoZone, Inc. is the larger business, with Advance Auto Parts, Inc. reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Advance Auto Parts, Inc. vs AutoZone, Inc.?
Advance Auto Parts, Inc.'s market capitalisation stands at $2.7B, while AutoZone, Inc.'s is $45.8B. AutoZone, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Advance Auto Parts, Inc..
Which is more financially efficient — Advance Auto Parts, Inc. or AutoZone, Inc.?
Advance Auto Parts, Inc. generates $159k / employee in revenue per employee, while AutoZone, Inc. generates $156k / employee. Advance Auto Parts, Inc. shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Advance Auto Parts, Inc. and AutoZone, Inc. make money?
Advance Auto Parts, Inc. and AutoZone, Inc. generate revenue in fundamentally different ways. Advance Auto Parts, Inc.: Advance sells replacement parts, batteries, maintenance products, accessories, chemicals, and tools to professional repair businesses and DIY customers. AutoZone, Inc.: AutoZone runs two connected businesses: DIY retail, where customers buy parts for their own vehicles, and DIFM (Do-It-For-Me) commercial sales to professional repair shops.
Which company is valued higher relative to revenue — Advance Auto Parts, Inc. or AutoZone, Inc.?
On a price-to-sales (P/S) basis, Advance Auto Parts, Inc. trades at 0.3x P/S and AutoZone, Inc. at 2.3x P/S. AutoZone, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Advance Auto Parts, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Advance Auto Parts, Inc. bigger than AutoZone, Inc.?
By last reported revenue, AutoZone, Inc. ($20.3B (FY2026)) is the larger company compared to Advance Auto Parts, Inc. ($8.6B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Advance Auto Parts vs AutoZone overview