AutoZone vs O'Reilly Automotive: Revenue, Profit and Business Model
AutoZone reported $20.3B of revenue in FY2026 and $2.6B of net income. O'Reilly Automotive reported $17.8B of revenue in FY2025 and $2.5B of net income.
Latest financial snapshot
AutoZone
- Latest revenue
- $20.3B (FY2026)
- Net income
- $2.6B
- Net margin
- 12.6%
- Revenue growth
- +6.7% a year, FY2016–FY2026
O'Reilly Automotive
- Latest revenue
- $17.8B (FY2025)
- Net income
- $2.5B
- Net margin
- 14.3%
- Revenue growth
- +8.4% a year, FY2016–FY2025
Financial summary
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.
O'Reilly Automotive
O'Reilly's net sales grew from $8.59 billion in 2016 to $17.78 billion in 2025. In 2025 gross margin was 51.6%, operating income was about $3.46 billion (19.5% of sales) and net income was $2.54 billion. The company pays no dividend and instead returns cash through buybacks: it repurchased about $30.4 billion of stock from January 2011 through July 29, 2026. For 2026 it guided to $18.9B-$19.2B of revenue, 4%-6% comparable sales growth and diluted EPS of $3.20-$3.30.
Revenue and profit by year
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 |
O'Reilly Automotive
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $17.8B | $2.5B | 14.3% | +6.4% | Source |
| FY2024 | $16.7B | $2.4B | 14.3% | +5.7% | Source |
| FY2023 | $15.8B | $2.3B | 14.8% | +9.7% | Source |
| FY2022 | $14.4B | $2.2B | 15.1% | +8.1% | Source |
| FY2021 | $13.3B | $2.2B | 16.2% | +14.8% | Source |
| FY2020 | $11.6B | $1.8B | 15.1% | +14.3% | Source |
| FY2019 | $10.1B | $1.4B | 13.7% | +6.4% | Source |
| FY2018 | $9.5B | $1.3B | 13.9% | +6.2% | Source |
| FY2017 | $9B | $1.1B | 12.6% | +4.5% | Source |
| FY2016 | $8.6B | $1B | 12.1% | — | Source |
Where the revenue comes from
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.
O'Reilly Automotive
- DIY Retail SalesMajor
Walk-in and online retail purchases by vehicle owners and hobbyists.
- Professional Installer SalesMajor
Commercial deliveries and account sales to repair shops and service providers.
- Private Label and Owned BrandsMaterial
Proprietary and exclusive products that support margin and inventory control.
Business model and strategy
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.
O'Reilly Automotive
How it makes money
O'Reilly makes money by buying auto parts, tools, fluids and accessories in bulk and reselling them through about 6,700 stores. It serves two customer groups from the same inventory. DIY customers (about $8.77 billion, or 49% of 2025 sales) are drivers who fix their own vehicles.
Growth strategy
O'Reilly grows by opening new stores (207 net new in 2025 and a 225-235 target for 2026), adding distribution centers and hub stores to deepen parts availability, and winning more professional accounts. It is also building out newer markets in Mexico (126 stores at June 30, 2026) and Canada (28 stores via Vast-Auto), and keeps buying back shares to lift earnings per share.
Competitive advantage
O'Reilly's edge is parts availability close to the customer. Distribution centers feed hub stores that hold deeper inventory, which in turn supply nearby stores the same day. For a repair shop with a car on the lift, getting the right part within the hour matters more than a small price gap, and that speed is hard for online sellers to match.
Questions about AutoZone vs O'Reilly Automotive
Which company has higher revenue — AutoZone, Inc. or O'Reilly Automotive, Inc.?
AutoZone, Inc. reported $20.3B (FY2026), while O'Reilly Automotive, Inc. reported $17.8B (FY2025). By last reported revenue, AutoZone, Inc. is the larger business, with O'Reilly Automotive, 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 AutoZone, Inc. vs O'Reilly Automotive, Inc.?
AutoZone, Inc.'s market capitalisation stands at $45.8B, while O'Reilly Automotive, Inc.'s is $69.6B. O'Reilly Automotive, Inc. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to AutoZone, Inc..
Which is more financially efficient — AutoZone, Inc. or O'Reilly Automotive, Inc.?
AutoZone, Inc. generates $156k / employee in revenue per employee, while O'Reilly Automotive, Inc. generates $186k / employee. O'Reilly Automotive, 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 AutoZone, Inc. and O'Reilly Automotive, Inc. make money?
AutoZone, Inc. and O'Reilly Automotive, Inc. generate revenue in fundamentally different ways. 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. O'Reilly Automotive, Inc.: O'Reilly makes money by buying auto parts, tools, fluids and accessories in bulk and reselling them through about 6,700 stores.
Which company is valued higher relative to revenue — AutoZone, Inc. or O'Reilly Automotive, Inc.?
On a price-to-sales (P/S) basis, AutoZone, Inc. trades at 2.3x P/S and O'Reilly Automotive, Inc. at 3.9x P/S. O'Reilly Automotive, Inc. commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to AutoZone, Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is AutoZone, Inc. bigger than O'Reilly Automotive, Inc.?
By last reported revenue, AutoZone, Inc. ($20.3B (FY2026)) is the larger company compared to O'Reilly Automotive, Inc. ($17.8B (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 AutoZone vs O'Reilly Automotive overview