Fastenal Company (FAST) Earnings

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Dec 2026upcoming

Next quarter

Expected to report Jan 19, 2027 — estimated from last year’s reporting date.

Consensus is $0.31 EPS for Dec 2026 across 6 estimates, ranging $0.31 to $0.31.

FAST Sep 2026

Reported Oct 14, 2026 · before the open

: 2.94%

: $0.34
: $0.35
: —
: $2.46B

Reported results

: $2.46B; from $2.13B
: 44.85%; from 45.27%
: $530.80M; from $441.50M
: 21.55%; from 20.70%
: $401.60M; from $335.50M
: $0.35; from $0.29

Highlights

Earnings: Q3 diluted EPS was $0.35, ahead of the $0.34 consensus by 2.9% and up from $0.29 a year ago and $0.33 in Q2.
Sales growth: Net sales rose 15.5% year over year to $2.46 billion; daily sales also increased 15.5% to $38.5 million, with the same 64 business days in both periods.
Large-customer momentum: Contract sales grew 18.8% and represented 76.5% of sales, while heavy manufacturing grew 20.2%; management cited share gains and customer signings as key drivers.
Operating leverage: Operating margin expanded 80 basis points year over year to 21.5%, as SG&A fell to 23.3% of sales from 24.6%, more than offsetting gross-margin pressure.
Digital sales: FMI sales increased 14.6% to $1.12 billion, or 45.3% of sales; Digital Footprint sales rose 16.1% to $1.54 billion, or 61.4% of sales.
Cash and returns: Operating cash flow was $421.6 million, 105% of net income; Fastenal returned $328.4 million through dividends and repurchases, equal to 81.8% of net income.
Investment plan: Q3 net capital expenditures were $71.8 million; the company maintained its 2026 net capex outlook of $310 million to $330 million.

Analysis

Fastenal delivered a strong Q3, with EPS of $0.35 beating the $0.34 consensus by 2.9%. Revenue of $2.46 billion increased 15.5% from $2.13 billion a year earlier and 3.1% from $2.39 billion in Q2. Operating income rose 20.2% year over year to $530.8 million, while net income increased 19.7% to $401.6 million. Sequentially, operating income grew 5.8% and EPS rose from $0.33. The quarter’s defining feature was continued outperformance with larger contract customers: contract sales grew 18.8%, and heavy manufacturing sales grew 20.2%, against a backdrop of modestly improved industrial production. Pricing contributed about 240 basis points to sales growth, with management also pointing to share gains and customer signings.

Profitability showed the payoff from scale, though gross margin remained pressured. Gross margin was 44.8%, down 50 basis points year over year but up from 44.6% in Q2; larger-customer mix and price/cost weighed on it. SG&A leverage more than offset that pressure, lifting operating margin to 21.5% from 20.7% a year ago. Digital channels remained an important growth engine, while working-capital investment absorbed cash as sales expanded. Operating cash flow still reached 105% of net income, and shareholder distributions increased. Fastenal also maintained a higher 2026 capital spending plan to fund facilities, IT and trucking.

Contract-led sales growth

Broad-based growth: Daily sales increased 15.5% year over year to $38.5 million, compared with $33.3 million; product pricing contributed about 240 basis points and foreign exchange reduced growth by about 10 basis points.
Large customers: Contract sales grew 18.8% and made up 76.5% of sales, up from 73.8% a year ago. Management attributed the outperformance to implementing customer signings made since early 2024 and gaining share through its service model and technology.
Manufacturing strength: Manufacturing sales grew 17.2%, led by heavy manufacturing at 20.2%; manufacturing represented 76.6% of sales. Direct materials grew 18.6%, faster than indirect materials at 14.3%, with fasteners and manufacturing customers contributing to the difference.
Other markets: Non-residential construction sales rose 12.0%, marking a sixth consecutive quarter of growth. Total non-manufacturing sales grew 12.3%.

Margin leverage

Gross margin: Gross margin was 44.8%, down 50 basis points year over year but up from 44.6% in Q2. A shift toward larger customers reduced gross margin by about 50 basis points, while price/cost reduced it by about 30 basis points.
Expense leverage: SG&A was 23.3% of sales, 130 basis points lower year over year. Employee-related expense leveraged by 90 basis points and occupancy by 50 basis points; other SG&A was 10 basis points higher as a share of sales.
Operating result: Operating income increased 20.2% to $530.8 million and operating margin reached 21.5%, up from 20.7% a year earlier. The higher-volume, larger-customer mix carries lower gross margins but can contribute more absolute profit and operating leverage.

Digital penetration

Managed inventory: FMI sales rose 14.6% to $1.12 billion and represented 45.3% of sales. FASTBin/FASTVend sales grew 17.6% to $827.2 million; FASTStock sales increased 7.0% to $294.2 million.
Broader digital reach: Digital Footprint sales increased 16.1% to $1.54 billion, or 61.4% of sales. eBusiness sales rose 14.8% to $721.5 million; the Digital Footprint measure excludes overlap between eBusiness and FMI.
Device activity: Fastenal signed 7,484 weighted FASTBin/FASTVend devices in Q3, up 6.2% year over year. It lowered its 2026 signing goal to 27,000–29,000 machine-equivalent units from 28,000–30,000.

Cash and shareholder returns

Cash conversion: Operating cash flow increased 9.0% year over year to $421.6 million, equal to 105.0% of net income versus 115.3% a year ago. Strong sales growth increased cash tied up in receivables and inventory; higher payables and accrued expenses partly offset the use.
Working capital: Receivables were $1.62 billion, up 19.9% year over year, partly reflecting larger customers’ longer payment terms. Inventory increased 3.1% to $1.78 billion, while payables rose 29.3% to $445.8 million.
Capital returned: Dividends of $298.2 million and repurchases of $30.2 million brought total Q3 shareholder returns to $328.4 million, or 81.8% of net income. The company repurchased 650,000 shares at an average $46.49.

Capital investment

Q3 spending: Net capital expenditures were $71.8 million, or 2.9% of sales, versus $54.7 million, or 2.6%, a year earlier.
Full-year plan: Fastenal maintained its 2026 net capex outlook of $310 million to $330 million, compared with $230.6 million in 2025. Planned spending includes replacing the Atlanta hub and improving network picking capacity, delayed IT projects, and increased trucking investment.

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