Fastenal (FAST) Q3 2026 earnings summary

Executive summary

• Q3 sales rose 15.5% to $2,463.3M; operating income grew 20.2%, net income 19.7% and diluted EPS 19.8% to $0.35.

• Operating margin expanded 90 bps to 21.5%, as share gains and SG&A leverage outweighed gross-margin pressure.

• Growth was supported by key-account share gains, contract wins, pricing and improved industrial demand.

Financial highlights

• Net sales were $2,463.3M versus $2,133.3M a year earlier; operating income was $530.8M and net income was $401.6M.

• Gross margin was 44.8%, down 40 bps YoY; SG&A fell 130 bps to 23.3% of sales.

• Nine-month sales rose 14.2% to $7,051.9M; operating income increased 16.4% to $1,480.2M and net income rose 16.6% to $1,124.2M.

Outlook and guidance

• FY 2026 net capital expenditures are expected at $310M-$330M; weighted FASTBin/FASTVend signing goal was revised to 27,000-29,000 MEUs from 28,000-30,000.

• 2026 Digital Footprint estimate is 62%-63% of sales, revised from 66%; Q3 penetration was 61.4%.

• When sales grow double digits, management targets incremental operating margins in the mid-20s or higher; this is an internal objective, not guidance.

• Ongoing tax rate is expected to be 24.6%, absent discrete items or broader tax-law changes.