Tractor Supply (TSCO) Q1 2026 earnings summary

Executive summary

• Net sales rose 3.6% year-over-year to $3.59 billion, driven by record new store openings, stable core category demand, and strong digital sales.

• Comparable store sales increased 0.5%, reversing a 0.9% decline in the prior year quarter, with average ticket up 1.6% and transactions down 1%.

• Companion animal (pet) category underperformed, creating a 100 basis point drag on comps, while other core categories and digital business showed strength.

• Diluted EPS was $0.31, down 7.2% year-over-year; net income fell 8.3% to $164.5 million.

• Gross margin remained flat at 36.2%, with ongoing cost pressures from tariffs and freight managed through efficiencies.

Financial highlights

• Net sales: $3.59 billion, up 3.6% year-over-year, primarily from new store growth.

• Diluted EPS: $0.31 for the quarter, down 7.2% year-over-year.

• Comparable store sales: +0.5%; average ticket +1.6%, transactions -1%.

• Gross margin: 36.2%, flat year-over-year.

• SG&A increased 6.1% to $1.07 billion, 29.7% of sales, up 70 basis points.

Outlook and guidance

• Full-year 2026 guidance reaffirmed, targeting 1%-3% comp sales growth for remaining quarters and net sales growth of 4%-6%.

• Operating margin rate expected between 9.3% and 9.6%.

• Net income forecasted at $1.11 billion to $1.17 billion; diluted EPS of $2.13 to $2.23.

• Gross margin expected to strengthen in the second half as new distribution center comes online.

• No incremental benefit from tariff refunds assumed in outlook.