Tractor Supply (TSCO) Q2 2026 earnings summary

Executive summary

• Net sales increased 2.3% year-over-year to $4.543 billion in Q2 2026, driven by new store openings despite a decline in comparable transactions and comparable store sales.

• Comparable store sales rose 1.5% year-over-year in some reports, but another source notes a 1.5% decline; core consumable, usable, and edible categories were strong, while seasonal and discretionary categories were weak.

• Adjusted net income declined 1.5% year-over-year to $423.5 million, with adjusted diluted EPS at $0.81, reflecting restructuring and acquisition charges.

• Non-GAAP adjustments totaled $81.2 million, primarily due to $71.7 million in impairment and other charges for Petsense and $9.5 million in acquisition costs for VIP Petcare.

• The company is restructuring its Petsense business and integrating the VIP Petcare acquisition to strengthen its companion animal segment.

Financial highlights

• Gross margin as a percentage of net sales expanded by 24 basis points year-over-year to 37.2%.

• SG&A expenses as a percentage of net sales deleveraged by 118 basis points to 25.1%, driven by lower comparable store sales and higher medical and legal expenses.

• Adjusted operating margin declined 94 basis points year-over-year to 12.1%.

• Operating income fell 19.2% to $467.1 million; adjusted operating income down 5.1% to $548.3 million.

• Net income decreased 16.1% to $360.7 million.

Outlook and guidance

• Fiscal 2026 net sales guidance updated to 2.5% to 3.5% growth.

• Comparable store sales expected to range from -1% to flat.

• Adjusted operating margin rate projected at 8.5% to 8.8%.

• Adjusted net income guidance set at $990 million to $1.05 billion; adjusted EPS expected between $1.90 and $2.00.

• Long-term financial framework withdrawn; update expected with Q4 2026 results.