01—Abstract
Summary
Summary of the 10-Q filed April 16, 2026. Cited figures are marked; the original filing is the authoritative source.
Fastenal Company (FAST) reported a strong first quarter for 2026, with net sales increasing by 12.4% year-over-year to $2,201.7 milliona.
This growth was driven by a combination of improved customer contract signings, a slight uptick in industrial production, and a positive impact from foreign exchange rates. The company demonstrated effective cost management, with Selling, General, and Administrative (SG&A) expenses growing at a slower pace than sales, leading to an operating income increase of 13.6% and net income growth of 13.8% to $339.8 millionb. Diluted earnings per share rose to $0.30 from $0.26 in the prior year's first quarter.
The balance sheet shows total assets of $5,209.8 millionc as of March 31, 2026. While trade receivables increased due to sales growth, inventory levels were managed effectively. The company maintained a solid liquidity position with cash and cash equivalents of $308.6 million.
Fastenal's commitment to returning value to shareholders is evident through its dividend payments and share repurchase program, with $295.7 milliond returned in Q1 2026. The company also provided guidance for capital expenditures, expecting between $310.0 million and $330.0 million for the full year 2026, reflecting investments in facility upgrades and IT infrastructure.
02—Key points
Key Highlights
- Net sales grew by 12.4% to $2,201.7 million in Q1 2026 compared to Q1 2025.
- Operating income increased by 13.6% to $447.6 million, while net income rose by 13.8% to $339.8 million.
- Diluted earnings per share improved to $0.30 from $0.26 year-over-year.
- Gross profit margin slightly decreased to 44.6% from 45.1% due to unfavorable price/cost and customer mix, partially offset by fastener project benefits.
- SG&A expenses as a percentage of net sales improved to 24.3% from 25.0%, demonstrating operational leverage.
- Net cash provided by operating activities significantly increased by 44.3% to $378.4 million.
- The company returned $295.7 million to shareholders through dividends and share repurchases in Q1 2026.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Fastenal Co kept $0.15.
- Revenue$2.20B100.0%
- Cost of revenue−$1.22B55.4%
- Gross profit$982.9M44.6%
- Operating costs−$535.3M24.3%
- Operating income$447.6M20.3%
- Interest, other & tax−$107.8M4.9%
- Net income$339.8M15.4%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 16, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.20B$1.96B | +12.4% |
| Cost of Revenue | $1.22B$1.08B | +13.3% |
| Gross Profit | $982.90M$883.90M | +11.2% |
| SG&A Expenses | $535.30M$490.00M | +9.2% |
| Operating Income | $447.60M$393.90M | +13.6% |
| Net Income | $339.80M$298.70M | +13.8% |
| EPS (Basic) | $0.30$0.26 | +15.4% |
| EPS (Diluted) | $0.30$0.26 | +15.4% |
| Shares Outstanding (Basic) | 1.15B1.15B | +0.1% |
| Shares Outstanding (Diluted) | 1.15B1.15B | +0.1% |
05—Questions
Frequently Asked Questions
What were the main drivers of Fastenal's sales growth in the first quarter of 2026?
Fastenal's sales growth of 12.4% in Q1 2026 was driven by improved customer contract signings since Q1 2024, a slight recovery in industrial production, and a positive contribution from foreign exchange rates. Direct materials sales slightly outpaced indirect materials, reflecting strength in fastener sales and manufacturing customers. Contract sales also continued to outperform non-contract sales.
How did Fastenal manage its costs and maintain profitability?
Despite a slight decrease in gross profit margin (44.6% vs. 45.1%) due to price/cost pressures and customer mix, Fastenal improved its overall profitability. This was achieved through effective management of SG&A expenses, which as a percentage of net sales decreased to 24.3% from 25.0%. This operational leverage contributed to a 13.6% increase in operating income and a 13.8% increase in net income.
What is the company's outlook for capital expenditures?
Fastenal expects full-year 2026 net capital expenditures to be in the range of $310.0 million to $330.0 million, an increase from $230.6 million in 2025. This planned increase is attributed to investments in replacing the Atlanta hub facility, enhancing picking capacity, increased trucking spend, and elevated IT spending.
How is Fastenal addressing potential risks related to tariffs and supply chain disruptions?
Fastenal actively monitors economic conditions, including evolving trade policies and supply chain challenges. The company endeavors to offset impacts from tariffs and import shipping costs by considering them in pricing and operational models. While the effect on net income was immaterial in Q1 2026, they note that lower-tariff inventory is being depleted, which could make these costs more impactful in future quarters. A recent Supreme Court decision invalidating certain tariffs also introduces uncertainty regarding potential refunds.
06—Continue