Fastenal (NASDAQ:FAST) Releases Earnings Results, Beats Expectations By $0.01 EPS

Fastenal (NASDAQ:FAST) issued its quarterly earnings results on Wednesday. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.01, RTT News reports. The business had revenue of $2.46 billion for the quarter, compared to analyst estimates of $2.44 billion. Fastenal had a return on equity of 34.03% and a net margin of 15.45%. The firm’s revenue for the quarter was up 15.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.29 earnings per share.

Here are the key takeaways from Fastenal’s conference call:

• Fastenal reported a strong third quarter, with sales up 15.5% to $2.46 billion, operating margin expanding 90 basis points to 21.5%, and operating income rising $90 million year over year. EPS and operating earnings grew roughly 20%, faster than sales.
• Management attributed growth primarily to market-share gains, new contract wins, and deeper penetration of large accounts. Contract customers generated 18.8% daily sales growth, while sites spending at least $50,000 per month increased nearly 19% and sales from those sites rose roughly 28%.
• Technology adoption continued to strengthen customer relationships and efficiency: digital sales represented 61.4% of revenue, the FMI installed base surpassed 143,000 devices, and FASTBin sales grew approximately 18%. Management maintained its expectation for 27,000–29,000 weighted device signings in 2026.
• Gross margin declined 40 basis points year over year to approximately 45%, reflecting a roughly 50-basis-point customer-mix headwind and a 30-basis-point price-cost gap. Management said about 20 basis points of third-quarter gross-margin benefit came from timing-related items that should not be assumed to recur.
• September daily sales growth moderated to 14.4% and pricing benefits are expected to fade as prior actions are lapped, although executives characterized the change as a normalization rather than a deterioration in demand. Management continues to target price-cost neutrality and believes operating-margin incrementals can remain in the mid-20% range during double-digit sales growth.

Fastenal Price Performance

NASDAQ:FAST opened at $52.00 on Thursday. Fastenal has a 52-week low of $38.97 and a 52-week high of $52.92. The company has a market cap of $59.67 billion, a P/E ratio of 43.58, a P/E/G ratio of 3.19 and a beta of 0.69. The company has a debt-to-equity ratio of 0.01, a quick ratio of 2.21 and a current ratio of 4.18. The stock’s 50-day simple moving average is $50.37 and its 200 day simple moving average is $47.46.

Fastenal Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Wednesday, October 28th will be issued a $0.26 dividend. The ex-dividend date is Wednesday, October 28th. This represents a $1.04 annualized dividend and a dividend yield of 2.0%. Fastenal’s dividend payout ratio (DPR) is presently 88.14%.

Insider Transactions at Fastenal

In other Fastenal news, Director Michael Ancius sold 3,000 shares of the company’s stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $49.00, for a total value of $147,000.00. Following the sale, the director owned 58,690 shares in the company, valued at $2,875,810. This represents a 4.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Rita J. Heise sold 34,964 shares of the company’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $50.05, for a total value of $1,749,948.20. Following the completion of the transaction, the director directly owned 20,000 shares in the company, valued at $1,001,000. The trade was a 63.61% decrease in their position. The SEC filing for this sale provides additional information. 0.28% of the stock is currently owned by corporate insiders.

Key Stories Impacting Fastenal

Here are the key news stories impacting Fastenal this week:

• Positive Sentiment: Q3 earnings exceeded expectations: Fastenal reported adjusted earnings of $0.35 per share versus the $0.34 consensus estimate. Revenue rose 15.5% year over year to $2.46 billion, slightly above expectations, while net income increased 20% to $401.6 million. Fastenal Company Reports 2026 Third Quarter Earnings
• Positive Sentiment: Growth with major customers remains strong: Management cited manufacturing demand, larger-customer wins and continued adoption of Onsite, digital and supply-chain solutions. Expense leverage also helped support profit growth and margins. Fastenal quarterly profit rises 20%
• Positive Sentiment: Shareholder returns remain supportive: Fastenal declared a quarterly dividend of $0.26 per share, or $1.04 annualized, representing an approximately 2% yield. Jefferies also raised its price target from $52 to $60, reflecting confidence in the company’s growth outlook. Jefferies raises Fastenal stock target
• Neutral Sentiment: Investors are balancing growth against valuation: FAST trades near its 52-week high at roughly 43.6 times earnings, leaving limited room for disappointment despite strong operating momentum. Fastenal: I See No Reason To Pay A Higher Premium
• Negative Sentiment: Higher spending and device-signing concerns weigh on the outlook: Management expects 27,000 to 29,000 weighted device signings in 2026, and reports characterized the target as a reduction that could slow future growth. Investors are also concerned that increased spending may pressure margins. Fastenal dips on heavier spending expectations

Analyst Upgrades and Downgrades

Several brokerages have commented on FAST. Morgan Stanley upped their target price on shares of Fastenal from $48.00 to $52.00 and gave the company an “equal weight” rating in a research note on Thursday, July 16th. Robert W. Baird set a $54.00 price target on shares of Fastenal in a research report on Friday, August 7th. Rothschild & Co Redburn set a $55.00 price target on shares of Fastenal and gave the company a “buy” rating in a report on Monday, July 13th. Barclays reduced their target price on Fastenal from $47.00 to $46.00 and set an “equal weight” rating on the stock in a report on Thursday, July 16th. Finally, William Blair reiterated an “outperform” rating on shares of Fastenal in a report on Friday, September 4th. Six investment analysts have rated the stock with a Buy rating, five have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, Fastenal presently has an average rating of “Hold” and an average price target of $49.92.

About Fastenal

Fastenal Company is a distributor of industrial and construction supplies serving businesses, contractors, manufacturers and other organizations. Its product offerings include fasteners such as bolts, nuts and screws, as well as safety equipment, tools, cutting tools, material-handling products, electrical and plumbing supplies, and maintenance and repair items.

The company sells products through a network of branch locations, onsite customer facilities, industrial vending machines and digital platforms.