Fastenal’s Q3 Revenue, EPS Top Estimates – What Investors Need To Know About Its 2026 Plan

Fastenal’s quarterly results topped estimates, but lower gross margins and a higher 2026 capital spending outlook remain key points for investors to watch.

• Net sales climbed 15.5% year over year, while operating income rose 20.2% to $530.8 million.
• Gross margin slipped to 44.8% from 45.3%, partly due to a shift toward larger customers and price/cost pressures.
• Fastenal expects 2026 capital expenditures, net of proceeds, of $310 million–$330 million, compared with $230.6 million in 2025.

Fastenal Co. (FAST), an industrial and construction supplies distributor, on Wednesday reported third-quarter results that beat analyst expectations, supported by strong sales growth across its core end markets.

FAST shares traded over 1% higher as of this writing.

Sales And Earnings Beat Forecasts

Fastenal reported net sales of $2.46 billion, up 15.5% year over year, compared with Fiscal AI estimates of $2.44 billion. Diluted earnings per share came in at $0.35, beating Fiscal AI estimates of $0.34.

Net income rose to $401.6 million from $335.5 million a year earlier. Operating income increased 20.2% to $530.8 million, while operating margin improved to 21.5% from 20.7%.

Gross Margin Slips

Gross margin declined to 44.8% from 45.3% a year earlier. Fastenal said a shift toward larger customers reduced gross margin, while price/cost also weighed on the metric. Direct sourcing savings, supplier rebates and tariff refunds provided some support.

Sales growth was driven by share gains with larger customers, pricing actions and broad-based demand across core end markets. Product pricing contributed approximately 240 basis points to sales growth during the quarter.

Daily sales increased 15.5% year over year to $38.5 million. The daily sales rate for manufacturing rose 17.2%, while non-residential construction increased 12.0%.

2026 Investment Plans And Capital Returns

Fastenal expects capital expenditures, net of proceeds, to total $310 million to $330 million in 2026, compared with $230.6 million in 2025. The planned spending includes replacing its Atlanta hub, improving capacity and efficiency across its distribution network, continuing IT projects delayed from 2025, and higher trucking costs.

During the quarter, Fastenal signed 7,484 weighted FASTBin and FASTVend devices. These are part of the company’s industrial vending and inventory-management solutions, which help customers access supplies and manage inventory at their facilities. Fastenal maintained its 2026 target of 27,000–29,000 MEUs after lowering it from 28,000–30,000 MEUs in the second quarter (Q2).

Fastenal returned $328.4 million to shareholders during the quarter, including $298.2 million in dividends and $30.2 million in share repurchases.

On Stocktwits, retail sentiment surrounding the stock turned ‘Bullish’ over the past 24 hours. FAST shares have gained over 20% year-to-date.