Casey's Q3 EPS Up 49.8% on 5.7% Inside Sales Gain, Lifts FY26 EBITDA Outlook
Casey's Q3 EPS jumped 49.8% to $3.49, topping estimates, while revenue of $3.916 billion rose 0.3% year over year but missed consensus by 2.6%, and inside sales climbed 5.7% to $1.48 billion as gross margin widened 230 bps to 25.7%. The company raised its FY26 EBITDA outlook to 18-20%, plans $600 million capex, 80 stores and $76 million buybacks.
1. Q3 Fiscal 2026 Results
Casey's reported fiscal third-quarter EPS of $3.49, a 49.8% gain over the prior year and above estimates. Total revenue reached $3.916 billion, up 0.3% year over year but 2.6% below consensus, while inside sales climbed 5.7% to $1.48 billion, led by prepared food and grocery gains.
2. Margin Expansion and Cost Dynamics
Gross margin widened 230 bps to 25.7% and inside gross margin rose 130 bps to 42.2%, fueling a 27.5% jump in EBITDA to $308.9 million. Operating expenses increased 4.1% due to higher labor costs, integration charges and weather-related expenses, while fuel margins improved to $0.41 per gallon.
3. Updated FY26 Outlook and Capital Allocation
The company raised its FY26 EBITDA growth forecast to 18-20%, up from 15-17%, and plans $600 million in capital expenditures. It expects to open 80 new stores, repurchased $76 million of shares this quarter and declared a $0.57 quarterly dividend, emphasizing disciplined growth and shareholder returns.