Fastenal Q1 Revenue Climbs 12.4% While Shares Drop 6% Pre-Market
Fastenal reported Q1 adjusted EPS of $0.30 on $2.2 billion revenue, up 12.4% YoY, with daily sales rising 12.4% to $34.9 million and operating margin expanding 20 bp to 20.3%. Net income increased 13.8% to $339.8 million and operating cash flow jumped 44.3%, but shares slid 5.8% premarket.
1. Q1 Financial Results
Fastenal reported Q1 2026 adjusted earnings per share of $0.30 on $2.2 billion in revenue, marking a 12.4% year-over-year increase. Daily sales rose 12.4% to $34.9 million, driven by share gains and broad-based demand across core end markets.
2. Margin Performance
Operating margin expanded 20 basis points to 20.3% due to operating leverage and cost discipline, while gross margin declined to 44.6% from 45.1% on roughly 50 bp of unfavorable price/cost dynamics, elevated transportation costs, and customer rebates.
3. Cash Flow and Capital Returns
Net income climbed 13.8% to $339.8 million, and operating cash flow surged 44.3% to $378.4 million, representing 111% of net income. The company returned $295.7 million to shareholders via $275.6 million in dividends and $20.1 million in share repurchases.
4. Market Reaction and Outlook
Shares fell 5.8% in pre-market trading as investors focused on moderating growth trends and margin pressures. Fastenal maintained full-year 2026 guidance of 28,000 to 30,000 machine equivalent units, with FMI Technology sales up 16.6% to $1.0 billion.