In-line quarter with strong top-line growth but gross margin compression and cash flow timing headwinds. The lowered FMI signing guidance is a modest negative on digital adoption trajectory. Monitor the conference call for commentary on industrial demand trends and pricing sustainability. The stock's 0% win rate on prior calls suggests limited near-term catalyst — wait for clearer directional signal.
Price Chart
Executive Summary
Fastenal reported Q2 2026 earnings with net sales of $2,386.9M (+14.7% YoY) and diluted EPS of $0.33, in line with consensus estimates of $0.33. Operating margin held steady at 21.0% as SGA leverage offset gross margin compression, while operating cash flow declined to 69.4% of net income due to working capital timing from strong late-quarter sales. The company lowered its 2026 weighted FASTBin/FASTVend device signing goal from 28,000-30,000 to 27,000-29,000 MEUs, a modest negative signal on digital adoption pace.
Key Financial Metrics
Key Facts
- Q2 2026 net sales $2,386.9M, +14.7% YoY (same selling days)
- Diluted EPS $0.33 vs $0.29 YoY, in line with consensus of $0.33
- Operating margin 21.0%, flat YoY as SGA leverage offset gross margin decline of 75 bps to 44.6%
- Operating cash flow $265.7M, 69.4% of net income vs 84.4% in Q2 2025, driven by AR growth from strong June sales (+20.5% YoY)
- Returned $305.1M to shareholders ($275.4M dividends + $29.7M buybacks), 79.7% of net income
- Total debt $120.0M, 2.9% of total capital vs 5.7% a year ago
- Lowered 2026 weighted FASTBin/FASTVend signing goal to 27,000-29,000 MEUs from prior 28,000-30,000
- Contract sales DSR +17.6% YoY; non-contract +7.3% — continued outperformance of larger customers
Financial Impact
Revenue $2,386.9M (+14.7% YoY), EPS $0.33 (+15.9% YoY), operating cash flow $265.7M (-4.6% YoY)
Risk Factors
- Gross margin declined 75 bps YoY to 44.6% due to unfavorable price/cost, customer mix shift to larger accounts, and transportation costs
- Operating cash flow conversion weakened to 69.4% of net income (vs 84.4% last year) due to AR growth from strong late-quarter sales
- Lowered FMI device signing guidance suggests potential deceleration in digital adoption pace
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0000815556-26-000037 |
| Document: fast-20260714.htm | 0000815556-26-000037 |
| Document: 0000815556-26-000037-index-headers.html | 0000815556-26-000037 |
| Document: 0000815556-26-000037-index.html | 0000815556-26-000037 |
| Document: 0000815556-26-000037.txt | 0000815556-26-000037 |
| 8-K Data (Synthetic) | 0000815556-26-000037 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 17, 2026 6w ago | Insider Cluster | $51.23 $49.41 | ▼ −3.55% | ▼ −1.57% | $50.75 (−0.94%) |
Aug 17, 2026 6w ago | Insider Cluster | $51.23 $49.41 | ▼ −3.55% | ▼ −1.57% | $50.75 (−0.94%) |
Aug 11, 2026 7w ago | Insider Cluster | $52.38 $48.79 | ▼ −6.85% | ▼ −5.79% | $50.75 (−3.11%) |
Jul 14, 2026 11w ago | 8-K | $45.74 $52.38 | ▲ +14.52% | ▲ +12.03% | $50.75 (+10.95%) |
Jun 23, 2026 14w ago | 8-K | $46.26 $45.33 | ▼ −2.01% | ▼ −3.94% | $50.75 (+9.71%) |
Apr 13, 2026 24w ago | 8-K | $45.56 $43.30 | ▼ −4.95% | ▼ −12.68% | $50.75 (+11.40%) |
Feb 28, 2026 30w ago | Institutional Cluster | $46.08 $44.88 | ▼ −2.61% | ▲ +5.33% | $50.75 (+10.12%) |
US Market Status
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