Key Takeaways Fastenal's construction sales grew 17% in Q2 2026, extending the strong pace for a second quarter.Infrastructure and data center projects are emerging as key sources of construction demand.Daily sales growth accelerated to 14.7%, helped by customer wins, share of wallet and pricing. Fastenal Company (FAST - Free Report) is gaining from stronger activity across construction markets, with infrastructure and data center projects emerging as important sources of demand. The company’s construction sales grew approximately 17% in the second quarter of 2026, marking the second consecutive quarter of growth at this pace. Fastenal also saw strong activity in electrical and utility markets.
The company’s exposure to project-driven demand provides an opportunity to build on this momentum. Infrastructure and data center projects can support demand for industrial supplies and create opportunities for the company to deepen customer relationships. Larger customer engagement has also been a common factor behind the strongest areas of demand.
The broader industrial environment provides additional support. U.S. PMI averaged slightly above 53 in the second quarter, up from 52 in the first quarter. Industrial production was also slightly positive year over year in April and May. The company benefited from this gradual improvement in industrial activity, along with new customer wins and higher share of wallet.
Fastenal’s overall daily sales growth further reflects the stronger demand environment. Daily sales increased 14.7% in the second quarter, compared with 12.4% in the first quarter. The company attributed the growth to new customer wins, increased share of wallet, pricing and improved industrial production.
However, the company faces mixed demand across end markets. Fastenal experienced softer trends in markets linked to discretionary consumer spending. A slowdown in broader economic activity could therefore weigh on construction demand.
Infrastructure and data center activity remain important growth areas for the company’s construction business. Sustained project activity in these markets would provide a strong base for Fastenal to maintain its current growth momentum and support overall sales.
How Fastenal Stacks Up Against PeersFastenal operates in an industrial distribution market where construction activity, project demand and customer expansion are important growth factors. MSC Industrial Direct Co., Inc. (MSM - Free Report) and SiteOne Landscape Supply, Inc. (SITE - Free Report) also have exposure to industrial and construction-related demand, although the end-market mix differs across the companies.
MSC Industrial is seeing signs of improvement in the broader industrial market, with positive industrial production readings across most major manufacturing end markets. Average daily sales increased 7.8% year over year in the third quarter of fiscal 2026. MSC Industrial is also expanding its vending and in-plant footprint, with vending machines increasing 7% year over year to approximately 30,800. Sales through vending rose 15%, while sales to customers with in-plant programs increased 16%.
SiteOne has a more direct exposure to construction through new residential and commercial markets. New commercial construction accounts for 14% of sales and has remained solid, although SiteOne expects the market to be flat in 2026. Project services bidding activity was slightly positive year over year, providing an indication of ongoing project demand. However, new residential construction, which represents 20% of sales, is expected to decline at a high-single-digit rate this year.
Fastenal has a stronger growth profile in construction at present, with exposure to infrastructure, data center, electrical and utility projects. This project-driven demand gives the company opportunities to deepen customer relationships and capture additional business from larger projects. If infrastructure and data center activity remains firm, the company could sustain construction momentum and support overall sales growth.
FAST Stock’s Price Performance & Valuation TrendShares of this wholesale distributor of industrial and construction supplies have gained 27.5% year to date, outperforming the Zacks Industrial Services industry, the broader Industrial Products sector and the S&P 500 Index.
FAST YTD Share Price Performance
Image Source: Zacks Investment Research
FAST stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 38.14, as shown in the chart below.
FAST P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Earnings Estimate Revision of FASTFAST’s earnings estimates for 2026 and 2027 have increased over the past 30 days. The estimated figures for 2026 and 2027 imply year-over-year growth of 15.6% and 10.1%, respectively.
Image Source: Zacks Investment Research
Fastenal currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fastenal zvýšil tržby z MRO o 16,4 % meziročně na 1,08 miliardy USD a tento segment tvořil 44,6 % čtvrtletních tržeb. SG&A klesly na 23,5 % tržeb a provozní marže zůstala na 21 %.
Key Takeaways FAST's FMI sales rose 16.4% YoY to $1.08 billion, reaching 44.6% of second-quarter sales.FMI automation supports replenishment efficiency, customer retention and fixed-cost leverage for FAST.FAST cut SG&A to 23.5% of sales, helping offset gross-margin pressure and hold operating margin at 21%. Fastenal Company (FAST - Free Report) is steadily expanding the role of its Fastenal Managed Inventory (FMI) platform, strengthening a technology-enabled service model that could support greater operating leverage over time. In the second quarter of 2026, FMI sales increased 16.4% year over year to $1.08 billion and represented 44.6% of total revenues, up from 44.1% a year ago. Weighted FASTBin and FASTVend signings rose 8.3% to 6,993 units, while the installed base increased 6.5% to 140,789 machine-equivalent units.
The leverage opportunity stems from FMI's ability to automate inventory management, improve replenishment efficiency and deepen customer integration. Management views FMI installations as leading indicators of future sales, retention and operating efficiency. As more customer spending moves through these systems, Fastenal can potentially support higher sales volumes without a proportionate increase in operating costs.
The second-quarter results provide evidence of that benefit. SG&A expenses improved to 23.5% of sales from 24.4% a year ago, helped by labor productivity and fixed-cost leverage. This offset a 75-basis-point decline in gross margin and allowed operating margin to remain at 21%. Fastenal's larger strategic accounts generally carry lower gross margins, but management believes their higher volumes improve fixed-cost absorption and operating efficiency. FMI is also supporting Fastenal's broader push toward larger customers. Contract sales rose 17.6% and represented 75.8% of quarterly sales, while customer sites generating at least $50,000 per month increased 16.5%.
Overall, Fastenal's rising 44.6% FMI sales mix appears capable of supporting greater operating leverage through automation, customer retention and fixed-cost efficiencies. While price/cost pressure and investment needs could limit near-term margin expansion, continued FMI penetration should strengthen the company's ability to convert sales growth into improved operating efficiency over time.
How Fastenal Stacks Up Against PeersFastenal competes in a distribution market increasingly shaped by digital tools, inventory automation and operating efficiency. MSC Industrial Direct Co., Inc. (MSM - Free Report) and SiteOne Landscape Supply, Inc. (SITE - Free Report) are pursuing similar productivity and customer-integration initiatives.
MSC Industrial is expanding its vending and in-plant solutions while improving productivity across its sales organization. In third-quarter fiscal 2026, vending installations increased 7% year over year to about 30,800 machines, while sales through vending rose 15% and represented roughly 20% of company sales. Sales to customers with in-plant programs increased 16% and accounted for about 21% of sales. MSC is also using automation and AI to reduce manual work and support growth without proportionate headcount increases.
SiteOne is also using digital tools and operational initiatives to improve customer engagement and productivity. The company's siteone.com sales increased more than 50% year to date, while regular active users rose about 40%. Management said digitally engaged customers are growing faster than the company average and that the platform helps increase market share while making associates more productive. SiteOne is pairing these digital initiatives with delivery efficiencies, branch optimization and tight SG&A management as it targets further EBITDA margin expansion.
Fastenal’s FMI platform remains a key competitive advantage, supporting customer integration, retention, share gains and greater operating efficiency as adoption expands.
FAST Stock’s Price Performance & Valuation TrendShares of this wholesale distributor of industrial and construction supplies have gained 26.2% year to date, outperforming the Zacks Industrial Services industry, the broader Industrial Products sector and the S&P 500 Index.
FAST YTD Share Price Performance
Image Source: Zacks Investment Research
FAST stock is currently trading at a premium compared with its industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 37.84, as shown in the chart below.
FAST P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
Earnings Estimate Revision of FASTFAST’s earnings estimates for 2026 and 2027 have increased over the past 30 days. The estimated figures for 2026 and 2027 imply year-over-year growth of 12.8% and 15.6%, respectively.
Image Source: Zacks Investment Research
Fastenal currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
B. Metzler seel. Sohn & Co. AG purchased a new position in shares of Fastenal Company (NASDAQ:FAST – Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 689,676 shares of the company’s stock, valued at approximately $33,125,000. B. Metzler seel. Sohn & Co. AG owned 0.06% of Fastenal at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Mowery & Schoenfeld Wealth Management LLC acquired a new position in Fastenal during the second quarter worth $26,000. Evergreen Advisors LLC purchased a new position in Fastenal in the first quarter worth $26,000. Palladiem LLC acquired a new stake in Fastenal in the fourth quarter valued at $25,000. Elyxium Wealth LLC acquired a new stake in Fastenal in the fourth quarter valued at $25,000. Finally, MV Capital Management Inc. purchased a new stake in shares of Fastenal during the 4th quarter worth $29,000. 81.38% of the stock is currently owned by hedge funds and other institutional investors.
Fastenal Trading Down 1.5% NASDAQ:FAST opened at $50.66 on Friday. The company has a market capitalization of $58.13 billion, a PE ratio of 42.93, a price-to-earnings-growth ratio of 3.21 and a beta of 0.72. The company has a quick ratio of 2.21, a current ratio of 4.18 and a debt-to-equity ratio of 0.01. Fastenal Company has a 52-week low of $38.97 and a 52-week high of $52.92. The stock has a fifty day simple moving average of $47.86 and a 200-day simple moving average of $46.33.
Fastenal (NASDAQ:FAST – Get Free Report) last issued its quarterly earnings data on Tuesday, July 14th. The company reported $0.33 EPS for the quarter, meeting analysts’ consensus estimates of $0.33. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. The firm had revenue of $2.39 billion for the quarter, compared to analysts’ expectations of $2.34 billion. During the same period in the prior year, the company earned $0.29 EPS. The firm’s revenue was up 14.7% on a year-over-year basis. On average, equities research analysts expect that Fastenal Company will post 1.26 earnings per share for the current fiscal year. Fastenal Increases Dividend The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th will be given a $0.26 dividend. This is a boost from Fastenal’s previous quarterly dividend of $0.24. This represents a $1.04 annualized dividend and a dividend yield of 2.1%. The ex-dividend date is Tuesday, July 28th. Fastenal’s dividend payout ratio (DPR) is currently 88.14%.
Insider Activity at Fastenal In related news, Director Michael J. 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 of the company’s stock, valued at approximately $2,875,810. This represents a 4.86% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 sale, the director directly owned 20,000 shares in the company, valued at approximately $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 owned by corporate insiders.
Analysts Set New Price Targets A number of equities analysts have recently weighed in on the stock. Barclays lowered their price target on shares of Fastenal from $47.00 to $46.00 and set an “equal weight” rating on the stock in a research note on Thursday, July 16th. Sanford C. Bernstein reiterated an “underperform” rating on shares of Fastenal in a research note on Wednesday, July 15th. Rothschild & Co Redburn set a $55.00 price objective on shares of Fastenal and gave the stock a “buy” rating in a report on Monday, July 13th. DA Davidson restated a “neutral” rating and set a $46.00 target price on shares of Fastenal in a research report on Wednesday, July 15th. Finally, Morgan Stanley increased their target price on shares of Fastenal from $48.00 to $52.00 and gave the company an “equal weight” rating in a report on Thursday, July 16th. Five research analysts have rated the stock with a Buy rating, five have issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $49.17.
Get Our Latest Research Report on FAST
Fastenal Profile (Free Report)
Fastenal (NASDAQ: FAST) is a wholesale distributor of industrial and construction supplies, best known for its broad assortment of fasteners such as bolts, nuts, screws and anchors. Founded in Winona, Minnesota, Fastenal has grown from a regional supplier into a national and international distributor serving a wide range of end markets, including manufacturing, construction, maintenance, repair and operations (MRO), and government customers. The company is publicly traded and operates through a network of locally staffed branches combined with national distribution capabilities.
Product offerings extend beyond fasteners to include tools, safety and personal protective equipment, power transmission components, cutting and welding supplies, janitorial and material handling items, and other industrial consumables.
Read More Five stocks we like better than Fastenal 3 Energy Stocks Raising Dividends as the Sector Surges 5 Reasons the S&P 500 Could Keep Rallying Through Year-End Walmart’s Post-Earnings Drop Could Be a Buying Opportunity The Trade Desk’s Earnings Miss Raises a Bigger Question About Its AI Future Want to see what other hedge funds are holding FAST? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Fastenal Company (NASDAQ:FAST – Free Report).
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Fastenal za poslední měsíc přidal asi 15,1 % a překonal index S&P 500. Ve 2. čtvrtletí zisk na akcii činil 33 centů a odpovídal odhadům, zatímco tržby vzrostly o 14,7 % na 2,39 miliardy USD.
A month has gone by since the last earnings report for Fastenal (FAST - Free Report) . Shares have added about 15.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Fastenal due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Fastenal Q2 Earnings Meet Estimates, Sales Beat on Favorable PricingFastenal reported mixed second-quarter 2026 results, with earnings meeting the Zacks Consensus Estimate and net sales beating the same. Conversely, year over year, both metrics grew notably. Fastenal continued to benefit from customer signings secured since the first quarter of 2024. Contract customer daily sales increased 17.6% year over year and represented 75.8% of quarterly revenues, up from 73.2% a year earlier.
Fastenal’s Q2 Earnings & Sales in DetailFastenal’s quarterly earnings of 33 cents per share were in line with the Zacks Consensus Estimate, but increased 15.9% year over year from 29 cents per share.
Net sales rose 14.7% year over year to $2.39 billion and surpassed the consensus mark of $2.34 billion by 1.9%. Growth reflected stronger customer contract signings, pricing actions and improved industrial production. Daily sales also advanced 14.7%.
FAST’s Daily Sales Growth TrendsManufacturing daily sales increased 14.9%, with the segment contributing 75.9% of total sales. Heavy Manufacturing led the improvement with 18.1% growth and represented 44.1% of revenues. Other Manufacturing sales rose 10.8%.
Non-residential Construction daily sales advanced 17%, marking continued growth in the market. Other End-Market sales increased 14.1%, aided by transportation and warehousing customers. Total non-manufacturing daily sales climbed 15.1%.
Direct-Material daily sales grew 16.5% and accounted for 39.2% of revenues. Direct Fasteners and Hardware increased 16.8%, while direct cutting tools and abrasives rose 14.8%. Direct Non-Fasteners and Hardware sales improved 16.7%. Indirect-Material daily sales increased 14.1% and represented 60.8% of revenues. Indirect Fastener sales rose 14.6%, safety products increased 13.1%, and other indirect product lines advanced 14.6%. Direct materials slightly outpaced indirect products due to stronger fastener demand and manufacturing activity.
Fastenal’s Digital Sales Outpace Company GrowthDigital Footprint sales increased 16.2% to $1.49 billion and represented 61.6% of revenues, up from 61% in the prior-year quarter. The metric combines sales through Fastenal Managed Inventory technology with eBusiness sales that do not overlap with those services. FMI sales rose 16.4% to $1.08 billion and accounted for 44.6% of revenues. FAST signed 6,993 weighted FASTBin and FASTVend devices, up 8.3%, while the installed base grew 6.5% to 140,789 units. eBusiness sales increased 12.6% to $711.9 million.
FAST Holds Operating Margin Despite PressureGross margin contracted 75 basis points (bps) to 44.6%. Unfavorable net price-cost reduced the margin by about 40 bps, while customer mix, transportation costs and rebate activity created additional pressure. Larger customers generally carry lower gross margins but produce greater profit dollars and operating efficiencies.
Selling, general and administrative expenses improved 80 bps to 23.5% of sales. Labor productivity and fixed-cost leverage offset higher incentive compensation, transportation and travel expenses. As a result, operating margin remained unchanged at 21%, while operating income increased 15.1% to $501.8 million.
Fastenal Generates Solid Cash and Returns CapitalNet income increased year over year by 15.9% to $382.8 million. Operating cash flow totaled $265.7 million, down 4.6%, and represented 69.4% of net income. Accounts receivable increased 17.6%, while inventories edged up 0.5% and accounts payable rose 25.2%. The company returned $305.1 million to shareholders through $275.4 million in dividends and $29.7 million in share repurchases. Total debt declined to $120 million from $230 million a year ago.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresAt this time, Fastenal has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Fastenal has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Key Takeaways Fastenal's contract sales rose 17.6%, reaching 75.8% of quarterly sales as larger accounts gained share.Digital Footprint sales grew 16.2%, while FMI sales climbed 16.4% to $1.08 billion in Q2.FAST's gross margin fell 75 bps as tariffs, supplier inflation, freight and customer mix weighed on margins. Fastenal Company (FAST - Free Report) is becoming a useful read-through on how industrial distribution is changing. The company’s latest results show customers moving toward larger supplier relationships, digital procurement and automated inventory tools.
Those trends support growth, but they also reshape revenue mix and margins. The key question is whether scale and operating leverage can keep offsetting cost and gross-margin pressure.
Fastenal Shows the Shift to Larger AccountsFastenal’s second-quarter 2026 contract sales increased 17.6% year over year and represented 75.8% of quarterly sales, up from 73.2% a year earlier. Contract count rose 7.2% to 3,694, showing that more customers are consolidating spend through structured relationships.
The larger-site data points in the same direction. Customer sites spending at least $50,000 per month increased 16.5% to 3,125, while sales from those sites rose to $1.38 billion from $1.09 billion. That shift makes Fastenal less dependent on one-off transactions and more tied to integrated service models.
FAST Digital Adoption Is Changing DistributionFastenal’s Digital Footprint daily sales increased 16.2% in the second quarter and represented 61.6% of revenues. eBusiness sales rose 12.6%, reflecting deeper customer use of procurement-system connections and digital ordering.
Fastenal Managed Inventory is another sign of where the industry is heading. FMI sales rose 16.4% to $1.08 billion, and the installed base of weighted FASTBin and FASTVend devices increased 6.5% to 140,789 units. These tools embed replenishment and usage data into customer workflows.
Fastenal Margin Trends Reflect a New Trade-OffThe growth quality is improving, but the margin mix is more complicated. Larger strategic customers typically generate more recurring sales and higher profit dollars, but they also tend to carry lower gross margins because of scale and negotiated pricing.
That is the emerging trade-off for industrial distributors. Fastenal’s gross margin declined 75 basis points to 44.6% in the second quarter, while operating margin held at 21% because selling, general and administrative expense leverage offset the drag.
FAST Faces a More Complex Cost EnvironmentTariffs, supplier inflation and freight costs remain important pressures. Unfavorable net price-cost reduced gross margin by about 40 basis points in the second quarter, and customer mix, transportation costs and rebate activity added pressure.
That makes cost recovery a continuing trend to watch across the supply chain. Even with stable demand, trade-policy changes or supplier increases can slow pricing recovery and make quarterly profitability less predictable.
What Fastenal Says About 2026 DemandDemand appears stable to modestly positive, not uniformly strong. Fastenal’s manufacturing daily sales rose 14.9% in the second quarter, led by 18.1% growth in heavy manufacturing, while non-residential construction increased 17%.
Other end markets rose 14.1%, helped by transportation and warehousing customers. That breadth supports the view that industrial demand is constructive, although management commentary also pointed to softness in certain discretionary consumer-linked areas.
FAST Ratings Match a Trend-Driven StoryThe bottom line is that FAST remains a trend-driven industrial distribution story, with digital tools, contract growth and large-site expansion supporting revenue durability. W.W. Grainger, Inc. (GWW - Free Report) provides a relevant comparison because it also operates across industrial supplies, online channels, inventory management services and technical support.
Applied Industrial Technologies, Inc. (AIT - Free Report) is another useful peer for the broader distribution backdrop, with exposure to bearings, power transmission, fluid power and other industrial products.
FAST stock currently carries a Zacks Rank #2 (Buy), with a Momentum Score of A, Growth Score of C and Value Score of D. The Rank and Momentum Score support the near-term setup, while the Value Score suggests investors should still watch how much of the digital and contract-strength story is already reflected in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Fastenal ve čtvrtletí zvýšil tržby o 14,7 % na 2,39 miliardy USD. Tahounem byly Kanada a Mexiko s 333,7 milionu USD a ostatní zahraniční trhy s 83,4 milionu USD.
Did you analyze how Fastenal (FAST - Free Report) fared in its international operations for the quarter ending June 2026? Given the widespread global presence of this maker of industrial and construction fasteners, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.
In the modern, closely-knit global economic landscape, the capacity of a business to access foreign markets is often a key determinant of its financial well-being and growth path. Investors now place great importance on grasping the extent of a company's dependence on international markets, as it sheds light on the firm's earnings stability, its skill in leveraging various economic cycles and its broad growth potential.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While delving into FAST's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
For the quarter, the company's total revenue amounted to $2.39 billion, experiencing an increase of 14.7% year over year. Next, we'll explore the breakdown of FAST's international revenue to understand the importance of its overseas business operations.
Trends in FAST's Revenue from International MarketsOf the total revenue, $83.4 million came from Other foreign countries during the last fiscal quarter, accounting for 3.5%. This represented a surprise of +16.14% as analysts had expected the region to contribute $71.81 million to the total revenue. In comparison, the region contributed $79.1 million, or 3.6%, and $66.1 million, or 3.2%, to total revenue in the previous and year-ago quarters, respectively.
During the quarter, Canada and Mexico contributed $333.7 million in revenue, making up 14% of the total revenue. When compared to the consensus estimate of $325.21 million, this meant a surprise of +2.61%. Looking back, Canada and Mexico contributed $306.3 million, or 13.9%, in the previous quarter, and $281.4 million, or 13.5%, in the same quarter of the previous year.
Anticipated Revenues in Overseas MarketsFor the current fiscal quarter, it is anticipated by Wall Street analysts that Fastenal will post revenues of $2.44 billion, which reflects an increase of 14.3% the same quarter in the previous year. The revenue contributions are expected to be 3.1% from Other foreign countries ($74.23 million), and 13.6% from Canada and Mexico ($331.64 million).
For the full year, a total revenue of $9.23 billion is expected for the company, reflecting an increase of 12.5% from the year before. The revenues from Other foreign countries and Canada and Mexico are expected to make up 3.1%, and 13.7% of this total, corresponding to $289.41 million, and $1.27 billion, respectively.
Key TakeawaysFastenal's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
Here at Zacks, we put a great deal of emphasis on a company's changing earnings outlook, as empirical research has shown that's a powerful force driving a stock's near-term price performance. Quite naturally, the correlation is positive here -- an upward revision in earnings estimates drives the stock price higher.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
Fastenal currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
A Review of Fastenal's Recent Stock Market PerformanceOver the past month, the stock has lost 0.9% versus the Zacks S&P 500 composite's 0.6% increase. The Zacks Industrial Products sector, of which Fastenal is a part, has declined 2.5% over the same period. The company's shares have increased 1.8% over the past three months compared to the S&P 500's 5% increase. Over the same period, the sector has risen 1.1%
Fastenal po zveřejnění výsledků za 2. čtvrtletí klesl, i když tržby vzrostly téměř o 15 % a čistý zisk o 14,9 %. Trh ale zklamalo, že zisk byl jen v souladu s očekáváním.
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52-Week Range$38.97▼
$50.63Dividend Yield2.11%
P/E Ratio40.05
Price Target$48.31
Fastenal’s NASDAQ: FAST stock price declined following its Q2 earnings release, creating another solid entry point for investors. The worst that can be said about the report is that earnings were only in alignment with the consensus forecast, providing no immediate impetus for bullish behavior.
However, “tepid” as the results may have been, the company revealed strengths investors like to own, including double-digit growth and strength across all segments, categories, and end markets, driven by new clients, client penetration, and digitization. Fastenal, among industrial suppliers, is uniquely positioned to benefit from digitization and AI, as it is a leader in technology-backed inventory management, providing effective solutions for businesses.
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Fastenal Fires on All Cylinders: Persistent Strength ExpectedFastenal had a solid Q2 with revenue growing by nearly 15% on broad-based strength. Revenue outpaced MarketBeat’s reported consensus by a slim margin, underpinned by a 14.7% increase in daily sales. Strength was driven by market share gains linked to large-client penetration, with double-digit demand across product lines and end markets. The single area of weakness was the comparison between national-level and localized business, which grew at a 7.2% pace compared to the stronger 17.9% posted by the national-level business.
Margin news was also good, despite the relative weakness in bottom-line results. A slight contraction in gross margin was offset by SG&A leverage, leaving operating and net margins flat to slightly up year over year. Net income grew by 14.9%, enabling balance sheet improvement while investing and returning capital to investors. The capital return is the operational factor, as quarterly strength and business trends allowed management to accelerate buyback activity.
Fastenal is a healthy capital-returning machine. The company’s dividend yields about 2% with shares near the middle of a long-term trading range and is expected to grow annually. Share buybacks have a smaller, but still significant, impact on capital returns, offsetting the impact of share-based compensation, with higher levels expected in upcoming quarters. Q2 capital returns came in at nearly 80% of the net income, well above the long-running 69% average.
Fastenal’s balance sheet highlights provided no red flags for investors, only incentives for ownership. The company's cash balance declined in Q2, but was offset by increases in assets, debt reduction, and equity improvements. Equity improved by more than 3% year-to-date, more than offsetting the incremental increase in the share count logged for the quarter. Looking ahead, investors can expect to see Fastenal’s balance sheet continue improving as it locks in market share and cash flow.
Sell-Side Data Reflects Strong Support for FastenalSell-siders may have wanted more from the Fastenal Q2 release, but it was not sufficient to alter their stance, which reflects strong support. MarketBeat tracks 15 analysts rating the stock as a consensus Hold; there is a 33% Buy-side bias within the data, coverage is increasing, and price targets are steady. Forecasting only modest upside as of mid-July, analyst trends are positive and likely to continue supporting market action. Institutions, meanwhile, are accumulating aggressively, limiting downside risk.
The stock price action also reflects strong, rising support, with the price trending higher over the past two years. The story in 2026 is that price action hit a ceiling in 2025 that will likely be retested before the year ends. The question is whether new highs will be set, and cash flow and capital returns suggest they will. Between then and now, the critical support is near a cluster of exponential moving averages (EMAs), including the 150-day EMA. It is a trigger likely to spur institutional investment when (if) reached.
Fastenal’s primary catalyst this year is the accelerating rollout of its digitized inventory management systems, FastBin and FastVend. They enable manufacturers, industries, and enterprises the ability to manage and control supply costs while providing Fastenal with visibility. Easing inflation is another catalyst, affecting the company’s margin and end-market demand. Assuming energy prices remain subdued, economic activity could pick up across the board.
What the market gets wrong about Fastenal is that its gross margin contractions are part of the overall strategy. The company is leaning hard into national contracted accounts that naturally have lower margins and expenses. Lower expenses are the critical factor, as reduced SG&A more than offsets the decline in gross margin. Meanwhile, the company is becoming entrenched in the end-market ecosystems, a fractured end-market at that, with its FastBin and FastVend systems, establishing a wide moat that competitors will not be able to cross. More importantly, localized vendors are unable to match Fastenal’s scale and digital capabilities, which enable it to gain share across the entire business cycle.
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Key Takeaways Fastenal reported Q2 sales above estimates as earnings met expectations and both rose year over year.FAST benefited from contract customer growth, pricing actions and a 16.2% increase in digital sales.Gross margin narrowed, but operating margin held steady as productivity and cost leverage offset pressures. Fastenal Company (FAST - Free Report) reported mixed second-quarter 2026 results, with earnings meeting the Zacks Consensus Estimate and net sales beating the same. Conversely, year over year, both metrics grew notably.
Fastenal continued to benefit from customer signings secured since the first quarter of 2024. Contract customer daily sales increased 17.6% year over year and represented 75.8% of quarterly revenues, up from 73.2% a year earlier.
FAST stock lost 2.2% during today’s pre-market trading session after the announcement of the financial results.
Fastenal’s Q2 Earnings & Sales HighlightsFastenal’s quarterly earnings of 33 cents per share were in line with the Zacks Consensus Estimate, but increased 15.9% year over year from 29 cents per share.
Net sales rose 14.7% year over year to $2.39 billion and surpassed the consensus mark of $2.34 billion by 1.9%. Growth reflected stronger customer contract signings, pricing actions and improved industrial production. Daily sales also advanced 14.7%.
FAST’s Daily Sales Growth TrendsManufacturing daily sales increased 14.9%, with the segment contributing 75.9% of total sales. Heavy Manufacturing led the improvement with 18.1% growth and represented 44.1% of revenues. Other Manufacturing sales rose 10.8%.
Non-Residential Construction daily sales advanced 17%, marking continued growth in the market. Other End-Market sales increased 14.1%, aided by transportation and warehousing customers. Total Non-Manufacturing daily sales climbed 15.1%.
Direct-Material daily sales grew 16.5% and accounted for 39.2% of revenues. Direct Fasteners and Hardware increased 16.8%, while direct cutting tools and abrasives rose 14.8%. Direct Non-Fasteners and Hardware sales improved 16.7%.
Indirect-Material daily sales increased 14.1% and represented 60.8% of revenues. Indirect Fastener sales rose 14.6%, Safety Products increased 13.1%, and other indirect product lines advanced 14.6%. Direct materials slightly outpaced indirect products due to stronger fastener demand and manufacturing activity.
Fastenal’s Digital Sales Outpace Company GrowthDigital Footprint sales increased 16.2% to $1.49 billion and represented 61.6% of revenues, up from 61% in the prior-year quarter. The metric combines sales through Fastenal Managed Inventory technology with eBusiness sales that do not overlap with those services.
FMI sales rose 16.4% to $1.08 billion and accounted for 44.6% of revenues. FAST signed 6,993 weighted FASTBin and FASTVend devices, up 8.3%, while the installed base grew 6.5% to 140,789 units. eBusiness sales increased 12.6% to $711.9 million.
FAST Holds Operating Margin Despite PressureGross margin contracted 75 basis points (bps) to 44.6%. Unfavorable net price-cost reduced the margin by about 40 bps, while customer mix, transportation costs and rebate activity created additional pressure. Larger customers generally carry lower gross margins but produce greater profit dollars and operating efficiencies.
Selling, general and administrative expenses improved 80 bps to 23.5% of sales. Labor productivity and fixed-cost leverage offset higher incentive compensation, transportation and travel expenses. As a result, operating margin remained unchanged at 21%, while operating income increased 15.1% to $501.8 million.
Fastenal Generates Solid Cash and Returns CapitalNet income increased year over year by 15.9% to $382.8 million. Operating cash flow totaled $265.7 million, down 4.6%, and represented 69.4% of net income. Accounts receivable increased 17.6%, while inventories edged up 0.5% and accounts payable rose 25.2%.
The company returned $305.1 million to shareholders through $275.4 million in dividends and $29.7 million in share repurchases. Total debt declined to $120 million from $230 million a year ago.
FAST’s Zacks Rank & Stocks With the Favorable CombinationFastenal currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Here are some companies from the Industrial Products sector, which according to our model, have the right combination of elements to post an earnings beat in their respective quarters to be reported.
W.W. Grainger, Inc. (GWW - Free Report) has an Earnings ESP of +3.82% and a Zacks Rank of 2.
Grainger’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, with the average surprise being 4.2%. Earnings for the company’s second quarter of 2026 are expected to increase 13.1% year over year.
Caterpillar Inc. (CAT - Free Report) has an Earnings ESP of +2.11% and a Zacks Rank of 2.
Caterpillar’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, with the average surprise being 9.6%. Earnings for the company’s second quarter of 2026 are expected to grow 31.6% year over year.
Kennametal Inc. (KMT - Free Report) has an Earnings ESP of +45.29% and a Zacks Rank #3 (Hold).
Kennametal’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, with the average surprise being 18.6%. Earnings for the company’s second quarter of 2026 are expected to surge a whopping 376.5% year over year.
WINONA, Minn.--(BUSINESS WIRE)--Fastenal Company (Nasdaq:FAST) ('Fastenal,' 'we,' 'our,' or 'us') reported its board of directors declared a dividend of $0.26 per share to be paid in cash on August 25, 2026 to shareholders of record at the close of business on July 28, 2026. Except for share and per share information, dollar amounts are stated in millions.
We began paying annual dividends in 1991, semi-annual dividends in 2003, and then expanded to quarterly dividends in 2011. In addition to these regular dividend payments, we have previously paid special one-time dividends in December 2008, December 2012, December 2020, and December 2023. Our board of directors currently intends to continue paying quarterly dividends, though all future determinations as to payment of dividends will depend upon the financial condition and results of operations of Fastenal and such other factors as are deemed relevant by the board of directors at that time.
In 2026, 2025, and 2024, we paid (or declared) dividends as follows:
Year
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Total
2026
$
0.240
$
0.240
$
0.260
2025
$
0.215
$
0.220
$
0.220
$
0.220
$
0.875
2024
$
0.195
$
0.195
$
0.195
$
0.195
$
0.780
Dividend and common stock repurchase activity during the last ten years is as follows:
Average Per
Total
Dividends per Share
Total Value of
Total Number
Share Price of
Dividend
Dividends
Regular
Special
Total
Common Stock
of Shares
Common Stock
Year
Payments
Paid
Dividend
Dividend
Dividend
Purchased
Purchased
Purchased
2026
Three (1)
$
849.3
$
0.740
$
—
$
0.740
$
49.8
1,075,000
$
46.33
2025
Four
$
1,004.2
$
0.875
$
—
$
0.875
$
—
—
$
—
2024
Four
$
893.3
$
0.780
$
—
$
0.780
$
—
—
$
—
2023
Five (2)
$
1,016.8
$
0.700
$
0.190
$
0.890
$
—
—
$
—
2022
Four
$
711.3
$
0.620
$
—
$
0.620
$
237.8
10,000,000
$
23.79
2021
Four
$
643.7
$
0.560
$
—
$
0.560
$
—
—
$
—
2020
Five (2)
$
803.4
$
0.500
$
0.200
$
0.700
$
52.0
3,200,000
$
16.27
2019
Four
$
498.6
$
0.435
$
—
$
0.435
$
—
—
$
—
2018
Four
$
441.9
$
0.385
$
—
$
0.385
$
103.0
8,000,000
$
12.88
2017
Four
$
369.1
$
0.320
$
—
$
0.320
$
82.6
7,600,000
$
10.86
Ten Year Total
$
7,231.6
$
5.915
$
0.390
$
6.305
$
525.2
29,875,000
$
17.58
In the second quarter of 2026, we purchased 650,000 shares of our common stock at an average price of $45.72 per share.
We have authority to purchase up to 11,325,000 shares of our common stock under the July 12, 2022 authorization. This authorization does not have an expiration date.
All share and per share information reflects the two-for-one stock split in each of 2019 and 2025.
About Fastenal
Organizations around the world rely on Fastenal to help them simplify and secure the supply chain for a broad range of industrial products. To understand our customers' challenges and provide services and solutions that fit their unique needs, we've built out the most extensive presence in our industry, with a vast network of local teams and embedded technology. At the heart of it all is a simple commitment: great people, close to the customer, backed by world-class logistics, technology, and resources.
Additional information regarding Fastenal is available on our website at www.fastenal.com.
This press release contains statements that are not historical in nature and that are intended to be, and are hereby identified as, "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995, including statements regarding expectations as to payment of a quarterly cash dividend and stock repurchase activity in the foreseeable future. Any future determination as to payment of dividends or stock repurchases will depend upon the financial condition and results of operations of Fastenal and such other factors as are deemed relevant by the board of directors. For example, a change in business needs including working capital and funding for acquisitions, or a change in income tax law relating to dividends or stock repurchases, could cause us to decide not to pay a dividend in the future or not to repurchase common stock pursuant to the existing share repurchase authorization. A discussion of other risks and uncertainties is included in our filings with the Securities and Exchange Commission, including our most recent annual report and subsequent quarterly reports. FAST-D
Fastenal čeká za 2. čtvrtletí růst tržeb i EPS, podpořený silnější poptávkou ve výrobě a růstem kontraktů. Květnové denní tržby stouply meziročně o 14,8 % na 37,6 mil. USD.
Key Takeaways Fastenal is expected to post higher Q2 sales, supported by manufacturing demand and contract growth.FAST's May 2026 daily sales rose 14.8%, led by heavy manufacturing, construction and direct product demand.Cost controls, pricing and supply initiatives may support margins despite higher freight and overhead costs. Fastenal Company (FAST - Free Report) is scheduled to report second-quarter 2026 results on July 14, before the opening bell.
In the last reported quarter, its earnings per share (EPS) met the Zacks Consensus Estimate at 30 cents and grew year over year by 13.6%. Net sales marginally topped the consensus mark by 0.04% and grew 12.4% from the year-ago quarter.
Fastenal’s earnings topped the consensus mark in one of the last four quarters, met on two occasions and missed on the remaining one, with the average surprise being 0.1%.
How Are Estimates Placed for FAST Stock?For the second quarter, FAST’s Zacks Consensus Estimate for EPS has moved upward over the past 60 days to 33 cents per share from 32 cents. The estimated figure indicates 13.8% year-over-year growth.
The consensus mark for net sales is pegged at $2.34 billion, indicating a 12.6% increase from the year-ago reported figure of $2.08 billion.
Factors Likely to Have Shaped Fastenal's Q2 PerformanceSales
In the second quarter, the top-line performance of Fastenal is likely to have improved year over year, driven by improved customer contract signings and an improvement in industrial production, alongside favorable pricing and several sales-boosting initiatives. The company’s focus on growing its digital footprint, increasing inventory and improving picking efficiency at its hubs is expected to have boded well, despite the sluggish industrial environment.
Direct materials, which include fasteners, cutting tools and other production-related items, are expected to have added to the sales growth of Fastenal, led by improved demand trends for direct fasteners and hardware. Besides, its manufacturing exposure is likely to have been another major driver for the results. Moreover, a balanced mix of on-site and off-site services, along with market share gains across various product categories, is likely to have been an additional growth contributor.
If we go by the latest monthly sales report, May's daily sales grew 14.8% to $37.6 million year over year and grew 4.6% from April 2026.
In terms of end markets in May 2026, Heavy Manufacturing and Other Manufacturing daily sales increased 18.7% and 11.5%, respectively, with Non-residential Construction growing 16%. In terms of customer usage, daily sales for Direct Fasteners/Hardware and Direct non-Fasteners/Hardware jumped 15.9% and 17.2%, respectively. Daily sales under Direct Cutting Tools and Abrasives also improved 13.2% in May 2026.
During the same month, the daily sales growth of contract and non-contract customers was 18% and 8%, respectively, with daily sales through eBusiness increasing 11%.
Margins
The bottom line of FAST is expected to have improved during the second quarter on the back of a favorable price-cost mix, the ongoing fastener expansion project, supply improvement initiatives and cost control strategies. The company’s efforts in controlling costs, especially container and transportation costs, are encouraging. Automating warehouses, increasing delivery efficiency through its trucking network and selling more private-label products with higher margins are likely to have aided the fourth quarter’s bottom-line growth.
Fastenal is likely to have faced an unfavorable customer and product mix, alongside higher freight and overhead costs, given the broader macro uncertainties spanning the economy. However, the increased leverage from top-line growth and margin expansion initiatives is expected to have more than offset these headwinds.
What the Zacks Model Unveils for FastenalOur proven model predicts an earnings beat for Fastenal this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
FAST’s Earnings ESP: The company has an Earnings ESP of +1.96%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
FAST’s Zacks Rank: Currently, the stock carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks With the Favorable CombinationHere are some other companies from the Industrial Products sector, which, according to our model, also have the right combination of elements to post an earnings beat in their respective quarters to be reported.
Kennametal Inc. (KMT - Free Report) has an Earnings ESP of +45.29% and a Zacks Rank of 1.
Kennametal’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, with the average surprise being 18.6%. Earnings for the company’s second quarter of 2026 are expected to surge a whopping 376.5% year over year.
Caterpillar Inc. (CAT - Free Report) has an Earnings ESP of +2.11% and a Zacks Rank of 2.
Caterpillar’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, with the average surprise being 9.6%. Earnings for the company’s second quarter of 2026 are expected to grow 31.6% year over year.
W.W. Grainger, Inc. (GWW - Free Report) has an Earnings ESP of +2.81% and a Zacks Rank of 2.
Grainger’s earnings topped the consensus mark in three of the last four quarters and missed on the remaining occasion, with the average surprise being 4.2%. Earnings for the company’s second quarter of 2026 are expected to increase 12.9% year over year.
Fastenal Company (NYSE:FAST) will release its second quarter earnings report before the opening bell on Monday, July 13.
Analysts expect the Winona, Minnesota-based company to report quarterly earnings of 33 cents per share, up from 29 cents per share in the year-ago period. The consensus estimate for Fastenal’s quarterly revenue is $2.34 billion. It reported $2.08 billion last year, according to Benzinga Pro.
On April 13, the industrial and construction supplies distributor posted first-quarter net sales of $2.20 billion, up 12.4% year-over-year and ahead of the $2.199 billion estimate.
Fastenal shares gained 0.6% to close at $47.40 on Monday.
Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.
Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.
Considering buying FAST stock? Here’s what analysts think:
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