# Fastenal Reports 15.5% Q3 Sales Growth as EPS Reaches $0.35

- URL: https://stocks.freetheai.org/news/fastenal-reports-15-5-q3-sales-growth-as-eps-reaches-0-35-a4bd3b
- Published: 2026-10-14T10:50:00Z
- Category: earnings; sentiment: bullish; impact: medium
- Symbols: [NASDAQ:FAST](https://stocks.freetheai.org/symbols/NASDAQ-FAST)
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Fastenal Company (FAST) increased its net sales by 15.5% year over year in the third quarter of 2026, generating net income of $401.6 million, or $0.35 per share. That compares to $0.29 per share in the same period a year earlier, reflecting a 19.7% rise in net income supported by demand across digital and supply-chain solution offerings.

Operating margin rose to 21.5% from 20.7% a year ago, as operating leverage helped offset overhead expenses. Selling, general, and administrative costs came in at 23.3% of sales. Gross margin shrank by 40 basis points to 44.8%, weighted down by customer mix shifts toward large accounts and price-to-cost adjustments. Operating cash flow totaled $421.6 million, up 9.0%, and the business returned $328.4 million to shareholders through dividends and share buybacks.

Going forward, key factors for the business include whether sales growth can stay in double digits while gross margins stabilize or recover. Shares of Fastenal were virtually unchanged today at $51.43.

## Key points

- Fastenal Company (FAST) reported Q3 2026 net sales growth of 15.5% year over year.
- Net income rose 19.7% to $401.6 million, or $0.35 per share, up from $0.29 per share in the prior-year quarter.
- Operating margin expanded to 21.5% from 20.7%, while gross margin fell 40 basis points to 44.8%.
- Operating cash flow reached $421.6 million, and $328.4 million was returned to investors via dividends and buybacks.

## Questions and answers

### What were Fastenal's sales and earnings for Q3 2026?

Fastenal reported Q3 2026 net sales growth of 15.5% year-over-year. Net income rose 19.7% to $401.6 million, delivering earnings per share of $0.35 compared to $0.29 in the prior-year period.

### Why did Fastenal's gross margin drop in Q3 2026?

Gross margin contracted by 40 basis points to 44.8% due to price-and-cost dynamics and a revenue shift toward larger accounts.

### How much cash did Fastenal return to investors in Q3 2026?

Fastenal generated $421.6 million in operating cash flow and returned $328.4 million to shareholders through dividends and stock buybacks, representing 82% of net income.