$FAST · FASTENAL CO

Fastenal reported Q3 2026 results with daily sales up 15.5% YoY to $38.5M, net income of $401.6M (+19.7% YoY), and diluted EPS of $0.35. Operating margin expanded 90bps to 21.5% as SG&A leverage offset gross margin pressure from large-customer mix shift. The company trimmed its 2026 weighted FASTBin/FASTVend signings goal to 27,000-29,000 MEUs from the prior 28,000-30,000 MEUs.

Extended-hours trading shows FAST at $49.00, down 4.72% from the $51.49 regular close. The selloff likely reflects the trimmed FMI device signings guidance and gross margin compression from large-customer mix shift, despite strong top-line growth and operating margin expansion.

Fastenal delivered one of its strongest top-line quarters with 15.5% daily sales growth, yet the rare guidance cut on FMI signings and persistent gross margin erosion from large-customer mix create a

Fastenal's 15.5% daily sales growth significantly outpaces industrial production trends, with manufacturing end markets (+17.2% DSR) and heavy manufacturing (+20.2% DSR) showing particular strength. The trimmed FMI signings target contrasts with otherwise broad-based operational momentum.

Gross margin declined ~40bps YoY to 44.8% as larger-customer mix shift reduced margin by ~50bps; price/cost was a ~30bps headwind. Continued mix shift toward lower-margin contract customers could further pressure gross margins even as absolute profit dollars grow.