Fastenal Company reported financial results for the third quarter ended September 30, 2026, showing strong sales growth and improved operating margins. Daily sales increased by 15.5% year-over-year to $38.5 million, driven by share gains with larger customers, pricing actions, and broad-based demand across core end markets.
Net sales for the quarter totaled $2.46 billion, up 15.5% from the prior year. The company reported operating income of $530.8 million, representing an operating margin of 21.5%, a 90 basis point improvement year-over-year. This improvement was attributed to selling, general, and administrative (SG&A) expense leverage that more than offset gross margin pressure related to customer mix.
Gross profit for the quarter was $1.10 billion, or 44.8% of net sales. The company noted that a continued shift in customer mix toward larger customers reduced gross margin by approximately 50 basis points, while price/cost actions improved margins by approximately 30 basis points.
Net income for the third quarter was $401.6 million, or $0.35 per diluted share, compared to $335.5 million and $0.29 per share in the prior year.
Fastenal generated $422 million in operating cash flow during the quarter, representing 105% of net income. The company returned $328 million to shareholders through dividends and share repurchases, representing 82% of net income.
On the strategic front, the company signed 7,484 weighted Fastenal Managed Inventory (FMI) devices in the quarter, which include FASTStock, FASTBin, and FASTVend offerings. Digital Footprint sales, a combination of FMI and eBusiness sales, increased to $1.54 billion in the quarter.
