Fastenal (NASDAQ:FAST) Issues Earnings Results

Fastenal (NASDAQ:FAST) released its quarterly earnings results on Tuesday. The company reported $0.33 EPS for the quarter, meeting the consensus estimate of $0.33, FiscalAI reports. Fastenal had a net margin of 15.45% and a return on equity of 34.03%. The business had revenue of $2.39 billion during the quarter, compared to analyst estimates of $2.34 billion. During the same period in the prior year, the firm posted $0.29 earnings per share. The company’s quarterly revenue was up 14.7% on a year-over-year basis.

Here are the key takeaways from Fastenal’s conference call:

• Fastenal posted strong Q2 results with daily sales up 14.7%, operating margin expanding slightly, ROIC reaching a decade-plus high, and cash generation remaining robust.
• Growth was described as being driven more by share gains than by the macro backdrop, supported by key account wins, larger customer sites, and broader end-market penetration.
• Digital Footprint and FMI continued to scale, with Digital Footprint DSR up 16.2%, FMI signings up 8.3%, and FMI sales rising to 44.6% of total sales.
• Management said price-cost remained negative in Q2, though it improved by 10 basis points from Q1; they expect continued gradual improvement, not a quick return to full neutrality.
• The company highlighted disciplined SG&A and capital allocation, including operating cash flow of $266 million, $305 million returned to shareholders, and planned 2026 CapEx of about $320 million focused on growth investments.

Fastenal Trading Down 0.8%

Fastenal stock opened at $45.36 on Thursday. The company has a quick ratio of 2.34, a current ratio of 4.18 and a debt-to-equity ratio of 0.01. Fastenal has a 52 week low of $38.97 and a 52 week high of $50.63. The company has a market capitalization of $52.08 billion, a price-to-earnings ratio of 38.44, a price-to-earnings-growth ratio of 2.90 and a beta of 0.72. The stock has a 50-day moving average price of $45.64 and a 200 day moving average price of $45.14.

Fastenal Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Tuesday, July 28th will be paid a $0.26 dividend. The ex-dividend date is Tuesday, July 28th. This is a positive change from Fastenal’s previous quarterly dividend of $0.24. This represents a $1.04 annualized dividend and a dividend yield of 2.3%. Fastenal’s dividend payout ratio (DPR) is 84.21%.

Wall Street Analysts Forecast Growth

A number of brokerages have recently issued reports on FAST. Robert W. Baird reduced their price target on Fastenal from $52.00 to $50.00 and set an “outperform” rating on the stock in a research report on Tuesday, April 14th. Morgan Stanley set a $48.00 price objective on Fastenal and gave the stock an “equal weight” rating in a research report on Wednesday, July 8th. Barclays boosted their target price on Fastenal from $46.00 to $47.00 and gave the stock an “equal weight” rating in a research note on Monday, July 6th. Wolfe Research restated an “underperform” rating and set a $47.00 price target on shares of Fastenal in a research note on Thursday, July 9th. Finally, Rothschild & Co Redburn set a $55.00 price objective on shares of Fastenal and gave the company a “buy” rating in a research report on Monday. Five analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $48.58.

Key Fastenal News

Here are the key news stories impacting Fastenal this week:

• Positive Sentiment: Fastenal reported Q2 revenue of $2.39 billion, topping estimates and rising 14.7% year over year, helped by strong daily sales growth, larger-customer gains, and favorable pricing. Fastenal Company Reports 2026 Second Quarter Earnings
• Positive Sentiment: Several analysts remained constructive after the report, including Rothschild & Co Redburn with a Buy rating and $55 target, and William Blair with a Buy rating on expectations for second-half operating leverage. Rothschild & Co Redburn coverage update
• Positive Sentiment: Morningstar highlighted Fastenal’s ability to use operating leverage to compound earnings, reinforcing the view that the company has a durable business model. Morningstar company report
• Neutral Sentiment: DA Davidson reaffirmed a Neutral rating and set a $46 price target, which is only modestly above the current share price and suggests limited near-term upside. DA Davidson rating update
• Neutral Sentiment: Morgan Stanley kept a Hold rating with a $48 target, signaling that the quarter was solid but not strong enough to change a cautious stance. Morgan Stanley rating update
• Negative Sentiment: The market’s concern appears to be margin compression and weaker cash flow, since earnings merely met estimates rather than beat them decisively, even with strong revenue growth. Zacks earnings commentary

Hedge Funds Weigh In On Fastenal

A number of institutional investors have recently bought and sold shares of the business. Wellington Management Group LLP raised its stake in shares of Fastenal by 243.5% during the 4th quarter. Wellington Management Group LLP now owns 12,095,194 shares of the company’s stock valued at $485,380,000 after buying an additional 8,574,208 shares during the last quarter. Bank of America Corp DE grew its holdings in Fastenal by 106.1% during the second quarter. Bank of America Corp DE now owns 15,431,393 shares of the company’s stock worth $648,118,000 after acquiring an additional 7,943,217 shares during the period. Invesco Ltd. raised its position in Fastenal by 14.0% during the third quarter. Invesco Ltd. now owns 18,215,875 shares of the company’s stock valued at $893,307,000 after acquiring an additional 2,242,116 shares in the last quarter. Amundi raised its position in Fastenal by 36.4% during the fourth quarter. Amundi now owns 6,380,362 shares of the company’s stock valued at $256,045,000 after acquiring an additional 1,701,380 shares in the last quarter. Finally, Raymond James Financial Inc. lifted its holdings in Fastenal by 112.1% in the second quarter. Raymond James Financial Inc. now owns 2,771,861 shares of the company’s stock valued at $116,418,000 after acquiring an additional 1,464,781 shares during the period. 81.38% of the stock is owned by hedge funds and other institutional investors.

About Fastenal

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.