Fastenal Finding Success With a More-With-Less Model That Leans on Tech

Fastenal (FAST) reported a 3% stock dip in Q3 due to a 40 bps gross margin slip, partly from price and cost pressures. Operating margin expanded to 21.5% via SG&A improvements. The article also highlights three other companies undervalued by 38-49% according to estimates.

Fastenal reported Q3 net sales of $2.46B, up 15.5% YoY, with operating earnings and EPS rising ~20%. Operating margin improved 90bps to 21.5%, and ROIC reached 32.5%. Growth was driven by market share gains, digital sales, and large customer contracts. The company reaffirmed its FMI device targets and highlighted cost efficiencies and cash returns.

Fastenal (FAST) reported Q2 revenue of $2.46B, up 15.5% YoY, beating estimates. DXP (DXPE) reported $576.5M, up 15.6%, also beating estimates. Transcat (TRNS) reported $92.95M, up 21.6%, with the largest estimate beat. FAST is up 1.3%, DXPE up 5.9%, TRNS down 10.3% since earnings.

Bernstein raised Fastenal's (NASDAQ:FAST) price target to $47 from $42, citing strong sales and healthy end markets, but maintained an Underperform rating. The company's Q3 2026 earnings and revenue exceeded expectations, with sales up 15.5% YoY. Shares are near their 52-week high, but some investors see the stock as overvalued.

Fastenal (FAST) reported Q3 sales of $2.46B (+15.5% YoY) and EPS of $0.35, beating estimates. Shares fell 4% as gross margin declined to 44.8% due to lower-margin large customers. The company maintained its 2026 device signing goals. FAST trades at 38.23x NTM earnings, above its 5-year average.

Fastenal Co (FAST) reported Q3 2026 earnings with record operating income. Gross margin declined 40 basis points YoY to 45% due to customer mix and pricing/cost factors. September sales growth slowed to 14.4%. Receivables increased due to longer payment terms with large customers. The company discussed AI investments, sales force adjustments, and market trends in the earnings call.