Fastenal (NASDAQ:FAST) Announces Earnings Results

Fastenal (NASDAQ:FAST) released its quarterly earnings data on Tuesday. The company reported $0.26 earnings per share for the quarter, hitting the consensus estimate of $0.26, Zacks reports. The business had revenue of $2.03 billion during the quarter, compared to analysts’ expectations of $2.04 billion. Fastenal had a return on equity of 33.14% and a net margin of 15.35%.The business’s revenue was up 11.1% on a year-over-year basis. During the same quarter last year, the business posted $0.46 EPS.

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

• Strong results and momentum: Fastenal reported Q4 daily sales up ~11% and record 2025 net sales of $8.2 billion with net income of $1.26 billion, driven by sales growth and disciplined cost management.
• Digital/FMI adoption is a competitive advantage: Digitally enabled channels (FMI + e-business) represented 62.1% of Q4 sales, FMI installed base grew ~7.6% to ~136,600 devices, and 46.1% of Q4 sales were dispensed or managed through FMI.
• Key-account strategy and site expansion: Active 50K+ sites rose 14%, total contract customers increased by 241 (~7%), and management says these large-account wins are driving market-share gains, especially in manufacturing.
• Margin and pricing headwinds: Gross margin contracted ~50 basis points in Q4 due mainly to timing (inventory and a negative supplier rebate true-up), and management highlighted ongoing pricing uncertainty in non‑fastener categories and tariff-related cost pressure.
• Strong cash flow and capital allocation: Operating cash flow was ~ $370M (≈125% of net income), the company returned just over $1B in dividends (~80% of net income) in 2025, and is increasing CapEx to ~3.5% of sales in 2026 to support growth initiatives.

Fastenal Price Performance

Shares of FAST opened at $44.61 on Thursday. Fastenal has a fifty-two week low of $35.31 and a fifty-two week high of $50.63. The firm’s 50-day simple moving average is $41.32 and its two-hundred day simple moving average is $44.43. The stock has a market cap of $51.21 billion, a PE ratio of 40.55, a price-to-earnings-growth ratio of 2.75 and a beta of 0.90. The company has a debt-to-equity ratio of 0.03, a quick ratio of 2.19 and a current ratio of 4.26.

Fastenal Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, February 26th. Investors of record on Thursday, January 29th will be paid a dividend of $0.24 per share. The ex-dividend date of this dividend is Thursday, January 29th. This is an increase from Fastenal’s previous quarterly dividend of $0.22. This represents a $0.96 annualized dividend and a yield of 2.2%. Fastenal’s payout ratio is presently 82.24%.

Insider Buying and Selling

In related news, Director Hsenghung Sam Hsu purchased 1,000 shares of the business’s stock in a transaction that occurred on Thursday, November 13th. The shares were bought at an average price of $49.58 per share, for a total transaction of $49,580.00. Following the purchase, the director directly owned 10,000 shares of the company’s stock, valued at approximately $495,800. This represents a 11.11% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Sarah N. Nielsen acquired 1,000 shares of the stock in a transaction on Wednesday, November 19th. The shares were bought at an average price of $39.60 per share, with a total value of $39,600.00. Following the purchase, the director directly owned 5,000 shares of the company’s stock, valued at $198,000. The trade was a 25.00% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders own 0.37% of the company’s stock.

Institutional Trading of Fastenal

Several institutional investors have recently bought and sold shares of FAST. Brighton Jones LLC purchased a new position in shares of Fastenal during the fourth quarter valued at approximately $496,000. State of Wyoming grew its position in Fastenal by 73.1% in the 2nd quarter. State of Wyoming now owns 6,107 shares of the company’s stock worth $256,000 after purchasing an additional 2,579 shares during the period. Clark Capital Management Group Inc. purchased a new stake in Fastenal during the 3rd quarter valued at $235,000. Eisler Capital Management Ltd. purchased a new stake in Fastenal during the 3rd quarter valued at $226,000. Finally, Schonfeld Strategic Advisors LLC bought a new position in shares of Fastenal during the 3rd quarter valued at $213,000. 81.38% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on FAST shares. Robert W. Baird decreased their target price on Fastenal from $53.00 to $49.00 and set an “outperform” rating for the company in a report on Tuesday, October 14th. Jefferies Financial Group set a $52.00 price objective on shares of Fastenal and gave the stock a “buy” rating in a report on Monday, December 15th. Sanford C. Bernstein reaffirmed an “underperform” rating on shares of Fastenal in a research report on Wednesday. Wolfe Research reduced their price target on shares of Fastenal from $43.00 to $42.00 and set an “underperform” rating on the stock in a research report on Wednesday. Finally, Barclays set a $43.00 price objective on shares of Fastenal and gave the stock an “equal weight” rating in a report on Wednesday. Four equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $48.00.

More Fastenal News

Here are the key news stories impacting Fastenal this week:

• Positive Sentiment: MarketBeat argues Fastenal is in a “buy zone” after a late-2025 pullback, highlighting institutional accumulation, a healthy balance sheet and catalysts in construction/manufacturing that could drive a rebound. The Nuts and Bolts of Fastenal Earnings—And What Comes Next
• Positive Sentiment: Seeking Alpha profiles Fastenal as a “dividend aristocrat” with a moat-worthy business — steady cash flow, 28 years of dividend increases and a capital-return focus that supports long-term investor demand. Fastenal: Dividend Aristocrat With A Moat-Worthy Business
• Positive Sentiment: Management and coverage note digital-led growth and rising operating cash (cited 30% jump in cash from operations), which supports ongoing dividend increases and reinvestment — a constructive signal for income and quality investors. Fastenal Earnings Call Highlights Digital-Led Growth Momentum
• Neutral Sentiment: Q4 results: GAAP EPS essentially in line (~$0.26) while revenue came in about $10M shy of consensus; year-over-year sales grew double digits but the print was mixed enough to temper immediate upside. Fastenal Company Reports 2025 Annual and Fourth Quarter Earnings
• Neutral Sentiment: Transcripts/analyst notes emphasize growth across product lines and improved operational quality, but the company gave no specific 2026 guidance — leaving near-term direction dependent on macro and execution. Fastenal Q4 2025 Earnings Call Transcript
• Negative Sentiment: Several outlets flagged margin pressure — rising inventory costs and tariff impacts — that dented gross margins and helped trigger a post-earnings pullback. Fastenal shares slide after Q4 results show margin pressure
• Negative Sentiment: Wolfe Research cut its price target to $42 and kept an “underperform” rating, and other shops maintained Hold ratings — signaling limited upside from current valuation amid slowing fundamentals. Wolfe Research Adjusts PT on Fastenal Company to $42
• Negative Sentiment: Market reaction: shares dipped after the mixed print and commentary about pricing power erosion — the sell-side caution explains downward pressure despite solid cash flow metrics. Fastenal shares fall 4% as Q4 revenue misses expectations

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.