Fastenal (NASDAQ:FAST) Issues Earnings Results, Meets Expectations

Fastenal (NASDAQ:FAST) issued its quarterly earnings data on Tuesday. The company reported $0.26 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.26, Zacks reports. Fastenal had a net margin of 15.34% and a return on equity of 32.69%. The company had revenue of $2.03 billion during the quarter, compared to the consensus estimate of $2.04 billion. During the same quarter last year, the company earned $0.46 earnings per share. Fastenal’s revenue for the quarter was up 11.1% on a year-over-year basis.

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 Stock Performance

Shares of FAST opened at $42.62 on Wednesday. The firm has a market capitalization of $48.93 billion, a PE ratio of 39.83, a P/E/G ratio of 3.15 and a beta of 0.90. The company has a quick ratio of 2.19, a current ratio of 4.26 and a debt-to-equity ratio of 0.03. The firm has a 50-day moving average price of $41.25 and a 200 day moving average price of $44.43. Fastenal has a 52-week low of $35.31 and a 52-week high of $50.63.

Fastenal Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, February 26th. Investors of record on Thursday, January 29th will be issued a $0.24 dividend. 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 2.3%. Fastenal’s dividend payout ratio is currently 89.72%.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on the stock. Weiss Ratings reiterated a “buy (b-)” rating on shares of Fastenal in a research note on Monday, December 29th. Wolfe Research raised Fastenal from an “underperform” rating to a “peer perform” rating and set a $43.00 price target on the stock in a report on Thursday, November 13th. Jefferies Financial Group set a $52.00 price objective on Fastenal and gave the company a “buy” rating in a research report on Monday, December 15th. Robert W. Baird lowered their price objective on Fastenal from $53.00 to $49.00 and set an “outperform” rating for the company in a research note on Tuesday, October 14th. Finally, Sanford C. Bernstein reaffirmed an “underperform” rating on shares of Fastenal in a research report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $48.73.

Insider Activity at Fastenal

In other news, Director Hsenghung Sam Hsu bought 1,000 shares of the business’s stock in a transaction on Thursday, November 13th. The stock was purchased at an average cost of $49.58 per share, for a total transaction of $49,580.00. Following the completion of the transaction, the director directly owned 10,000 shares of the company’s stock, valued at approximately $495,800. This trade represents a 11.11% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Sarah N. Nielsen bought 1,000 shares of the firm’s stock in a transaction that occurred on Wednesday, November 19th. The shares were purchased at an average cost 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 approximately $198,000. This represents a 25.00% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Company insiders own 0.37% of the company’s stock.

Hedge Funds Weigh In On Fastenal

A number of large investors have recently made changes to their positions in FAST. Coldstream Capital Management Inc. lifted its position in shares of Fastenal by 34.9% in the third quarter. Coldstream Capital Management Inc. now owns 35,489 shares of the company’s stock worth $1,740,000 after purchasing an additional 9,191 shares in the last quarter. Danske Bank A S purchased a new stake in Fastenal in the 3rd quarter worth approximately $28,014,000. Advisory Services Network LLC boosted its stake in shares of Fastenal by 2.9% during the 3rd quarter. Advisory Services Network LLC now owns 41,306 shares of the company’s stock valued at $2,026,000 after buying an additional 1,182 shares during the period. Eaton Financial Holdings Company LLC boosted its stake in shares of Fastenal by 7.0% during the 3rd quarter. Eaton Financial Holdings Company LLC now owns 16,340 shares of the company’s stock valued at $801,000 after buying an additional 1,067 shares during the period. Finally, Financial Engines Advisors L.L.C. purchased a new position in shares of Fastenal during the 3rd quarter valued at $2,076,000. Institutional investors and hedge funds own 81.38% of the company’s stock.

Key Headlines Impacting Fastenal

Here are the key news stories impacting Fastenal this week:

• Positive Sentiment: Management reiterated digital-led growth momentum and operational initiatives that could lift sales and efficiency over time. Fastenal Earnings Call Highlights Digital-Led Growth Momentum
• Positive Sentiment: Cash from operations strengthened materially (management cited a sizable increase), supporting the company’s strong balance sheet and ongoing dividend/capital-return story that underpins investor value. The Nuts and Bolts of Fastenal Earnings—And What Comes Next
• Neutral Sentiment: GAAP EPS of $0.26 was in-line with consensus, showing underlying earnings resilience despite the revenue and margin noise. Fastenal Company Reports 2025 Annual and Fourth Quarter Earnings
• Neutral Sentiment: Management did not issue detailed 2026 guidance but signaled optimism for volume recovery and continued investments (including digital/AI) that could weigh on near-term margins while aiming to drive long-term growth. Fastenal Co (FAST) Q4 2025 Earnings Call Highlights
• Negative Sentiment: Gross-margin pressure was a key negative: management cited higher input and inventory costs (tariff-related headwinds), which compressed margins and raised concerns about pricing power. Fastenal shares slide after Q4 results show margin pressure
• Negative Sentiment: Revenue missed the consensus by about $10M and the market reacted negatively; analysts flagged eroding pricing power and maintained cautious (Hold) stances, limiting upside near term. Fastenal shares fall 4% as Q4 revenue misses expectations Fastenal: Pricing Power Erodes and Margins Disappoint

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.