FASTENAL CO Earnings Summary — Q2 2026

• Revenue growth accelerated to 14.74% YoY in Q2 2026, marking a significant step up from the 8.56% YoY growth recorded in the same period last year.
• The company demonstrated strong operational leverage, with Net Income growth (15.90%) outpacing Revenue growth (14.74%).
• Onsite and Large Account performance remains the primary growth engine, with sites spending over $50k per month now accounting for over half of total sales.
• International markets, specifically Europe and Asia, show accelerating momentum with growth rates significantly outperforming the North American baseline.
• Operating margins expanded to 21.0%, benefitting from increased sales density and effective SG&A management despite a challenging manufacturing environment.
• Market share gains continue to be driven by FMI (Fastenal Managed Inventory) technology and digital tool integration with key national accounts.

Management is targeting approximately 250 new national account contract signings for the full year 2026. They remain committed to a strategic focus on deeply embedding services into large customer facilities (Onsites) rather than a 'one-size-fits-all' approach, expecting this to drive continued market share gains despite a moderate U.S. Manufacturing PMI.

Improving

The company has transitioned from the low-single-digit growth rates seen in early 2024 to three consecutive quarters of double-digit revenue gains, suggesting a successful execution of the Onsite expansion strategy.

The outlook remains constructive as the company leverages a 'trickle-down' effect where technology solutions developed for large accounts are scaled to smaller customers. Continued investment in global supply chains is expected to sustain high-double-digit growth in international segments.