FA

Fastenal Company stock research

Sep 30, 2025

FY2025 Q3

Fastenal (FAST) Gross Margin — Quarter Ended Sep 30, 2025

Revenue was stable compared to the prior quarter while gross profit increased, with cost of revenue also rising. Gross margin remained unchanged from the previous quarter but improved relative to the same quarter one year earlier.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

Revenue was stable compared to the prior quarter while gross profit increased, with cost of revenue also rising. Gross margin remained unchanged from the previous quarter but improved relative to the same quarter one year earlier.

  • The year-over-year improvement in gross margin is the most observable driver, supported by higher gross profit on increased revenue. Monitoring cost trends is warranted as cost of revenue rose sequentially while revenue stayed level.
  • Compared to the prior quarter, gross margin was stable as revenue held steady. Year over year, gross margin and revenue both were higher, with gross profit growing at a faster pace than cost of revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

45.3%

Gross profit

$965.8M

Revenue

$2.1B

Cost of revenue

$1.2B

Quarter-over-quarter change

-0.0 pts

Year-over-year change

+0.3 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$1.8B$818.2M$1.0B44.8%
Mar 31, 2025$2.0B$883.9M$1.1B45.1%
Jun 30, 2025$2.1B$942.8M$1.1B45.3%
Sep 30, 2025$2.1B$965.8M$1.2B45.3%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2025

-0.0 pts

Year-over-year change

Sep 30, 2024

+0.3 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The year-over-year improvement in gross margin is the most observable driver, supported by higher gross profit on increased revenue. Monitoring cost trends is warranted as cost of revenue rose sequentially while revenue stayed level.

Compared to the prior quarter, gross margin was stable as revenue held steady. Year over year, gross margin and revenue both were higher, with gross profit growing at a faster pace than cost of revenue.

Monitor whether cost of revenue continues to increase sequentially without a corresponding rise in revenue, which could pressure gross margin.