Fastenal Company stock research
FY2026 Q1
Fastenal (FAST) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin improved sequentially but weakened relative to the year-ago period, indicating that recent cost growth outpaced revenue growth on a year-over-year basis.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue also increased. Gross margin improved sequentially but weakened relative to the year-ago period, indicating that recent cost growth outpaced revenue growth on a year-over-year basis.
- The most observable margin driver is the sequential gross margin improvement, which accompanied higher revenue and a slower increase in cost of revenue. The filing context highlights a focused effort to optimize inventory levels, making inventory management a concrete item to watch.
- Compared to the prior quarter, gross margin was higher, supported by a proportionally smaller rise in cost of revenue. Versus the same quarter one year ago, gross margin was lower, as the cost of revenue grew at a faster pace relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
44.6%
Gross profit
$982.9M
Revenue
$2.2B
Cost of revenue
$1.2B
Quarter-over-quarter change
+0.3 pts
Year-over-year change
-0.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $2.1B | $942.8M | $1.1B | 45.3% |
| Sep 30, 2025 | $2.1B | $965.8M | $1.2B | 45.3% |
| Dec 31, 2025 | $2.0B | $898.7M | $1.1B | 44.3% |
| Mar 31, 2026 | $2.2B | $982.9M | $1.2B | 44.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+0.3 pts
Year-over-year change
Mar 31, 2025
-0.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the sequential gross margin improvement, which accompanied higher revenue and a slower increase in cost of revenue. The filing context highlights a focused effort to optimize inventory levels, making inventory management a concrete item to watch.
Compared to the prior quarter, gross margin was higher, supported by a proportionally smaller rise in cost of revenue. Versus the same quarter one year ago, gross margin was lower, as the cost of revenue grew at a faster pace relative to revenue.
Monitor inventory levels and the company's stated efforts to optimize them, as changes in inventory can influence cost of revenue and gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Fastenal Company (FAST) | 44.6% |