Fastenal sales continued to grow in its fiscal Q2 2026, fueled in part by its digital footprint, as it completed a CEO transition shortly after the quarter ended.
Fastenal describes its digital footprint as “a combination of our sales through FMI (FASTStock, FASTBin, and FASTVend) plus that portion of our eBusiness sales that does not represent billings of FMI services.”
In its fiscal Q2 2026, which ended June 30, Fastenal reported about $2.39 billion in net sales. That’s a 14.4% increase compared to about $2.08 billion in Q1 2025.
Fastenal’s daily sales grew 14.7% during Q2. Fastenal’s number of contracts in Q2 increased 7% year over year, chief sales officer Jeffery Watts told analysts on the company’s Q2 earnings call.
Additionally, the number of customer sites spending $50,000 or more per month increased 16.5% compared to the prior year. Meanwhile, revenues grew by more than 26%.
“That’s the shape of durable, high-quality revenue, larger customers, deeper contracts and higher productivity per site,” Watts said. “It’s exactly what our key account strategy is designed to produce, and it’s the foundation of the momentum we’re using to carry into the second half of this year.”
Incoming Fastenal CEO
In December 2025, Fastenal announced that Watts would take over for CEO Daniel Florness. That takeover became effective July 16, 2026. Fastenal held its Q2 earnings call on July 14.
“The Board of Directors would like to recognize Dan for his impressive 30 years of service to Fastenal and commend him on the shareholder value he has helped create while CEO over the past 10 years,” said Scott Satterlee, Fastenal’s board chair, in the December announcement. “This transition represents the next step in an orderly succession plan that began in August 2024, when Jeff Watts stepped into the role of President of Fastenal.”
In the same statement, Florness called Fastenal “blessed with great people.” He said it was “an honor” to be with the company for 30 years.
On the July earnings call, Watts called Florness “the steady voice explaining our business to this community for the past three decades.”
Florness joined Fastenal in 1996 and became CEO in 2026. He expects to continue serving Fastenal as a strategic advisor to Watts in early 2028.
“Through multiple cycles, multiple recessions, a pandemic, trade shift, stock splits, through all of it, Dan’s always had the same candor, the same humility and the same unwavering respect for our people and for our shareholders,” Watts said.
Fastenal digital sales in Q2 2026
The daily sales rate from Fastenal’s digital footprint grew 16.2% year over year in Q2.
That outpaced the company’s total daily sales rate. Fastenal’s digital footprint also represented 61.6% of total sales in Q2. That’s up 0.6% from the year before.
Watts said Fastenal estimates its digital footprint will represent 63% to 64% of total sales for the full fiscal 2026. He characterized that as “modestly below” Fastenal’s original target of 66%.
“We’re not slowing down on digital adoption,” Watts said. “We’re still driving customers to digital at a very strong pace. It’s really the denominator is simply moving faster because our non-digital sales are growing right alongside digital as we take share and add larger and larger customer sites. And to me, I guess that’s a healthy problem to have.”
He said Fastenal’s eBusiness daily sales rate grew 12.6% in Q2. Meanwhile, FMI technology signings increased 8.3% year over year. That totaled nearly 7,000 signings for the quarter, Watts said.
FMI sales represented 44.6% of total Fastenal sales in Q2.
“Devices installed today are deposits into next quarter’s sales, into next year’s retention and into the operational rigor and efficiency that show up in our margin structure,” Watts said. “Now Fastenal has never had more contract customers, more large customer sites, more devices in the field or more digital engagement than we do today. This is what durable, scalable growth looks like, and why we’re so confident in our pathway forward.”
Fastenal’s macroeconomic challenges in Q2
“Customer sentiment remained favorable throughout the quarter,” said chief financial officer Max Tunnicliff. “While trade and tariff uncertainty stayed in the picture, its impact this quarter showed up through cost planning and pricing discussions rather than demand.”
He said Fastenal’s pricing actions helped to offset “the ongoing impacts of tariffs and other inflation.”
“We remain focused on pricing discipline and we’ll continue managing toward price/cost neutrality over time,” Tunnicliff said. “Beyond price/cost, we also experienced smaller gross margin headwinds from customer mix, transportation costs and customer rebates during the quarter.”
Tunnicliff said if fuel and associated oil-related costs decline further in the second half of the year, Fastenal will see improvements in its incremental metrics.
“But fuel is one of those that we’re actually — given the amount of volatility, we’re managing very well on the fuel side,” Tunnicliff said. “It’s still a headwind.”
When Fastenal’s Q2 ended, the price of a barrel of crude oil hovered around $55. By the time Fastenal reported earnings, that price climbed to about $80. For comparison, it was about $66 when the United States and Israel began their war with Iran at the end of February, according to historical data from Trading Economics.
Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s update about Fastenal digital sales.
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