Baird Turns Slightly More Bullish on Fastenal (FAST) After April Data Review

With a 5-year average dividend growth rate of 11.66%, Fastenal Company (NASDAQ:FAST) is included among the 14 Best Dividend Stocks to Buy for Steady Growth.

On May 7, Baird raised its price recommendation on Fastenal Company (NASDAQ:FAST) to $51 from $50. It reiterated an Outperform rating on the shares. The firm updated its model after reviewing April tracker results.

During its Q1 2026 earnings call, Fastenal said the company posted a strong start to the year and recorded its third consecutive quarter of double-digit growth. President and Chief Sales Officer Jeffery Watts said daily sales increased 12.4% year-over-year to $34.9 million per day.

Watts also said total contract count climbed nearly 8% from a year earlier to more than 3,600 contracts. Those customers accounted for about 75% of first-quarter sales. He added that operating margin improved by 20 basis points year-over-year to 20.3%. Senior Executive Vice President and CFO Max Tunnicliff said gross margin came in around 40 basis points below the company’s internal Q1 target, as pricing actions did not fully offset rising costs during the quarter.

Tunnicliff also noted that operating cash flow reached about $378 million, equal to 111% of net income. He added that the company returned $296 million to shareholders during the quarter through dividends and limited share repurchases intended to offset dilution.

Fastenal Company (NASDAQ:FAST) is engaged in the wholesale distribution of industrial and construction supplies.

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