Tractor Supply Beats Q3 Estimates, Stock Gains 4% as Company Reaffirms Full-Year Guidance

Tractor Supply reported third-quarter 2026 net sales of $3.91 billion, up 5.1% year-over-year and well ahead of the $3.81 billion Wall Street consensus. Adjusted EPS of $0.43 beat estimates of $0.41 by two cents, while comparable store sales rose 0.4%, driven by a 0.7% increase in average ticket price that more than offset a 0.3% decline in transaction count.

Profitability came under pressure, however, as gross margin contracted 100 basis points year-over-year to 36.4%, weighed down by elevated transportation and fuel costs along with investments in price-value positioning. Operating income fell 10.2% to $307.7 million and net income dropped 13.3% to $224.7 million, with GAAP EPS of $0.43 representing an 11.6% decline from the prior-year quarter.

Despite the margin headwinds, management reaffirmed its full-year FY2026 outlook, projecting net sales growth of 2.5% to 3.5%, comparable store sales in a range of negative 1% to flat, adjusted EPS of $1.90 to $2.00, adjusted net income of $990 million to $1.05 billion, and an adjusted operating margin of 8.5% to 8.8%. The company opened 23 new Tractor Supply stores in the quarter while closing 74 Petsense locations, and returned $213.4 million to shareholders through $88.5 million in buybacks and $124.9 million in cash dividends. TSCO shares rose more than 4% on the day.