Tractor Supply (TSCO) Q1 2026 earnings summary

Executive summary

• Net sales rose 3.6% year-over-year to $3.59 billion, driven by record new store openings and modest comparable store sales growth.

• Comparable store sales increased 0.5%, with average ticket up 1.6% and transactions down 1%.

• Net income declined 8.3% to $164.5 million, with diluted EPS at $0.31, down 7.2% year-over-year.

• Gross margin remained flat at 36.2%, with cost management offset by higher tariffs and delivery costs.

• Digital business grew double digits, with strong traffic and conversion improvements.

Financial highlights

• Gross profit increased 3.6% to $1.30 billion; gross margin held steady at 36.2%.

• SG&A expenses rose 6.1% to $1.07 billion, representing 29.7% of net sales.

• Operating income declined 6.3% to $233.4 million; operating margin dropped to 6.5%.

• Cash flow from operations was $91.1 million, down from $216.8 million a year ago.

• Capital expenditures totaled $202.6 million, up from $141.3 million in the prior year.

Outlook and guidance

• Full-year 2026 guidance reaffirmed, targeting 1%-3% comp sales growth and net sales growth of 4%-6%.

• Operating margin rate expected between 9.3% and 9.6%.

• Net income forecasted at $1.11 billion to $1.17 billion; diluted EPS of $2.13 to $2.23.

• Gross margin expected to strengthen in the second half as new distribution center comes online.

• No incremental benefit from tariff refunds assumed in outlook.