AI Takeaway
TSCO reported Q1 FY2026 revenue growth of 3.6% to $3.59B, but profitability declined with net income falling 8.3% to $164.5M as SG&A expenses surged 6.2%, compressing operating and net margins.
Revenue
$3.59B
++3.61% YoY
EPS (Basic)
$0.31
-8.82% YoY
Gross Margin
36.2%
++0.01% YoY
Operating Income
$233.43M
-6.30% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue grew 3.6% year-over-year to $3.59B in Q1 FY2026, up from $3.47B in the prior-year period, indicating continued demand for Tractor Supply's farm and ranch products despite a challenging consumer environment.
Source: Source: 10-Q Income Statement
SG&A expenses rose 6.2% year-over-year to $941.2M, significantly outpacing revenue growth of 3.6%, which compressed operating margin by approximately 69 basis points to 6.50% from 7.19% in the prior year.
Source: Source: 10-Q Income Statement
Gross margin held essentially flat at 36.22% versus 36.21% in the prior-year quarter, suggesting the company maintained pricing discipline and managed cost of goods sold effectively even as overall costs rose.
Source: Source: 10-Q Key Ratios
2 more insights available
Upgrade to unlockSG&A expenses grew 6.2% while revenue grew only 3.6%, creating a widening cost gap that compressed operating margin to 6.50%. If this trend continues, profitability could deteriorate further, especially if revenue growth slows.
Source: Source: 10-Q Income Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.31 versus the $0.35 analyst consensus — a -11.2% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.59B | $3.47B | +3.61% |
Cost of Revenue | $2.29B | $2.21B | +3.59% |
Gross Profit | $1.3B | $1.26B | +3.65% |
Operating Income | $233.43M | $249.14M | -6.30% |
Net Income | $164.52M | $179.37M | -8.28% |
EPS (Basic) | $0.31 | $0.34 | -8.82% |
EPS (Diluted) | $0.31 | $0.34 | -8.82% |
SG&A Expense | $941.15M | $886.21M | +6.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.66B | $10.39B | +12.29% |
Current Assets | $4.04B | $3.66B | +10.54% |
Total Liabilities | $9.15B | $8.15B | +12.29% |
Current Liabilities | $2.93B | $2.6B | +12.66% |
Stockholders' Equity | $2.51B | $2.24B | +12.29% |
Cash & Equivalents | $224.27M | $231.72M | -3.21% |
Long-Term Debt | $2.13B | $2.08B | +2.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $91.12M | $216.78M | -57.97% |
Investing Cash Flow | $-171.34M | $-261.05M | +34.37% |
Financing Cash Flow | $110.38M | $24.5M | +350.42% |
Dividends Paid | $126.38M | $122.4M | +3.25% |
Share Buybacks | $118.02M | $95.08M | +24.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 36.2% | 36.2% | +0.01% |
Operating Margin | 6.5% | 7.2% | -0.69% |
Net Margin | 4.6% | — | — |
ROE | 6.5% | — | — |
ROA | 1.4% | — | — |
Current Ratio | $1.38 | — | — |
Debt to Equity | $3.639 | — | — |
Other companies in Other Specialty Retail
TSCO reported Q1 FY2026 revenue of $3.59B, up 3.6% year-over-year, but net income fell 8.3% to $164.5M as SG&A expenses surged 6.2%. Diluted EPS came in at $0.31, down from $0.34 in the prior-year quarter.
TSCO's profits declined primarily because SG&A expenses grew 6.2% to $941.2M, significantly outpacing revenue growth of 3.6%, which compressed operating margin to 6.50% from 7.19%. This cost pressure drove operating income down 6.3% and net income down 8.3%.
TSCO's operating cash flow fell sharply by 58.0% to $91.1M from $216.8M in Q1 FY2025, which is a notable deterioration. With investing outflows of $171.3M, the company's implied free cash flow was negative, and it relied on financing activities to fund dividends and buybacks.
Yes, TSCO paid $126.4M in dividends (up 3.3% YoY) and repurchased $118.0M in shares (up 24.1% YoY) during Q1 FY2026. However, these combined shareholder returns of $244.4M exceeded operating cash flow of $91.1M, suggesting the company used debt or cash reserves to fund them.
TSCO's balance sheet shows total assets of $11.66B against total liabilities of $9.15B, resulting in a debt-to-equity ratio of 3.64x, which is elevated. The current ratio of 1.38x suggests adequate short-term liquidity, but the sharp drop in operating cash flow and high leverage are key areas to monitor.