Comparable Store Sales Decline
Comparable store sales decreased 1.5%, with a 1.7% drop in transaction count and a 0.2% increase in average ticket; May was particularly weak due to softness in seasonal and big-ticket items.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Tractor Supply's second quarter fiscal 2026 results were defined by a return to comparable store sales declines, as a 1.5% drop in comps, driven by soft seasonal and big-ticket sales, offset the benefit of new store openings. Reported profits were heavily impacted by a $81.2 million impairment and acquisition charge tied to the Petsense restructuring and the VIP Petcare deal, causing operating income to fall 19.2% on a GAAP basis. Excluding these one-time items, adjusted operating income still decreased 5.1%, as expense deleverage from the comp decline and higher medical claims weighed on margins, though gross margin expanded modestly.
Revenue
$4.54B
+2.29% YoY
EPS (Diluted)
$0.69
-14.81% YoY
Gross Margin
37.1%
+0.1 pts YoY
Operating Income
$467.12M
-19.16% YoY
Source: SEC XBRL
Tractor Supply (TSCO) reported Q2 FY2026 revenue of $4.54B, up 2.3% year over year. Operating margin was 10.3%, down 2.7 points from 13.0% a year earlier. TSCO's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 0 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 0.81 | 0.83 | Miss -2.8% |
| Mar 2026 | 0.31 | 0.35 | Miss -11.2% |
| Dec 2025 | 0.43 | 0.47 | Miss -8.9% |
| Sep 2025 | 0.49 | 0.49 | Miss -0.4% |
Adjusted (non-GAAP) EPS of $0.81 versus the $0.83 analyst consensus — a -2.8% miss for Jun 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.69.
Compiled by AI from 10-Q Item 2 of this filing
Comparable store sales decreased 1.5%, with a 1.7% drop in transaction count and a 0.2% increase in average ticket; May was particularly weak due to softness in seasonal and big-ticket items.
Source: 10-Q Item 2 MD&A
The Petsense business incurred $65.8 million in impairment and other charges, including $5.9 million of inventory write-down and $33.2 million of goodwill impairment, as part of a plan to close approximately 75 stores.
Source: 10-Q Item 2 MD&A
Gross margin expanded 11 basis points to 37.1% (24 basis points on an adjusted basis to 37.2%), driven by disciplined product cost management and tariff-related benefits, partially offset by higher freight costs.
Source: 10-Q Item 2 MD&A
The company opened 28 new Tractor Supply stores in Q2, bringing the fiscal year-to-date total to 68 versus 39 last year, and plans to open approximately 100 for the full year.
Source: 10-Q Item 2 MD&A
During Q2, Tractor Supply repurchased $135.3 million in shares (3.9 million shares at $34.92 average) and paid $125.6 million in dividends, returning a total of $260.9 million to shareholders.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 0 high, 5 medium, 0 low
A 1.5% decline in comparable store sales, driven by softness in seasonal and big-ticket items, could continue if consumer spending weakens, impacting top-line growth.
Source: 10-Q Item 2 MD&A
The Petsense restructuring and VIP Petcare acquisition involve significant one-time charges and operational integration risks; failure to realize expected benefits could pressure earnings.
Source: 10-Q Item 2 MD&A
Adjusted SG&A as a percent of sales increased 118 basis points due to deleverage from lower comps and higher medical claims and legal settlements, which may continue to erode profitability if sales growth remains sluggish.
Source: 10-Q Item 2 MD&A
The company's performance is highly sensitive to weather patterns; unseasonable conditions can adversely affect sales and inventory management, as seen in the May comp decline.
Source: 10-Q Item 2 MD&A
Total debt rose to $2.15 billion, with the revolving credit facility drawn to $620 million to fund acquisitions and buybacks, raising the debt-to-equity ratio to 3.62 and amplifying financial risk if cash flows weaken.
Source: 10-Q Balance Sheet (XBRL) and MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 4.54 $B | 4.44 $B | +2.29% |
Cost of Revenue $B | 2.86 $B | 2.80 $B | +2.11% |
Gross Profit $B | 1.68 $B | 1.64 $B | +2.60% |
Operating Income $M | 467.12 $M | 577.81 $M | -19.16% |
Net Income $M | 360.72 $M | 430.04 $M | -16.12% |
EPS (Basic) $ | 0.69 $ | 0.81 $ | -14.81% |
EPS (Diluted) $ | 0.69 $ | 0.81 $ | -14.81% |
SG&A Expense $B | 1.02 $B | 0.94 $B | +8.71% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
Tractor Supply Company (TSCO) delivered modest FY2025 revenue growth of 4.3% to $15.5B, but net income slipped 0.5% to $1.10B as SG&A expenses rose 6.1%, compressing operating margins slightly while strong operating cash flow of $1.64B supported continued dividends and share buybacks.
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