Tractor Supply Sales Increase 5.1% as Net Income Drops 13.3%

Tractor Supply Company’s fiscal third-quarter net sales rose 5.1% to $3.91 billion, while net income fell 13.3% to $224.7 million as gross margin narrowed and comparable-store growth slowed.

Net sales were $3.910 billion for the quarter ended Sept. 26, 2026, up from $3.719 billion a year earlier. Comparable-store sales increased 0.4%, compared with 3.9% growth in the year-earlier quarter. Comparable average ticket rose 0.7%, while comparable transaction count declined 0.3%.

Gross margin was 36.4%, down from 37.4% a year earlier. Higher transportation and fuel costs, along with incremental investments to strengthen the company’s price-value position, were cited alongside the narrower margin. The one-percentage-point decline came as operating income fell 10.2% to $307.7 million.

Diluted earnings per share were $0.43, down 11.6% from $0.49 in the same quarter last year. Net income’s 13.3% decline was steeper than the drop in operating income. Together, the figures show that higher sales coincided with lower profit and a weaker margin than a year earlier.

Tractor Supply reaffirmed its fiscal 2026 outlook. The company expects net sales growth of 2.5% to 3.5% and diluted EPS of $1.78 to $1.88. Its adjusted diluted EPS outlook remains $1.90 to $2.00.