Tractor Supply (TSCO) Q4 2025 earnings summary

Executive summary

• Fourth quarter net sales rose 3.3% year-over-year to $3.90B, with comparable store sales up 0.3% amid resilient essential categories and softer discretionary demand.

• Fiscal year 2025 net sales increased 4.3% to $15.52B, with comparable store sales up 1.2% and diluted EPS at $2.06, driven by new store growth and strategic investments.

• Opened 99 new Tractor Supply stores and five new Petsense stores in 2025, expanding total store count to 2,602.

• Customer engagement and retention remained strong, with Neighbor's Club representing over 80% of sales.

• Digital business delivered high single-digit growth, supported by technology investments and Allivet integration.

Financial highlights

• Q4 gross margin was 35.1% (down 10 bps YoY); SG&A rose to 27.5% of sales due to investments and fixed cost deleverage.

• Q4 operating income declined 6.5% YoY to $297.7M; net income was $227.4M, with diluted EPS at $0.43.

• FY 2025 gross margin was 36.4% (up 10-16 bps YoY); SG&A expenses increased to 27.0% of sales.

• FY 2025 operating margin was 9.5% (down from 9.9%); net income was $1.10B, with diluted EPS at $2.06.

• Average ticket increased 0.3% in Q4, driven by retail inflation.

Outlook and guidance

• Fiscal 2026 net sales expected to grow 4%-6%, with comparable store sales up 1%-3%.

• Operating margin rate projected at 9.3%-9.6%; net income guidance of $1.11B-$1.17B.

• Diluted EPS forecasted at $2.13-$2.23; effective tax rate assumed at 22%.

• Net capital spending planned at $675M-$725M, focused on growth initiatives and 100 new store openings.

• Share repurchases expected between $375M-$450M, about 1%-1.5% of shares outstanding.