Caseys 2026 Q2 Earnings 14.0% Net Income Growth Drives Strong Performance

Casey's (CASY) reported fiscal 2026 Q2 earnings on Dec 9, 2025, exceeding expectations with robust revenue and profit growth. The company raised its full-year guidance, reflecting confidence in sustained operational momentum.

Revenue

Casey's total revenue surged 14.2% year-over-year to $4.51 billion in 2026 Q2, driven by strong performance across all segments. Fuel sales led the charge with $2.69 billion, while Grocery & General Merchandise contributed $1.19 billion. Prepared Food & Dispensed Beverage revenue reached $467.80 million, underscoring growing demand for in-store dining options. Additional revenue streams, including the "Other" category, added $160.36 million to the total.

Earnings/Net Income

Earnings per share (EPS) climbed 14.2% to $5.56, with net income expanding 14.0% to $206.34 million. This marks the company’s 20th consecutive year of profitability in the quarter, a testament to disciplined cost management and strategic pricing. The consistent earnings growth highlights Casey's ability to balance volume and margin expansion.

Price Action

Post-Earnings Price Action Review

A backtested strategy of purchasing Casey's shares following a revenue increase quarter-over-quarter and holding for 30 days yielded a 119.40% return over three years, outperforming the 67.70% benchmark. This 51.71% excess return underscores the stock’s responsiveness to positive earnings surprises. The Sharpe ratio of 1.17, coupled with a 0.00% maximum drawdown, demonstrates the strategy’s risk-adjusted effectiveness.

CEO Commentary

Darren Rebelez, CEO of Casey’s, attributed the quarter’s success to strategic store expansion and a value-driven customer proposition. With 9% more stores operating compared to the prior year, the company achieved 3.3% same-store sales growth and a 41.6-cent fuel margin per gallon. Rebelez emphasized confidence in Casey’s long-term momentum, driven by its diversified revenue streams and operational agility.

Guidance

Casey’s updated its 2026 outlook, projecting EBITDA growth of 15%-17%, same-store sales of 3%-4%, and a fuel margin of 41%-42%. The company plans to open at least 80 new stores through M&A and construction, with operating expenses rising 8%-10%. Tax rate guidance remains at 24%-25%.

Additional News

Within three weeks of Casey’s earnings release, the company announced plans to accelerate store growth via M&A, targeting 80 new locations in 2026. This aligns with its updated guidance and reflects a strategic focus on geographic expansion. Additionally, Casey’s reiterated its commitment to maintaining a 41%+ fuel margin while expanding prepared food offerings, a key differentiator in competitive retail markets. No dividend or buyback adjustments were disclosed, but the company emphasized reinvestment in operational scalability.