Caseys 2026 Q2 Earnings Beats Expectations with 14.0% Net Income Growth

Casey's (CASY) reported Q2 2026 earnings that exceeded expectations, with net income rising 14.0% to $206.34 million. The company also raised its fiscal 2026 guidance, reflecting strong performance across all segments.

Revenue

Total revenue surged 14.2% to $4.51 billion in 2026 Q2, driven by robust sales across all business lines. Prepared Food & Dispensed Beverage revenue reached $467.80 million, while Grocery & General Merchandise accounted for $1.19 billion. Fuel sales contributed $2.69 billion, and the "Other" category added $160.36 million, totaling $4.51 billion in total revenue.

Earnings/Net Income

Earnings per share (EPS) rose 14.2% to $5.56 in 2026 Q2 from $4.87 in 2025 Q2, marking continued earnings growth. The EPS growth of 14.2% to $5.56 underscores the company’s strong earnings performance and operational resilience.

Post-Earnings Price Action Review

The strategy of buying Casey’s shares on earnings release dates and holding for 30 days delivered moderate returns but came with significant volatility. Annualized returns averaged 8.5% over three years, though peak-to-trough declines of 20% highlighted the stock’s sensitivity to market fluctuations. While the approach captured growth from consistent earnings, it exposed investors to risks during downturns or disappointing surprises. Investors should weigh the 30-day holding period against their risk tolerance, as shorter horizons may limit long-term gains but reduce exposure to prolonged volatility.

CEO Commentary

Darren Rebelez, Chairman, President, and CEO, emphasized strong sales and traffic growth across all store segments, driven by prepared foods and value propositions. Fuel margin expansion and strategic execution further bolstered performance. The CEO highlighted plans to leverage operational momentum, expand store count by 9%, and maintain margin discipline, aligning with long-term goals.

Guidance

Casey’s updated fiscal 2026 EBITDA guidance to a 15-17% increase, with inside same-store sales growth of 3-4% and margins of 41-42%. The tax rate is projected at 24-25%. Fuel gallon growth remains at -1% to +1%, while operating expenses are expected to rise 8-10%. The company plans to open at least 80 stores via M&A and new construction.

Additional News

Casey’s expanded its store footprint in Q2, adding 16 new locations and acquiring 26 stores, bringing the total to 2,921. The board approved a $0.57 per share dividend, payable February 13, 2026, and repurchased $31 million of shares. RBC Capital raised its price target to $591 from $570, citing strong gas margins and operational execution.