Casey's General Stores Inc (NASDAQ:CASY) Surpasses Q1 Earnings Estimates with Strong Fuel and Inside Sales Growth

Casey's General Stores Inc (NASDAQ:CASY) delivered a robust first-quarter performance for fiscal 2026, surpassing analyst expectations on both revenue and earnings per share. The convenience store chain reported strong growth across its fuel and inside sales segments, driving investor optimism as shares moved higher following the earnings release.

Earnings Performance Versus Estimates

The company reported revenue of $4.57 billion for the quarter ended July 31, 2025, slightly exceeding the analyst consensus estimate of $4.57 billion. More notably, Casey's posted diluted earnings per share of $5.77, significantly outperforming the estimated $5.14. This represents a 19.5% increase in EPS compared to the same period last year, reflecting improved operational efficiency and margin management.

Key financial highlights from the quarter include:

• Net income of $215.4 million, up 19.5% year-over-year
• EBITDA of $414.3 million, increasing 19.8% from the prior year
• Total inside gross profit growth of 14.8% to $705.5 million
• Fuel gross profit increase of 18.8% to $373.6 million

Operational Highlights

Same-store sales showed particular strength, with inside comparable sales rising 4.3% compared to the prior year. The prepared food and dispensed beverage category led this growth with a 5.6% same-store sales increase, while grocery and general merchandise posted a 3.8% gain. The company maintained healthy margins, with inside margin reaching 41.9%, up approximately 20 basis points from the previous year.

Fuel operations also demonstrated solid performance, with same-store gallons sold increasing 1.7% year-over-year. The company achieved a fuel margin of 41.0 cents per gallon, slightly improved from 40.7 cents per gallon in the prior year period.

Market Reaction and Outlook

The market responded positively to these results, with the stock showing upward momentum in after-hours trading. This reaction reflects investor confidence in Casey's ability to exceed expectations while maintaining growth across both its retail and fuel operations.

Looking ahead, management maintained its fiscal 2026 outlook, expecting:

• EBITDA growth of 10% to 12%
• Inside same-store sales increase of 2% to 5%
• Same-store fuel gallons sold ranging from -1% to +1%
• Total operating expenses growth of approximately 8% to 10%

The company plans to open at least 80 new stores during fiscal 2026 through a combination of acquisitions and new construction, continuing its strategic expansion plan.

Liquidity and Capital Allocation

Casey's demonstrated strong financial positioning with approximately $1.4 billion in available liquidity at quarter-end. The company remained active in returning capital to shareholders, repurchasing $31 million worth of shares during the quarter while maintaining a quarterly dividend of $0.57 per share.

For investors seeking more detailed earnings information and future estimates, comprehensive data is available through the company's earnings portal.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.