Casey’s Delivers Record Fiscal 2026 Results as Growth Momentum Remains Strong

Casey’s General Stores, Inc. (Nasdaq: CASY) recently delivered a stellar performance for the fourth quarter and full fiscal year 2026, solidifying its place as a high-performing retail compounder. Boasting record-high net income, a prestigious addition to the S&P 500 Index, and a robust expansion roadmap, the fundamentals of the company have rarely looked stronger.

A Record-Breaking Fiscal 2026

The company reported fiscal 2026 revenue of $17.56 billion, an increase of 10.2% from the prior year, while net income climbed 30.7% to a record $714.4 million. Diluted earnings per share rose 30.9% to $19.16, and EBITDA increased 23.6% to nearly $1.5 billion.

Management emphasized that fiscal 2026 marked the successful completion of its three-year strategic plan, with strong contributions from prepared foods, beverages, loyalty programs, and fuel profitability.

A key driver of Casey’s performance was continued strength in inside sales. Fiscal-year inside sales increased to $6.34 billion from $5.76 billion a year earlier, while inside same-store sales grew 4.2%. Prepared food and dispensed beverage same-store sales advanced 5.2%, reflecting continued demand for pizza, fresh donuts, sandwiches, and beverages. Grocery and general merchandise same-store sales rose 3.9%.

Inside gross profit increased 12.0% to $2.68 billion, while inside margin expanded to 42.2% from 41.5% in the prior year.

Fuel operations also delivered impressive results. Fiscal-year fuel gallons sold increased 10.0% to 3.52 billion gallons, while same-store gallons sold rose 1.4%. Fuel gross profit surged 21.0% to $1.50 billion as fuel margins expanded to 42.6 cents per gallon from 38.7 cents a year earlier.

Expansion remained another major growth catalyst. Casey’s ended fiscal 2026 with 2,944 stores, up from 2,904 a year earlier. During the year, the company added 40 newly constructed stores, completed 40 acquisitions, and opened one previously acquired location. The company has built a differentiated business model centered on serving smaller communities, with roughly two-thirds of its stores located in towns with populations of 20,000 or fewer.

Q4 2026 Performance

Total revenue increased 14.5% year-over-year to $4.57 billion during the quarter, while gross profit climbed 16.6% to $1.08 billion. Gross margin expanded to 23.6% from 23.2% a year earlier, reflecting stronger profitability across the company's key operating segments.

Prepared Food & Dispensed Beverage revenue increased 9.2% to $427.6 million, while gross profit grew 12.3% to $254.2 million. Segment gross margin expanded from 57.8% to 59.5%.

Grocery & General Merchandise revenue rose 6.7% to $1.09 billion, with gross profit increasing 9.3% to $389.2 million. Segment gross margin improved from 34.8% to 35.7%.

Fuel remained a major earnings contributor. Fuel revenue increased 18.3% to $2.88 billion, while fuel gross profit surged 29.1% to $397.4 million. Fuel gross margin improved from 12.6% to 13.8%.

The biggest highlight for Q4 2026 was earnings growth. Diluted earnings per share surged 66.2% to $4.37, while net income jumped 65.5% to $162.7 million. EBITDA increased 33.2% to $350.3 million, substantially outpacing revenue growth and underscoring management's ability to convert sales gains into higher profitability.

Strong Cash Generation Supports Capital Returns

Cash generation remained healthy. Operating cash flow reached $1.38 billion during fiscal 2026, while free cash flow totaled $721.6 million after capital expenditures of approximately $656 million. Casey’s ended the year with approximately $523 million in cash and total available liquidity of roughly $1.4 billion. Total debt stood at $2.43 billion at year-end.

Shareholder returns also remained a priority. The company repurchased approximately $63 million of stock during the fourth quarter and expanded its share repurchase authorization to $1 billion. In addition, Casey’s increased its quarterly dividend by 14% to $0.65 per share, marking its 27th consecutive year of dividend growth.

Fiscal 2027 Outlook

Looking ahead, management expects fiscal 2027 inside same-store sales growth of 2% to 5%, with inside margin remaining above 42%. Same-store fuel gallons sold are expected to range between down 1% and up 1%, while EBITDA is projected to increase 8% to 10%. Plans to open at least 120 stores in fiscal 2027 through a combination of M&A and new store construction. The company also expects approximately $800 million in capital expenditures.

CASY Stock Technical Analysis

From a technical perspective, CASY stock remains in a constructive long-term uptrend. The key resistance level to watch is $872. A decisive breakout and sustained move above $872 could open the door for the next upside target near $920.

However, if shares fail to hold above resistance, investors may see a profit-taking or pullback toward the primary support zone around $790. Should selling pressure intensify, the next major support area sits between $759 and $739.