Tractor Supply Co. said it broadened its use of artificial intelligence (AI), grew its ecommerce sales, and continued building out its delivery network in 2025, even as a quieter storm season and heavier holiday promotions weighed on Q4 profit.
CEO Hal Lawton told analysts that the rural lifestyle retailer expanded its use of AI across the company, including a deeper relationship with OpenAI, to improve forecasting, inventory flow and employee productivity. He said the company’s digital business grew at a high single-digit rate in the quarter and for the full year, supported by better personalization, stronger online conversion and improved delivery capabilities.
Lawton said Tractor Supply is investing in tools that connect stores, distribution centers and online orders more tightly, allowing the company to manage larger and more complex purchases through its digital channels. These investments include a rapidly expanding final-mile delivery network designed to lower the cost of serving online orders and support customers buying bulky items such as feed, fencing and outdoor equipment.
Tractor Supply is No. 87 in the Top 2000 Database rankings. The database tracks North America’s largest online retailers, measuring their annual ecommerce sales and more.
Tractor Supply sales in Q4 2025
Tractor Supply ended 2025 with more than 210 delivery hubs serving one-quarter of its stores and plans to expand that to about 375 hubs by the end of 2026, covering more than half its locations. The network also supports the company’s growing direct sales effort and its ability to fulfill digital orders from stores closer to customers.
The company’s Neighbor’s Club loyalty program continued to play a significant role in its digital engagement, with members accounting for more than 80% of sales, Lawton said.
Tractor Supply reported Q4 sales of $3.90 billion, up 3.3% from $3.77 billion a year earlier. Sales at existing stores rose 0.3%.
Net income for the quarter fell to $227.4 million, down 3.8% from $236.4 million a year earlier.
For its full fiscal year 2025, Tractor Supply posted sales of $15.52 billion, up 4.3% from $14.88 billion in 2024. Sales at existing stores rose 1.2%. Full-year net income was $1.10 billion, unchanged from the prior year.
Lawton said Q4 results fell short of expectations as shoppers focused more on essentials and pulled back on discretionary items. The company also faced a tougher comparison after storm-related demand boosted results a year earlier. Holiday and seasonal categories underperformed amid a more promotional retail environment.
Tractor Supply said it will continue investing in technology, ecommerce capabilities, delivery infrastructure and newer initiatives such as direct sales and pet and animal prescriptions. The company said Allivet, its online pet and animal pharmacy, generated about $100 million in sales in 2025.
For 2026, Tractor Supply expects sales to grow 4% to 6%. It also plans to open about 100 new stores while continuing store remodels and distribution center projects aimed at supporting its growing digital and omnichannel operations.
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