Stanley Black & Decker (SWK) Q3 2026 Earnings
Both GAAP ($1.83) and adjusted EPS include a benefit of approximately $0.67 from net IEEPA tariff refunds. Adjusted EPS excludes $89.3 million of pre-tax non-GAAP adjustments, including $29.5 million of restructuring charges, a $19.7 million asset impairment charge, a $20.4 million loss on the sale of a small Engineered Fastening business, and $16.6 million of footprint-related charges in gross profit.
How Did SWK Stock React to Q3 2026 Earnings?
Did SWK Beat Earnings? Q3 2026 Results
Yes. Stanley Black & Decker reported Q3 2026 earnings of $2.31 a share on Nov 4, 2026, beating the $1.56 consensus estimate by 48.3%. Revenue was $3.7B against a $3.7B estimate.
Stanley Black & Decker delivered a blowout third quarter, posting adjusted EPS of $2.31 against a consensus estimate of $1.56, a beat of 48.29% that extended the company's streak of topping Wall Street's earnings expectations to six consecutive quarters. The primary driver was a significant tailwind from net IEEPA tariff refunds, which added roughly $0.67 to both GAAP and adjusted EPS and contributed approximately 430 basis points to gross margin expansion. Revenue came in at $3.73 billion, essentially in line with estimates but down 0.7% year over year on a reported basis, as the divestiture of CAM and a shift to a licensing model for outdoor gas products masked 4% organic growth. Tools & Outdoor, the company's core franchise, saw segment margin expand 520 basis points to 17.0%, while Engineered Fastening faced automotive headwinds. Management raised full-year adjusted EPS guidance to $5.95 to $6.25 and lifted free cash flow expectations to $1.0 to $1.2 billion, a confident signal from a company that <a href="https://247wallst.com/investing/2026/10/29/illinois-tool-works-has-raised-its-dividend-for-63-years-these-3-industrial-stocks-are-worth-watching/">industrial investors have been watching closely</a> amid a volatile macro backdrop.
- Net IEEPA tariff refunds added approximately 430 bps to gross margin and approximately $0.67 to EPS
- Volume up 6%, partially offset by pricing (-2%) and portfolio changes (-4%)
- Tools & Outdoor organic growth of 4%, led by power tools and the U.S. retail and commercial & industrial channels
- Tools & Outdoor North America organic growth of 6%
- Net productivity gains and favorable product mix lifted Tools & Outdoor segment margin to 17.0%
- Engineered Fastening organic growth of 2% on broad-based industrial strength, partially offset by weak automotive
- CAM divestiture reduced Engineered Fastening sales by 22%
- SG&A rose to 24.2% of sales on costs and investments tied to tariff refunds
“We saw strong underlying performance in the Tools & Outdoor segment in the third quarter, with continued strength in the U.S. retail and commercial & industrial channels. We were particularly encouraged by our organic growth in the quarter, which was up 4 percent, demonstrating that our brand activation and innovation efforts are yielding results.”
Stanley Black & Decker CEO, on the earnings call
What Is Stanley Black & Decker's Outlook?
2026 GAAP EPS guidance was raised to $5.45–$5.85 (from $4.60–$5.45). Adjusted EPS guidance was raised and tightened to $5.95–$6.25 (from $5.20–$5.80). The company says these represent year-over-year growth of 113% and 31%, respectively, at the midpoints. Free cash flow is now expected at $1.0–$1.2 billion (from $600–$800 million), including tariff refunds realized year-to-date and projected taxes and fees tied to the CAM divestiture. The roughly $0.40–$0.50 difference between GAAP and adjusted EPS mainly reflects footprint and other cost-action charges, partly offset by the gain on the CAM sale and related tax impact.
SWK YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.7B | $3.8B | −0.6% |
| Gross Profit | $1.5B | $1.2B | +26.2% |
| Operating Income | $415.1M | $364.5M | +13.9% |
| Net Income | $272.1M | $51.4M | +429.4% |
SWK Revenue by Segment
When Does Stanley Black & Decker Report Next?
Figures from SEC filings and company reports. Not investment advice.