Stanley Black & Decker Inc
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.47%.
Did SWK Beat Earnings? Q2 2026 Results
Stanley Black & Decker posted a strong second quarter for fiscal 2026, delivering adjusted EPS of $1.57 against a consensus estimate of $1.20, a 30.40% beat that extended the toolmaker's streak of topping consensus EPS estimates to five consecutive quarters. Revenue came in at $3.96 billion, essentially in line with expectations and up 0.4% year over year, though the headline figure masked 3% organic growth driven by gains in U.S. retail and commercial channels. The quarter's standout driver was a net tariff refund under IEEPA, which added roughly 250 basis points to gross margin and contributed approximately $0.17 to adjusted EPS, helping push the total gross margin to 33.0% on a GAAP basis. Free cash flow reached $698.20 million, and the company used proceeds from its April divestiture of the CAM aerospace business to retire $1.70 billion in debt. Management raised full-year adjusted EPS guidance to $5.20 to $5.80, representing roughly 18% growth at the midpoint, and lifted free cash flow guidance to $600 million to $800 million, signaling continued confidence in the company's operational trajectory.
- 3% organic revenue growth driven by power tools strength in U.S. retail and commercial/industrial channels
- Gross margin expanded 600 basis points to 33.0%, including ~250 basis point benefit from net IEEPA tariff refunds
- Net productivity gains and favorable product mix improved Tools & Outdoor segment margin by 400 basis points
- Engineered Fastening organic growth of 3% driven by industrial strength and continued automotive fasteners growth
- Strong free cash flow of $698 million in the quarter
- Successful completion of CAM divestiture generating $273.7 million gain
“The Stanley Black & Decker team is committed to executing our strategy and delivering profitable, organic growth. Our second quarter sales, gross margin, and cash performance keep us firmly on track to achieve our full-year targets. We further strengthened the balance sheet and executed on our capital deployment strategy. In addition, the tariff refunds are supporting incremental growth investments.”
Stanley Black & Decker CEO, on the earnings call
Forward Guidance & Outlook
Stanley Black & Decker raised its full-year 2026 guidance. GAAP EPS is now expected in the range of $4.60 to $5.45, up from the prior range of $4.15 to $5.35. Adjusted EPS guidance was raised and tightened to $5.20 to $5.80, from $4.90 to $5.70, representing approximately 18% year-over-year growth at the midpoint. Free cash flow guidance was increased to $600 million to $800 million, up from $500 million to $700 million, incorporating the tariff refund received in Q2 and projected taxes and fees from the CAM divestiture. The company said it is on track to achieve full-year sales and margin targets.
SWK YoY Financials
SWK Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.