Stanley Black & Decker (NYSE:SWK) Issues Earnings Results, Beats Expectations By $0.36 EPS

Stanley Black & Decker (NYSE:SWK) posted its earnings results on Wednesday. The industrial products company reported $1.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.21 by $0.36, FiscalAI reports. The company had revenue of $3.96 billion for the quarter, compared to analyst estimates of $3.97 billion. Stanley Black & Decker had a return on equity of 7.95% and a net margin of 2.44%.The firm’s quarterly revenue was up .4% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.08 earnings per share. Stanley Black & Decker updated its FY 2026 guidance to 4.900-5.700 EPS.

Here are the key takeaways from Stanley Black & Decker’s conference call:

• Solid second-quarter execution: Revenue was flat year over year and organic sales grew 3%, while adjusted gross margin expanded 620 basis points to 33.7% and adjusted EPS of $1.57 exceeded the midpoint of guidance by $0.37. Tariff refunds contributed approximately 250 basis points to gross margin.
• Full-year outlook was raised: Adjusted EPS guidance increased to $5.20-$5.80, with free cash flow expected at $600 million-$800 million. The company continues to forecast flat total revenue, low-single-digit organic growth, and approximately 150 basis points of underlying gross-margin expansion.
• Power tools and core brands gained momentum: Power tools organic revenue rose 8%, supported by demand generation, product launches, and improved channel placement, while DEWALT, STANLEY, and CRAFTSMAN all posted organic growth. U.S. commercial and industrial sales grew at a low-double-digit rate.
• Capital deployment strengthened the balance sheet: Proceeds from the aerospace fasteners divestiture and operating cash flow enabled $1.7 billion of debt repayment and $250 million of share repurchases. Management remains focused on opportunistic buybacks and reaching roughly 2.5x net debt to adjusted EBITDA by year-end.
• Tariff and inflation uncertainty remains: Management expects tariff costs to return toward prior IEEPA levels within months, while battery metals, tungsten, oil, and derivatives are creating roughly $100 million of annualized inflationary pressure. Potential second-half tariff refunds were excluded from guidance, and price increases may be necessary in 2027.

Stanley Black & Decker Stock Performance

Shares of Stanley Black & Decker stock traded down $2.13 on Wednesday, reaching $92.06. 1,393,110 shares of the stock were exchanged, compared to its average volume of 1,860,888. The business has a 50 day moving average price of $85.38 and a two-hundred day moving average price of $80.93. The firm has a market capitalization of $14.31 billion, a price-to-earnings ratio of 37.70, a PEG ratio of 1.32 and a beta of 1.16. Stanley Black & Decker has a twelve month low of $61.90 and a twelve month high of $96.04. The company has a quick ratio of 0.43, a current ratio of 1.14 and a debt-to-equity ratio of 0.52.

Stanley Black & Decker Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Tuesday, September 8th will be issued a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a dividend yield of 3.6%. This is a positive change from Stanley Black & Decker’s previous quarterly dividend of $0.83. The ex-dividend date of this dividend is Tuesday, September 8th. Stanley Black & Decker’s dividend payout ratio is presently 137.70%.

Hedge Funds Weigh In On Stanley Black & Decker

A number of institutional investors have recently bought and sold shares of the business. Parallel Advisors LLC raised its position in shares of Stanley Black & Decker by 42.2% in the third quarter. Parallel Advisors LLC now owns 1,867 shares of the industrial products company’s stock worth $139,000 after acquiring an additional 554 shares during the period. Ossiam purchased a new position in shares of Stanley Black & Decker in the 2nd quarter valued at about $87,000. Brown Brothers Harriman & Co. increased its stake in shares of Stanley Black & Decker by 281.6% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,099 shares of the industrial products company’s stock valued at $82,000 after purchasing an additional 811 shares in the last quarter. Lazard Asset Management LLC acquired a new position in Stanley Black & Decker in the 2nd quarter worth about $79,000. Finally, Danske Bank A S purchased a new position in Stanley Black & Decker during the third quarter worth approximately $74,000. 87.77% of the stock is owned by hedge funds and other institutional investors.

Stanley Black & Decker News Summary

Here are the key news stories impacting Stanley Black & Decker this week:

• Positive Sentiment: Second-quarter adjusted EPS was $1.57, well above the $1.21 consensus and up from $1.08 a year earlier. The company also raised its full-year 2026 EPS and free-cash-flow outlook. Stanley Black & Decker Q2 earnings report
• Positive Sentiment: Operating improvements were significant: gross margin expanded by 600 basis points to 33%, operating cash flow reached $763 million, and free cash flow was $698 million. Stanley Black & Decker also reduced debt by $1.7 billion and repurchased approximately $250 million of stock. Stanley Black & Decker reports second-quarter results
• Positive Sentiment: Tools & Outdoor sales increased 3% organically, supporting management’s expectation that it remains on track for its full-year sales and margin targets. Stanley Black & Decker sales and outlook report
• Neutral Sentiment: Revenue was essentially flat year over year at $3.96 billion, narrowly below the $3.97 billion analyst estimate. The result was broadly in line with expectations, but did not provide a major top-line catalyst.
• Negative Sentiment: About $0.17 of the quarterly EPS benefit came from net tariff refunds, making the earnings beat appear partly driven by a nonrecurring item rather than underlying demand. Tariff refunds lift Stanley Black & Decker profit
• Negative Sentiment: Engineered Fastening sales fell 18% after the CAM divestiture, highlighting continued portfolio-related pressure. With shares trading near their 52-week high and at roughly 38 times earnings, investors may have expected a cleaner beat and stronger revenue growth.

Wall Street Analyst Weigh In

A number of analysts have recently weighed in on SWK shares. Wells Fargo & Company raised their price target on shares of Stanley Black & Decker from $80.00 to $90.00 and gave the company an “equal weight” rating in a report on Thursday, June 18th. Morgan Stanley reduced their price objective on shares of Stanley Black & Decker from $87.00 to $84.00 and set an “equal weight” rating for the company in a research note on Thursday, May 28th. Robert W. Baird set a $84.00 target price on shares of Stanley Black & Decker in a research note on Thursday, April 30th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Stanley Black & Decker in a report on Friday, July 17th. Finally, Barclays decreased their price objective on shares of Stanley Black & Decker from $100.00 to $95.00 and set an “overweight” rating for the company in a research report on Wednesday, April 1st. Four research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $88.44.

Stanley Black & Decker Company Profile

Stanley Black & Decker, Inc (NYSE:SWK) is a leading global manufacturer of industrial tools, engineered fastening systems, and security products. The company’s portfolio includes power tools, hand tools, accessories, and storage solutions marketed under well-known brands such as DEWALT, Stanley, Craftsman and Black & Decker. In addition to its core tools and hardware offerings, the company provides customized assembly and installation systems for the automotive, electronics and aerospace industries.

Operations are organized across three principal business segments.