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

Stanley Black & Decker (NYSE:SWK) announced its earnings results on Wednesday. The industrial products company reported $1.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.21 by $0.36, FiscalAI reports. Stanley Black & Decker had a net margin of 2.44% and a return on equity of 7.95%. The company had revenue of $3.96 billion during the quarter, compared to analysts’ expectations of $3.97 billion. During the same quarter in the previous year, the business posted $1.08 earnings per share. Stanley Black & Decker’s quarterly revenue was up .4% on a year-over-year basis. 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 Price Performance

Stanley Black & Decker stock traded down $0.27 during mid-day trading on Thursday, reaching $92.78. The company had a trading volume of 372,398 shares, compared to its average volume of 1,870,683. The business has a fifty day simple moving average of $85.74 and a 200 day simple moving average of $81.01. The company has a market cap of $14.42 billion, a P/E ratio of 38.02, a P/E/G ratio of 1.32 and a beta of 1.16. The company has a current ratio of 1.14, a quick ratio of 0.43 and a debt-to-equity ratio of 0.52. Stanley Black & Decker has a fifty-two week low of $61.90 and a fifty-two week high of $96.04.

Stanley Black & Decker Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Shareholders of record on Tuesday, September 8th will be given a $0.84 dividend. This is an increase from Stanley Black & Decker’s previous quarterly dividend of $0.83. This represents a $3.36 dividend on an annualized basis and a yield of 3.6%. The ex-dividend date is Tuesday, September 8th. Stanley Black & Decker’s dividend payout ratio (DPR) is 136.07%.

Trending Headlines about Stanley Black & Decker

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 estimate and up from $1.08 a year earlier, helped by improved operating performance and margin expansion. Stanley Black & Decker Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Gross margin increased approximately 600 basis points to 33%, while operating cash flow reached $763 million and free cash flow totaled $698 million. The company also reduced debt by $1.7 billion and repurchased roughly $250 million of stock. Stanley Black & Decker Reports Solid 2Q 2026 Results
• Positive Sentiment: Management raised its fiscal 2026 EPS outlook to approximately $4.90-$5.70 and increased free-cash-flow guidance to $600 million-$800 million, signaling greater confidence in cost controls and cash generation. Stanley Black Beats Q2 Earnings Estimates on Margin Expansion, Raises Outlook
• Neutral Sentiment: Quarterly revenue was $3.96 billion, essentially flat year over year and slightly below the $3.97 billion consensus. Organic sales increased about 3%, with Tools & Outdoor growth offset by portfolio changes. Tariff refunds lift Stanley Black & Decker profit, but sales miss the mark
• Negative Sentiment: Both GAAP and adjusted EPS included an estimated $0.17-per-share benefit from net tariff refunds, which may not recur and makes the earnings beat less representative of underlying demand.
• Negative Sentiment: Engineered Fastening sales fell 18% following the CAM divestiture, while the modest overall revenue growth may concern investors focused on the company’s elevated valuation and end-market demand.

Analyst Upgrades and Downgrades

A number of analysts have issued reports on SWK shares. Barclays cut 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 report on Wednesday, April 1st. Morgan Stanley cut their price target on 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. Weiss Ratings reissued a “hold (c)” rating on shares of Stanley Black & Decker in a research report on Friday, July 17th. Wells Fargo & Company lifted their price objective on Stanley Black & Decker from $80.00 to $90.00 and gave the company an “equal weight” rating in a report on Thursday, June 18th. Finally, Robert W. Baird set a $84.00 target price on Stanley Black & Decker in a research report on Thursday, April 30th. Four research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Stanley Black & Decker currently has a consensus rating of “Hold” and a consensus price target of $89.44.

Institutional Investors Weigh In On Stanley Black & Decker

A number of hedge funds and other institutional investors have recently bought and sold shares of SWK. Chapman Financial Group LLC bought a new position in Stanley Black & Decker in the second quarter valued at about $26,000. Kovack Advisors Inc. acquired a new position in shares of Stanley Black & Decker in the fourth quarter valued at approximately $28,000. CYBER HORNET ETFs LLC bought a new position in Stanley Black & Decker in the 2nd quarter valued at approximately $28,000. MUFG Securities EMEA plc acquired a new stake in Stanley Black & Decker during the 2nd quarter worth approximately $31,000. Finally, Advisory Services Network LLC bought a new stake in Stanley Black & Decker during the 3rd quarter worth approximately $35,000. Institutional investors own 87.77% of the company’s stock.

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.