Stanley Black & Decker (NYSE:SWK) Announces Earnings Results, Beats Expectations By $0.14 EPS

Posted by Joseph Griffin on Feb 5th, 2026

Stanley Black & Decker (NYSE:SWK – Get Free Report) released its quarterly earnings data on Wednesday. The industrial products company reported $1.41 EPS for the quarter, beating the consensus estimate of $1.27 by $0.14, Briefing.com reports. Stanley Black & Decker had a net margin of 2.89% and a return on equity of 8.10%. The business had revenue of $3.68 billion during the quarter, compared to analyst estimates of $3.78 billion. During the same quarter last year, the business earned $1.49 earnings per share. Stanley Black & Decker’s quarterly revenue was down 1.0% compared to the same quarter last year. 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:

Full?year Adjusted Gross Margin expanded to 30.7% (Q4: 33.3%) and the company completed its global cost reduction program, capturing $2.1 billion of run?rate pre?tax savings while targeting ~3% annual productivity and a >35% gross margin goal by Q4 2026.
Adjusted EPS rose 7% to $4.67, Adjusted EBITDA grew 5%, and Free Cash Flow was nearly $700M for 2025 (Q4 FCF $883M), which management used for dividends, debt paydown and growth investments.
Announced a definitive agreement to sell the CAM (aerospace fasteners) business for ~$1.8B gross (net proceeds ~$1.525–1.6B) to materially reduce debt, expected to cut leverage by ~1–1.25 turns and bring net debt/EBITDA to ?2.5x, increasing capital allocation flexibility.
Top?line pressure persists: total revenue was down 1% (organic -3%) in Q4 with a 7% volume decline; management expects continued volatility into Q1 as peak 2025 tariff expense rolls into the P&L and guided Q1 sales of ~ $3.7B with EPS $0.55–$0.60 and roughly flat gross margin.
Strategic portfolio moves will reduce reported revenue in the near term — management will transition gas?powered walk?behind outdoor products to a licensing model (reducing revenue by ~$120–140M in 2026 and ~$150–170M in 2027) while positioning those businesses for higher margins.

Stanley Black & Decker Trading Down 1.0%

Stanley Black & Decker stock traded down $0.88 during trading hours on Thursday, hitting $83.75. The company had a trading volume of 592,749 shares, compared to its average volume of 1,845,074. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.35 and a current ratio of 1.11. The firm has a market cap of $12.97 billion, a P/E ratio of 28.98, a P/E/G ratio of 1.11 and a beta of 1.21. The company has a 50-day moving average price of $77.36 and a two-hundred day moving average price of $73.60. Stanley Black & Decker has a 1 year low of $53.91 and a 1 year high of $90.75.

Institutional Trading of Stanley Black & Decker

Large investors have recently modified their holdings of the company. Chapman Financial Group LLC bought a new position in shares of Stanley Black & Decker during the 2nd quarter worth $26,000. CYBER HORNET ETFs LLC acquired a new stake in shares of Stanley Black & Decker in the 2nd quarter worth $28,000. MUFG Securities EMEA plc purchased a new stake in shares of Stanley Black & Decker during the second quarter worth about $31,000. Advisory Services Network LLC purchased a new stake in Stanley Black & Decker during the 3rd quarter worth approximately $35,000. Finally, Caitong International Asset Management Co. Ltd grew its holdings in shares of Stanley Black & Decker by 2,317.6% during the third quarter. Caitong International Asset Management Co. Ltd now owns 822 shares of the industrial products company’s stock valued at $61,000 after buying an additional 788 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have weighed in on SWK shares. UBS Group reduced their price objective on Stanley Black & Decker from $105.00 to $98.00 and set a “buy” rating on the stock in a research note on Monday, January 5th. Barclays reissued an “overweight” rating and set a $100.00 target price on shares of Stanley Black & Decker in a research report on Thursday. Weiss Ratings restated a “hold (c)” rating on shares of Stanley Black & Decker in a research report on Wednesday, January 21st. Morgan Stanley set a $88.00 price objective on shares of Stanley Black & Decker in a research report on Monday, December 22nd. Finally, Robert W. Baird raised their target price on shares of Stanley Black & Decker from $75.00 to $85.00 and gave the stock a “neutral” rating in a report on Tuesday, December 23rd. Five analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Stanley Black & Decker presently has a consensus rating of “Hold” and an average price target of $88.56.

Get Our Latest Stock Analysis on SWK

Key Stories Impacting Stanley Black & Decker

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

Positive Sentiment: EPS beat and margin improvement — Adjusted Q4 EPS came in at $1.41 vs. $1.27 expected, and management highlighted sharper margin expansion that drove the outperformance. Stanley Black & Decker (SWK) Q4 Earnings Surpass Estimates
Positive Sentiment: Cash flow and capital allocation — Company says strong cash generation supports continued dividends and further debt reduction, which is supportive for shareholder returns and balance-sheet stability. Stanley Black & Decker Reports 4Q and Full Year 2025 Results
Neutral Sentiment: Conference call & disclosures — Management released the full earnings release, slide deck and call transcript with detail on segment performance and cost actions; useful for modeling revenue mix and margin drivers. Stanley Black & Decker, Inc. (NYSE:SWK) Q4 2025 Earnings Call Transcript
Negative Sentiment: Revenue missed estimates — Q4 net sales were $3.684B vs. ~ $3.78B consensus, marking a year-over-year decline; several outlets noted the sales shortfall tempered the positive EPS surprise. Stanley Black & Decker Q4 earnings beat, revenue falls short of estimates
Negative Sentiment: FY2026 guidance below Street — Management set FY2026 EPS guidance of $4.90–$5.70, under the consensus (~$5.56), and warned of softer tools demand, which is the main driver behind downside pressure on the stock. Stanley Black & Decker forecasts 2026 profit below estimates on lower tools demand

Stanley Black & Decker Company Profile

(Get Free Report)

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.