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

Stanley Black & Decker (NYSE:SWK) announced its quarterly earnings data on Wednesday. The industrial products company reported $1.57 earnings per share for the quarter, topping 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%.Stanley Black & Decker’s revenue for the quarter was up .4% compared to the same quarter last year. During the same quarter last year, the firm earned $1.08 EPS. 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

Shares of NYSE SWK traded down $0.90 during mid-day trading on Wednesday, hitting $93.30. 1,776,876 shares of the stock were exchanged, compared to its average volume of 1,863,303. Stanley Black & Decker has a twelve month low of $61.90 and a twelve month high of $96.04. The stock’s fifty day simple moving average is $85.38 and its two-hundred day simple moving average is $80.93. The company has a debt-to-equity ratio of 0.52, a quick ratio of 0.43 and a current ratio of 1.14. The company has a market cap of $14.50 billion, a P/E ratio of 38.34, a PEG ratio of 1.32 and a beta of 1.16.

Stanley Black & Decker Increases Dividend

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

Analyst Ratings Changes

SWK has been the topic of several analyst reports. Wall Street Zen raised shares of Stanley Black & Decker from a “hold” rating to a “buy” rating in a report on Saturday, June 20th. Weiss Ratings restated a “hold (c)” rating on shares of Stanley Black & Decker in a research note on Friday, July 17th. JPMorgan Chase & Co. upped their price objective on Stanley Black & Decker from $65.00 to $75.00 and gave the company an “underweight” rating in a research note on Friday, May 1st. Wells Fargo & Company raised their target price on Stanley Black & Decker from $80.00 to $90.00 and gave the stock an “equal weight” rating in a research report on Thursday, June 18th. Finally, Robert W. Baird set a $84.00 price target on Stanley Black & Decker in a research report on Thursday, April 30th. Four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Stanley Black & Decker presently has an average rating of “Hold” and a consensus price target of $88.44.

Institutional Investors Weigh In On Stanley Black & Decker

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

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 analyst consensus and up from $1.08 a year earlier. The company attributed the improvement to margin expansion, productivity gains and stronger operating performance. Stanley Black Beats Q2 Earnings Estimates on Margin Expansion, Raises Outlook
• Positive Sentiment: Gross margin increased by 600 basis points to 33.0%. Operating cash flow reached $763 million and free cash flow totaled $698 million, supporting the company’s decision to reduce debt by $1.7 billion and repurchase approximately $250 million of stock.
• Positive Sentiment: SWK raised its 2026 earnings outlook and increased free-cash-flow guidance to $600 million-$800 million, signaling confidence in continued cost savings and cash generation. Stanley Black & Decker Reports Solid 2Q 2026 Results
• Neutral Sentiment: Revenue was approximately $3.96 billion, broadly flat year over year and slightly below the $3.97 billion consensus. Organic sales increased 3%, with Tools & Outdoor sales rising 3% to $3.56 billion.
• Negative Sentiment: Both adjusted and GAAP earnings benefited by roughly $0.17 per share from net tariff refunds, raising questions about how sustainable the quarter’s profit boost will be. Tariff Refunds Lift Stanley Black & Decker Profit, But Sales Miss the Mark
• Negative Sentiment: Engineered Fastening sales fell 18% to $396 million following the CAM divestiture, while the modest overall sales growth suggests demand remains mixed across industrial end markets.

About Stanley Black & Decker

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.