Stanley Black & Decker (NYSE:SWK) Releases Quarterly Earnings Results

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 the consensus estimate of $1.21 by $0.36, FiscalAI reports. The business had revenue of $3.96 billion during 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 company’s revenue for the quarter was up .4% compared to the same quarter last year. During the same quarter in the previous year, the business 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 Down 2.3%

Shares of Stanley Black & Decker stock traded down $2.13 during trading on Wednesday, hitting $92.06. 1,393,110 shares of the stock traded hands, compared to its average volume of 1,860,888. The company has a current ratio of 1.14, a quick ratio of 0.43 and a debt-to-equity ratio of 0.52. The stock’s fifty day simple moving average is $85.38 and its 200 day simple moving average is $80.93. The firm has a market cap of $14.31 billion, a P/E ratio of 37.70, a price-to-earnings-growth ratio of 1.32 and a beta of 1.16. Stanley Black & Decker has a 52-week low of $61.90 and a 52-week high of $96.04.

Stanley Black & Decker Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Tuesday, September 8th will be given a dividend of $0.84 per share. This represents a $3.36 dividend on an annualized basis and a dividend yield of 3.6%. 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. Stanley Black & Decker’s dividend payout ratio is currently 137.70%.

Wall Street Analyst Weigh In

SWK has been the subject of a number of research analyst reports. Wells Fargo & Company raised their price target on Stanley Black & Decker from $80.00 to $90.00 and gave the stock an “equal weight” rating in a research note on Thursday, June 18th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Stanley Black & Decker in a research report on Friday, July 17th. Robert W. Baird set a $84.00 target price on Stanley Black & Decker in a research report on Thursday, April 30th. Morgan Stanley lowered their target price 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. Finally, Barclays cut their price target on shares of Stanley Black & Decker from $100.00 to $95.00 and set an “overweight” rating on the stock in a 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. According to MarketBeat.com, Stanley Black & Decker presently has a consensus rating of “Hold” and a consensus price target of $88.44.

More Stanley Black & Decker News

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.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Stanley Black & Decker by 3.7% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 15,648 shares of the industrial products company’s stock worth $1,203,000 after purchasing an additional 559 shares during the period. Empowered Funds LLC increased its holdings in Stanley Black & Decker by 8.2% during the first quarter. Empowered Funds LLC now owns 4,645 shares of the industrial products company’s stock valued at $357,000 after buying an additional 353 shares during the period. Focus Partners Wealth increased its holdings in Stanley Black & Decker by 18.8% during the first quarter. Focus Partners Wealth now owns 6,981 shares of the industrial products company’s stock valued at $537,000 after buying an additional 1,105 shares during the period. CW Advisors LLC bought a new position in Stanley Black & Decker in the second quarter worth approximately $249,000. Finally, EverSource Wealth Advisors LLC lifted its holdings in Stanley Black & Decker by 53.6% during the second quarter. EverSource Wealth Advisors LLC now owns 989 shares of the industrial products company’s stock worth $67,000 after buying an additional 345 shares during the period. 87.77% of the stock is currently owned by institutional investors.

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.