Stanley Black & Decker (NYSE:SWK) Announces Earnings Results, Beats Estimates By $0.76 EPS

Stanley Black & Decker (NYSE:SWK) announced its earnings results on Wednesday. The industrial products company reported $2.31 EPS for the quarter, topping the consensus estimate of $1.55 by $0.76, FiscalAI reports. Stanley Black & Decker had a net margin of 4.07% and a return on equity of 8.78%. The firm had revenue of $3.73 billion for the quarter, compared to the consensus estimate of $3.74 billion.

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

• Third-quarter organic revenue grew 4%, led by 7% volume growth in Tools & Outdoor, with DEWALT, STANLEY, and CRAFTSMAN all growing. Power tools rose 10%, while North American commercial and industrial revenue increased by a mid-teens percentage.
• Stanley Black & Decker raised full-year adjusted EPS guidance to $5.95–$6.25 and free cash flow guidance to $1.0–$1.2 billion. However, the EPS outlook includes a $0.60 net benefit from tariff refunds, and the company said it has received most refunds available through the current process.
• Results included substantial temporary tariff-refund support: refunds contributed $0.67 to third-quarter EPS and about 430 basis points to adjusted gross margin. Management expects meaningful materials inflation in 2027 and plans to address it with productivity measures and price increases, which may be challenging to execute.
• Performance was uneven across businesses: Outdoor organic revenue fell 12% amid weather-related weakness, and Engineered Fastening’s automotive revenue declined 2% as customers grew more cautious. The company also expects automotive softness and inflation to weigh on Engineered Fastening margins.
• Free cash flow was about $836 million year to date, and the company repurchased roughly $250 million of shares in the quarter, completing its prior authorization. The board approved a new $1 billion repurchase authorization, while management said it remains on track for year-end net debt to adjusted EBITDA of around 2.5x.

Stanley Black & Decker Price Performance

Shares of Stanley Black & Decker stock traded down $3.30 during midday trading on Thursday, hitting $115.03. 1,675,092 shares of the company were exchanged, compared to its average volume of 1,844,379. The firm has a 50 day simple moving average of $94.09 and a 200-day simple moving average of $86.00. The company has a debt-to-equity ratio of 0.53, a current ratio of 1.43 and a quick ratio of 0.55. The firm has a market cap of $17.37 billion, a P/E ratio of 28.05, a PEG ratio of 1.55 and a beta of 1.15. Stanley Black & Decker has a 52 week low of $61.90 and a 52 week high of $122.68.

Stanley Black & Decker Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 22nd. Stockholders of record on Tuesday, December 1st will be issued a $0.84 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $3.36 dividend on an annualized basis and a dividend yield of 2.9%. Stanley Black & Decker’s dividend payout ratio is presently 81.95%.

Key Stories Impacting Stanley Black & Decker

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

• Positive Sentiment: SWK reported third-quarter adjusted earnings of $2.31 per share, well above the roughly $1.55 consensus. The company also raised its 2026 earnings and free-cash-flow outlook, citing tariff refunds alongside continued organic growth and margin expansion. Stanley Black & Decker Reports 3Q 2026 Results
• Positive Sentiment: The company completed $250 million in share repurchases and authorized an additional $1 billion buyback, potentially supporting per-share results and signaling confidence in its cash generation. New $1 billion share repurchase authorization
• Positive Sentiment: Baird raised its price target to $115 from $102, adding to the positive post-earnings analyst revisions. Baird raises price target
• Neutral Sentiment: Wells Fargo lifted its target to $115 from $90 but kept an “equal weight” rating, implying little upside from the stock’s recent trading level. Wells Fargo rating and target
• Negative Sentiment: Quarterly revenue of $3.73 billion was slightly below estimates. Also, tariff refunds contributed to the earnings and guidance improvement, while higher steel and component costs may require price increases in 2027—leaving questions about how durable margin gains will be. Company signals 2027 price hikes amid rising costs

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Morgan Stanley set a $100.00 target price on Stanley Black & Decker in a research note on Tuesday, October 6th. Wall Street Zen downgraded Stanley Black & Decker from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 24th. The Goldman Sachs Group reiterated a “neutral” rating and set a $93.00 price target (up from $82.00) on shares of Stanley Black & Decker in a report on Wednesday, July 29th. Wells Fargo & Company increased their price objective on Stanley Black & Decker from $90.00 to $115.00 and gave the company an “equal weight” rating in a research report on Thursday. Finally, Deutsche Bank Aktiengesellschaft lifted their target price on Stanley Black & Decker from $93.00 to $97.00 and gave the stock a “hold” rating in a research report on Wednesday, September 30th. Five equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and an average price target of $97.09.

Stanley Black & Decker Company Profile

Stanley Black & Decker, Inc is a global manufacturer of tools, outdoor products and related equipment. The company serves professional contractors, industrial customers, do-it-yourself consumers and outdoor enthusiasts through a portfolio that includes power tools, hand tools, storage solutions, accessories, lawn and garden equipment, and other outdoor products.

Its brands include DEWALT, CRAFTSMAN, STANLEY, BLACK+DECKER, Cub Cadet, Hustler and Troy-Bilt. Products are sold through retailers, distributors, e-commerce channels and other commercial outlets, supporting construction, maintenance, manufacturing, automotive repair and residential applications.

The company was formed in 2010 through the merger of The Stanley Works and The Black & Decker Corporation.