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

Stanley Black & Decker (NYSE:SWK) announced its quarterly earnings results on Wednesday. The industrial products company reported $1.57 earnings per share for the quarter, topping analysts’ consensus estimates of $1.21 by $0.36, FiscalAI reports. The company had revenue of $3.96 billion during the quarter, compared to analysts’ expectations of $3.97 billion. Stanley Black & Decker had a return on equity of 8.78% and a net margin of 4.07%.The business’s quarterly revenue was up .4% compared to the same quarter last year. During the same quarter in the previous year, the firm 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 Price Performance

NYSE:SWK traded down $1.50 during trading hours on Friday, reaching $94.05. The company had a trading volume of 419,082 shares, compared to its average volume of 1,882,756. The company has a quick ratio of 0.43, a current ratio of 1.43 and a debt-to-equity ratio of 0.53. The stock has a 50-day moving average of $86.14 and a two-hundred day moving average of $81.11. Stanley Black & Decker has a one year low of $61.90 and a one year high of $96.04. The firm has a market capitalization of $14.62 billion, a PE ratio of 22.98, a PEG ratio of 1.30 and a beta of 1.16.

Stanley Black & Decker Increases Dividend

The business also recently declared 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 represents a $3.36 dividend on an annualized basis and a yield of 3.6%. This is a positive change from Stanley Black & Decker’s previous quarterly dividend of $0.83. The ex-dividend date is Tuesday, September 8th. Stanley Black & Decker’s dividend payout ratio (DPR) is currently 136.07%.

Hedge Funds Weigh In On Stanley Black & Decker

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. increased its holdings in Stanley Black & Decker by 9.7% during the 4th quarter. Invesco Ltd. now owns 3,328,893 shares of the industrial products company’s stock valued at $247,270,000 after purchasing an additional 294,887 shares in the last quarter. Corient Private Wealth LLC raised its holdings in shares of Stanley Black & Decker by 148.5% in the fourth quarter. Corient Private Wealth LLC now owns 29,163 shares of the industrial products company’s stock valued at $2,004,000 after buying an additional 17,426 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its holdings in Stanley Black & Decker by 41.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 9,933 shares of the industrial products company’s stock worth $738,000 after acquiring an additional 2,903 shares during the last quarter. Vident Advisory LLC increased its position in Stanley Black & Decker by 3.1% in the 4th quarter. Vident Advisory LLC now owns 21,557 shares of the industrial products company’s stock valued at $1,601,000 after acquiring an additional 645 shares in the last quarter. Finally, Mackenzie Financial Corp raised its stake in shares of Stanley Black & Decker by 3.0% in the fourth quarter. Mackenzie Financial Corp now owns 7,441 shares of the industrial products company’s stock worth $558,000 after acquiring an additional 217 shares during the last quarter. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

SWK has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. upped their target price on Stanley Black & Decker from $65.00 to $75.00 and gave the stock an “underweight” rating in a research report on Friday, May 1st. Morgan Stanley decreased their price target on shares of Stanley Black & Decker from $87.00 to $84.00 and set an “equal weight” rating for the company in a report on Thursday, May 28th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Stanley Black & Decker in a report on Friday, July 17th. The Goldman Sachs Group reissued a “neutral” rating and issued a $93.00 price objective on shares of Stanley Black & Decker in a research report on Wednesday. Finally, Wells Fargo & Company increased their price target on shares of Stanley Black & Decker from $80.00 to $90.00 and gave the company an “equal weight” rating in a report on Thursday, June 18th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Stanley Black & Decker has a consensus rating of “Hold” and a consensus target price of $89.44.

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.