Stanley Black & Decker Raises 2026 Earnings Outlook

The Tip Desk · November 4, 2026 · 3 min read

The tools maker lifted 2026 GAAP EPS guidance to $5.45–$5.85 after a $0.67 net-tariff-refund benefit in third-quarter earnings.

Stanley Black & Decker (SWK) raised its 2026 GAAP earnings outlook to a range of $5.45 to $5.85 a share, from $4.60 to $5.45, and lifted and tightened adjusted EPS guidance to $5.95 to $6.25 from $5.20 to $5.80.

The tools and outdoor-products company said the new ranges represent year-over-year growth of 113% and 31%, respectively, at the midpoint versus 2025. Free cash flow is now expected at $1.0 billion to $1.2 billion, revised from $600 million to $800 million, incorporating tariff refunds realized year-to-date and projected taxes and fees associated with the Consolidated Aerospace Manufacturing sale.

Third-quarter net sales were $3.7 billion, down 1% from a year earlier and up 4% on an organic basis, after second-quarter sales of $4.0 billion that were in line with the year-ago period and up 3% organically. Volume rose 6% and pricing fell 2%, with portfolio changes down 4% and currency flat.

Gross margin was 39.0%, up 760 basis points year over year, and adjusted gross margin was 39.4%, up 780 basis points. Both included an approximate 430 basis point benefit from net tariff refunds, versus a roughly 250 basis point tariff benefit in the second quarter. Diluted EPS was $1.83 and adjusted EPS was $2.31, both including about $0.67 from net tariff refunds.

President and Chief Executive Chris Nelson said the company saw strong underlying performance in Tools & Outdoor, with continued strength in U.S. retail and commercial and industrial channels, and that organic growth of 4% demonstrated that brand activation and innovation efforts were yielding results.

Tools & Outdoor net sales were $3,336 million, up 2% year over year, as volume rose 7%, pricing fell 3%, and the previously announced licensing transition for gas walk-behind outdoor products reduced sales 2%. Organic revenue in the segment increased 4%, primarily driven by power tools and U.S. retail and commercial and industrial channels. Segment margin was 17.0%, up 520 basis points, and adjusted segment margin was 17.6%, up 560 basis points, including about 430 basis points from net tariff refunds. The company said margin improvement also reflected net productivity gains and favorable product mix.

North America net sales were up 3% on a total basis and 6% organically. Europe was down 1% on a total basis and up 1% organically. Rest of World was up 2% on a total basis and down 1% organically.

Engineered Fastening net sales were $396 million, down 21% year over year due to the CAM divestiture, partially offset by volume and pricing of 1% each. Organic revenue was up 2%, driven by broad-based industrial strength and partially offset by automotive results below expectations. Segment margin was 11.7%, down 20 basis points, and adjusted segment margin was 11.7%, down 110 basis points, with year-over-year margin impacted by automotive demand pressure.

Cash from operating activities was $659 million and free cash flow was $585 million. The company executed incremental $250 million of share repurchases in the third quarter, fully utilizing the $500 million authorization approved in April 2026. The board approved a new $1 billion repurchase authorization on October 29, 2026, expiring October 29, 2029.

Total pre-tax non-GAAP adjustments in the third quarter were $89.3 million, including $29.5 million of restructuring charges, a $19.7 million asset impairment, and a $20.4 million loss on the sale of a small Engineered Fastening business. The difference between the GAAP and adjusted 2026 EPS ranges is approximately $0.40 to $0.50, consisting primarily of charges related to footprint and other cost actions, partially offset by the gain on the CAM sale and related tax impact.