Stanley Black & Decker (NYSE:SWK) Issues Quarterly Earnings Results, Beats Expectations By $0.19 EPS

by · The Cerbat Gem

Stanley Black & Decker (NYSE:SWKGet Free Report) announced its earnings results on Wednesday. The industrial products company reported $0.80 EPS for the quarter, topping the consensus estimate of $0.61 by $0.19, FiscalAI reports. Stanley Black & Decker had a return on equity of 7.90% and a net margin of 2.66%.The firm had revenue of $3.85 billion for the quarter, compared to analysts’ expectations of $3.74 billion. During the same quarter in the previous year, the company earned $0.75 earnings per share. The firm’s quarterly revenue was up 2.7% compared to the same quarter last year. 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:

  • Stanley Black & Decker beat expectations in Q1 — revenue +3% (organic flat) and adjusted EPS $0.80, $0.20 above the high end of guidance, with adjusted gross margin ~30.2% and adjusted EBITDA margin 9.2%.
  • The company closed the sale of its aerospace fasteners (CAM) for about $1.8B (~$1.6B net), applied most proceeds to debt reduction, received board authorization for $500M of share repurchases, and expects to target ~2.5x net debt/EBITDA by year-end.
  • 2026 guidance maintained at adjusted EPS $4.90–$5.70 (midpoint +13%), with reported revenue ~flat, low-single-digit organic growth, and an expected ~150 bps expansion in adjusted gross margin for the year.
  • Management sees a near-term tariff tailwind from recent policy shifts (Section 122) but expects reinstated Section 301 rates by August and says inflationary pressures in resins, freight, battery metals and tungsten roughly offset the tariff benefit.
  • Segment trends were mixed but constructive — Engineered Fastening grew ~7% organically (aerospace +31%) with margins up ~190 bps, while Tools & Outdoor was down ~1% organic but showed strong outdoor preseason sell‑in and high-single-digit growth in U.S. professional/commercial channels.

Stanley Black & Decker Trading Down 3.0%

NYSE SWK traded down $2.35 on Wednesday, hitting $75.98. 3,142,523 shares of the stock were exchanged, compared to its average volume of 2,021,389. Stanley Black & Decker has a 52-week low of $58.23 and a 52-week high of $93.37. The company has a debt-to-equity ratio of 0.52, a current ratio of 1.14 and a quick ratio of 0.35. The company has a market capitalization of $11.80 billion, a price-to-earnings ratio of 28.67, a P/E/G ratio of 1.14 and a beta of 1.20. The company’s 50-day moving average price is $74.94 and its two-hundred day moving average price is $75.18.

Stanley Black & Decker Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 23rd. Shareholders of record on Monday, June 8th will be issued a $0.83 dividend. The ex-dividend date of this dividend is Monday, June 8th. This represents a $3.32 annualized dividend and a dividend yield of 4.4%. Stanley Black & Decker’s dividend payout ratio is currently 125.28%.

Analyst Upgrades and Downgrades

Several brokerages recently commented on SWK. Wall Street Zen cut Stanley Black & Decker from a “buy” rating to a “hold” rating in a report on Sunday, March 29th. Argus raised Stanley Black & Decker to a “hold” rating in a report on Tuesday, February 10th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Stanley Black & Decker in a report on Monday, April 20th. Wells Fargo & Company dropped their price target on Stanley Black & Decker from $82.00 to $75.00 and set an “equal weight” rating on the stock in a report on Wednesday, April 8th. Finally, UBS Group dropped their price target on Stanley Black & Decker from $105.00 to $98.00 and set a “buy” rating on the stock in a report on Monday, January 5th. Four investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Stanley Black & Decker presently has a consensus rating of “Hold” and a consensus price target of $85.22.

Get Our Latest Stock Report on SWK

Hedge Funds Weigh In On Stanley Black & Decker

Several institutional investors and hedge funds have recently added to or reduced their stakes in SWK. Freestone Grove Partners LP purchased a new position in Stanley Black & Decker during the 3rd quarter worth approximately $95,602,000. Alyeska Investment Group L.P. grew its position in Stanley Black & Decker by 5,996.4% during the 4th quarter. Alyeska Investment Group L.P. now owns 1,191,540 shares of the industrial products company’s stock worth $88,508,000 after purchasing an additional 1,171,995 shares in the last quarter. Adage Capital Partners GP L.L.C. grew its position in Stanley Black & Decker by 698.8% during the 4th quarter. Adage Capital Partners GP L.L.C. now owns 765,835 shares of the industrial products company’s stock worth $56,886,000 after purchasing an additional 669,956 shares in the last quarter. Dimensional Fund Advisors LP grew its position in Stanley Black & Decker by 12.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,884,278 shares of the industrial products company’s stock worth $362,812,000 after purchasing an additional 555,103 shares in the last quarter. Finally, Balyasny Asset Management L.P. purchased a new position in Stanley Black & Decker during the 2nd quarter worth approximately $36,003,000. 87.77% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting Stanley Black & Decker

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

  • Positive Sentiment: Q1 beat and revenue growth — SWK reported $0.80 EPS vs $0.61 consensus and revenue of $3.85B (up ~2.7% y/y), showing top‑line resilience and an earnings beat that supports the recovery thesis. Q1 earnings and revenues surpass estimates
  • Positive Sentiment: Raised FY‑2026 guidance and strategic cash event — Management updated FY EPS guidance to a 4.90–5.70 range and expects ~ $1.6B net proceeds from the planned sale of the aerospace fasteners unit, which strengthens the balance sheet and funds buybacks/deployments. Press release: Strong 1Q 2026 results
  • Neutral Sentiment: Analyst/coverage notes — Several outlets characterize the quarter as a mixed beat: solid headline numbers but with caveats on margins and organic trends; slide deck and call are available for detail. MarketBeat: Listen to Conference Call
  • Negative Sentiment: Weak cash flow and margin pressure — Coverage highlights that cash conversion and margin compression (organic sales weakness in North America and rising costs) were key concerns on the call, which likely weighed on the stock despite the beat. Benzinga: Volume hit from North America slowdown
  • Negative Sentiment: Capital allocation and potential dilution — Shareholders approved an expanded equity incentive plan and analysts flagged tension between buybacks, valuation and incentive dilution — a governance/capital‑allocation consideration for longer‑term holders. Globe and Mail: Shareholders expand equity incentive plan

Stanley Black & Decker Company Profile

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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.

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