$SWK · STANLEY BLACK & DECKER, INC.
Stanley Black & Decker reported Q3 FY2026 results: net sales of $3.732B (down 1% total, up 4% organic), GAAP EPS of $1.83 and adjusted EPS of $2.31, both boosted by ~$0.67 from net IEEPA tariff refunds. Gross margin rose to 39.0% (up 760 bps), with ~430 bps from tariff refunds. The company raised FY2026 GAAP EPS guidance to $5.45–$5.85 and adjusted EPS to $5.95–$6.25, and lifted free cash flow guidance to $1.0B–$1.2B. It also announced a new $1B share repurchase authorization (expiring Oct 29, 2029) after fully using its prior $500M authorization.
- Q3 net sales $3.732B, down 1% total but up 4% organic.
- Adjusted EPS $2.31 and GAAP EPS $1.83, each including ~$0.67 tariff-refund benefit.
- Gross margin 39.0%, up 760 bps; ~430 bps from net tariff refunds.
- FY2026 adjusted EPS guidance raised to $5.95–$6.25 from $5.20–$5.80.
- New $1B buyback authorization approved Oct 29, 2026, expiring Oct 29, 2029.
Markets closed — no regular-session reaction yet; extended-hours move not captured here.
A guidance raise, margin expansion, and a fresh $1B buyback signal management confidence, though much of the beat is tariff-refund-driven.
Tools & Outdoor organic growth of 4% and margin expansion contrast with Engineered Fastening, where sales fell 21% on the CAM divestiture and automotive demand pressure.
A large portion of Q3 EPS and margin gains came from one-time IEEPA tariff refunds (~$0.67 EPS, ~430 bps margin), which may not recur. Engineered Fastening faces automotive demand pressure and a $20.4M loss on a small business sale.