$SWK · STANLEY BLACK & DECKER, INC.
SWK's 10-Q for the quarter ended October 3, 2026 shows net sales of $3,731.6M (down 0.6% YoY from $3,756.0M) but net earnings of $272.1M versus $51.4M a year earlier. Diluted EPS rose to $1.83 from $0.34; adjusted EPS was $2.31. The quarter benefited from a $180.7M pre-tax IEEPA tariff refund gain and a $250.2M year-to-date gain on business sales (CAM divestiture).
- Net earnings $272.1M vs $51.4M YoY; diluted EPS $1.83 vs $0.34.
- Adjusted (non-GAAP) diluted EPS was $2.31, up from GAAP $1.83.
- Net sales $3,731.6M, down 0.6% from $3,756.0M.
- Recognized $180.7M pre-tax IEEPA tariff refund gain in Q3 cost of sales.
- Repurchased $250.9M of common stock in Q3; $518.3M year-to-date.
Shares are up +15.80% to $121.15 today, though the price is -0.27% versus filing time ($121.48), suggesting the earnings-driven move largely preceded or coincided with the filing.
A 5x-plus jump in quarterly net earnings and EPS, driven by tariff refunds and divestiture gains, signals a sharp margin inflection for the tools maker.
The margin recovery (cost of sales down to $2,278.1M from $2,576.9M) reflects the broader tools/industrial trend of tariff-relief and divestiture-driven margin expansion.
IEEPA tariff refunds are recognized under a gain contingency model and remain subject to CBP's phased CAPE processing; further recoveries are not guaranteed. Pending Excel divestiture does not qualify for discontinued operations.