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

Key Points

• Stanley Black & Decker reported an adjusted EPS of $0.80 vs. a $0.61 consensus and revenue of $3.85B (up ~2.7% y/y), with adjusted gross margin ~30.2% and adjusted EBITDA margin 9.2%, delivering a clear quarterly beat.
• The company raised FY‑2026 adjusted EPS guidance to $4.90–$5.70, closed the sale of its aerospace fasteners unit for about $1.8B (~$1.6B net) to pay down debt, authorized $500M in buybacks, and targets roughly 2.5x net debt/EBITDA by year‑end.
• Stanley announced a quarterly dividend of $0.83 (annualized yield ~4.4%) but has a high payout ratio (~125%), and analysts flagged weak cash conversion and margin pressure as near‑term concerns that weighed on the stock.

Stanley Black & Decker (NYSE:SWK - Get Free Report) announced its earnings results on Wednesday. The industrial products company reported $0.80 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.19, FiscalAI reports. Stanley Black & Decker had a net margin of 2.66% and a return on equity of 7.90%. 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 business posted $0.75 EPS. The company's quarterly revenue was up 2.7% on a year-over-year basis. 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 Stock Performance

NYSE:SWK traded down $2.35 during mid-day trading on Wednesday, reaching $75.98. The company's stock had a trading volume of 3,142,523 shares, compared to its average volume of 2,021,389. Stanley Black & Decker has a 12-month low of $58.23 and a 12-month high of $93.37. The firm's fifty day moving average price is $75.22 and its two-hundred day moving average price is $75.18. The company has a current ratio of 1.14, a quick ratio of 0.35 and a debt-to-equity ratio of 0.52. The stock has a market cap of $11.80 billion, a P/E ratio of 28.67, a PEG ratio of 1.14 and a beta of 1.20.

Stanley Black & Decker Dividend Announcement

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

Analyst Upgrades and Downgrades

SWK has been the topic of a number of research reports. Robert W. Baird dropped their target price on shares of Stanley Black & Decker from $85.00 to $82.00 and set a "neutral" rating on the stock in a report on Tuesday, April 21st. UBS Group dropped their target price on shares of Stanley Black & Decker from $105.00 to $98.00 and set a "buy" rating on the stock in a report on Monday, January 5th. Morgan Stanley boosted their target price on shares of Stanley Black & Decker from $80.00 to $87.00 and gave the company an "equal weight" rating in a report on Monday, February 23rd. Wells Fargo & Company dropped their target price on shares of 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, Citigroup boosted their target price on shares of Stanley Black & Decker from $90.00 to $100.00 and gave the company a "buy" rating in a report on Friday, February 6th. Four investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Stanley Black & Decker currently has an average rating of "Hold" and a consensus price target of $85.22.

Hedge Funds Weigh In On Stanley Black & Decker

A number of hedge funds have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD raised its position in Stanley Black & Decker by 1.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 9,898,190 shares of the industrial products company's stock worth $735,239,000 after buying an additional 101,769 shares during the last quarter. State Street Corp raised its position in Stanley Black & Decker by 2.3% in the 2nd quarter. State Street Corp now owns 9,423,438 shares of the industrial products company's stock worth $638,438,000 after buying an additional 215,960 shares during the last quarter. Dimensional Fund Advisors LP raised its position in Stanley Black & Decker by 12.8% in 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 buying an additional 555,103 shares during the last quarter. Invesco Ltd. raised its position in Stanley Black & Decker by 9.7% in the 4th quarter. Invesco Ltd. now owns 3,328,893 shares of the industrial products company's stock worth $247,270,000 after buying an additional 294,887 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC increased its position in shares of Stanley Black & Decker by 9.0% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 3,103,941 shares of the industrial products company's stock valued at $230,716,000 after purchasing an additional 255,295 shares during the last quarter. Hedge funds and other institutional investors own 87.77% of the company's stock.

Stanley Black & Decker News Summary

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

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.

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