Stanley Black & Decker Q2 Earnings: $2.33 EPS, Raises 2026 Guidance, $250M Buyback
SWK sits 55% above its 52-week low of $61.9 on elevated volume (2.1× avg).
Summary
Stanley Black & Decker reported Q2 GAAP EPS of $2.33, raised full-year 2026 guidance, and executed $250M in buybacks, signaling strong operational momentum and capital discipline.
Key Events · Earnings and Guidance · SWK
-
Q2 Earnings Beat
GAAP EPS of $2.33 vs $0.67 prior year; adjusted EPS of $1.57 vs $1.08. Revenue flat at $3.96B, organic growth +3%.
-
Margin Surge
Gross margin expanded 600 bps to 33.0% (adjusted 33.7%), aided by tariff refunds (~250 bps) and productivity gains.
-
Guidance Raised
2026 GAAP EPS guidance raised to $4.60-$5.45 (from $4.15-$5.35); adjusted EPS to $5.20-$5.80 (from $4.90-$5.70). Free cash flow guidance lifted to $600-$800M.
-
Capital Deployment
Repurchased 3.2M shares for $250M in Q2; reduced debt by $1.7B, aided by $1.8B CAM divestiture proceeds.
Analysis · SWK · Manufacturing
A standout quarter for Stanley Black & Decker was anchored by GAAP EPS of $2.33, far surpassing the prior year's $0.67, as gross margin expanded 600 basis points to 33.0% and a $273.7M gain on the CAM divestiture boosted results. Adjusted EPS of $1.57 also comfortably exceeded the year-ago $1.08. Reflecting confidence in sustained margin recovery and organic growth, the company raised its full-year 2026 GAAP EPS guidance to $4.60-$5.45 (from $4.15-$5.35) and adjusted EPS to $5.20-$5.80 (from $4.90-$5.70). Free cash flow guidance was lifted to $600-$800M as well. The quarter featured a $250M share buyback (3.2M shares) and $1.7B in debt reduction, funded by proceeds from the CAM sale and strong operating cash flow of $763M. While tariff refunds provided a tailwind, underlying operational improvements are evident. With the stock near its 52-week high, these results reinforce the turnaround narrative.
At the time of this filing, SWK was trading at $95.70 on NYSE in the Manufacturing sector, with a market capitalization of approximately $14.6B. The 52-week trading range was $61.90 to $96.04. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.