Stanley Black & Decker shares jump 13% after raised 2026 profit forecast

Stanley Black & Decker (SWK) shares rose 13.1% in regular trading as of 3:59 p.m. ET, from a regular-session close of $104.62.

Stanley Black & Decker (SWK) said third-quarter adjusted EPS was $2.31 per share, topping the $1.57 consensus estimate, and raised its 2026 forecast. The results include a benefit from tariff refunds, the company said in its press release.

Revenue was $3.73 billion, below the $3.78 billion estimate, and down 1% from a year earlier.

Here's how the company did:

• Adjusted EPS: $2.31 vs. $1.43 a year earlier, against the $1.57 consensus estimate
• Net sales: $3.73 billion vs. $3.76 billion a year earlier, against the $3.78 billion estimate
• GAAP diluted EPS: $1.83 vs. 34 cents a year earlier

President and CEO Chris Nelson said, "Our third quarter performance reinforces the conviction we have in our full-year outlook and our long-term strategy."

The adjusted EPS figure included a benefit of approximately $0.67 per share from net tariff refunds, according to the company. Organic sales rose 4%, with volume up 6%, offset by pricing down 2% and portfolio changes down 4%.

Gross margin was 39.0%, up 760 basis points from a year earlier.

2026 guidance

The company raised its 2026 GAAP EPS range to $5.45 to $5.85, from the $4.60 to $5.45 range it gave in its July 29 results release.

It also raised and tightened the adjusted EPS range to $5.95 to $6.25, from $5.20 to $5.80.

Free cash flow is now expected to be $1.0 billion to $1.2 billion, revised from $600 million to $800 million. The company said the figure includes the tariff refund received so far this year and projected taxes and fees tied to the CAM divestiture.

The gap between GAAP and adjusted EPS is expected to be about $0.40 to $0.50, mainly charges for footprint and cost actions, partly offset by the gain on the sale of the CAM business.

Segment results

Tools & Outdoor net sales were $3.34 billion, up 2% from a year earlier. Its segment margin was 17.0%, up 520 basis points.

Engineered Fastening net sales were $396 million, down 21%, due to the CAM divestiture. The company completed the sale of CAM on April 6, 2026.

The company recorded $29.5 million of restructuring charges, a $19.7 million asset impairment charge and a $20.4 million loss on the sale of a small Engineered Fastening business.

Cash and buybacks

Cash from operations was $659 million, and free cash flow was $585 million.

The company repurchased about 2.5 million shares for about $250 million in the quarter, fully using the $500 million authorization approved in April 2026.

The board approved a new authorization of up to $1 billion on Oct. 29. It expires Oct. 29, 2029.

On Oct. 1, Debra Crew became Independent Chair of the Board, following the retirement of Executive Chair Donald Allan Jr.