Stanley Black & Decker earnings lift outlook as tariff refunds boost profit
Earnings results
- EPS beat +49.0%
Actual: $2.31 · Cons.: $1.55 (Adjusted diluted EPS, including tariff refunds; MarketBeat consensus)
- Revenue miss -0.2%
Actual: $3.7316B · Cons.: $3.74B (Reported net sales; MarketBeat consensus)
- Guidance
Raised 2026 adjusted EPS to $5.95–6.25 from $5.20–5.80; free cash flow to $1.0–1.2 billion from $600–800 million. Tariff refunds contribute to the increase.
Earnings and the stock move
Stanley Black & Decker released third-quarter earnings before open on November 4 and raised its 2026 adjusted EPS and free-cash-flow outlook. Net tariff refunds contributed about $0.67 to quarterly EPS and 4.3 percentage points to gross margin, while organic sales growth showed better underlying tool demand. Shares rose during trading following the release. The investor question is how much of the improved profit and cash generation can persist when refund benefits fade.
Q3 2026 ended October 3 earnings recap
Stanley Black & Decker raised its profit and cash-flow outlook after earnings benefited from tariff refunds and stronger tool demand. The price used for this comparison rose about 12.5% versus the previous close during trading on November 4.
- Adjusted EPS, or profit per share excluding selected costs, was $2.31 versus $1.55 expected. That result still includes about $0.67 per share from net tariff refunds; profit under standard accounting rules was $1.83 per share.
- Revenue was $3.73 billion, slightly below roughly $3.74 billion expected. Sales grew 4% after adjusting for business sales, currency changes and the shift of some outdoor products to licensing.
- The annual adjusted profit forecast increased to $5.95–6.25 per share from $5.2–5.80. Refunds help fund the improvement, so the new range should not all be treated as repeatable operating growth.
- Adjusted gross margin, the share of sales left after product costs, reached 39.4%. Net tariff refunds added about 4.3 percentage points, alongside productivity and product-mix improvements.
- The free-cash-flow outlook rose to $1–1.2 billion from $600–800 million. That gives the company more flexibility to invest and return capital, but the outlook includes tariff-refund benefits.
- The board approved another $1 billion of share repurchases after the company bought back about $250 million in the quarter. Authorization permits future purchases; it does not mean all the money has been spent.
Watch tool demand, pricing and profit margins as refund benefits fade. Weak automotive demand and a reversal in recent sales momentum remain risks; the charts show November 3, before the earnings release and trading-day rise.
Financials and technicals
Charts through Nov 3, 2026. The session move above may reflect later news.
Technical setup and risks
At the completed November 3 close of $104.62, the price was above its 20-day average near $95.87 and 50-day average near $93.68. RSI near 71 suggested an already strong recent advance. Prior support at $96.9–100.20 reflects late-October lows and consolidation; resistance at $105.2–107.70 reflects October 30 through November 3 highs. Holding above that old resistance after earnings would strengthen the breakout; losing support would weaken the recovery. These are approximate reference zones, and the November 4 rise is separate from the completed daily charts.
AI-assisted research with source and calculation checks. Prices may be delayed. Technical charts use the stated completed session, which can precede the quoted intraday move. Educational information; investing involves risk.