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SWK · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Stanley Black & Decker, Inc. (SWK) stock moving?
Stanley Black & Decker reported Q3 2026 results on Nov 4 with adjusted EPS of $2.31 against a $1.56 estimate, but about $0.67 of that came from net tariff refunds, and sales of $3.7B were slightly below estimates and down 1% (up 4% organically, with volume up 6% and pricing down 2%). Excluding the refund benefit, the underlying story is organic growth and margin expansion, with adjusted gross margin of 39.4%, up 780 basis points including about 430 basis points from refunds. Management raised FY2026 adjusted EPS guidance to $5.95-$6.25 from $5.20-$5.80, but guided to roughly flat full-year sales, so the raise depends heavily on margins and one-time items. It also authorized a new $1B buyback and signaled 2027 price increases to offset steel and component cost inflation. Analysts responded with higher targets: Citigroup kept a Buy and raised its target to $140, while Wells Fargo kept an Equal-Weight and raised its target to $115. Price action confirms the report: shares rose from about $104.6 on Nov 3 to an intraday high of $122.68 on Nov 4 on volume of 6.5M, roughly three times the typical level. The stock has since traded between about $113 and $119 and closed at $116.44 on Nov 10, holding well above the pre-earnings range. A Nov 9 fiscal.ai item reports a dividend payout cut, which conflicts with the $0.84 Q4 dividend declared Oct 29 and is unconfirmed, so it is a key uncertainty to verify against company filings.
News behind the analysis
- Stanley Black & Decker Reports Q3 2026 Results and Raises GuidanceReported Q3 2026 adjusted EPS of $2.31, above analyst expectations, and announced a new $1 billion share repurchase authorization.
- Stanley Black & Decker Q3 Adj. EPS $2.31 (Includes $0.67 From Refunds) Beats $1.56 Estimate, Sales $3.731B Miss $3.741B EstimateAdjusted EPS beat the $1.56 estimate, but about $0.67 of it came from tariff refunds, and sales of $3.731B slightly missed the $3.741B estimate.
- Stanley Black & Decker Raises FY2026 Adj EPS Guidance from $5.20-$5.80 to $5.95-$6.25 vs $5.61 EstFull-year 2026 adjusted EPS guidance was raised to $5.95-$6.25 from $5.20-$5.80, above the $5.61 estimate.
- Stanley Black & Decker Raises FY2026 GAAP EPS Guidance from $4.60-$5.45 to $5.45-$5.85 vs $5.65 EstFull-year 2026 GAAP EPS guidance was raised to $5.45-$5.85, slightly above the $5.65 estimate.
- Conference call: Stanley Black & Decker Sees FY 2026 Sales expected to be flat YoYManagement expects full-year 2026 sales to be roughly flat year over year, so the guidance raise rests on margins rather than top-line growth.
- Stanley Black & Decker Signals 2027 Price Hikes As Steel, Component Costs SurgeShares reached a 52-week high after Q3 earnings topped estimates and margins expanded, with the company signaling 2027 price increases to offset steel and component costs.
- Citigroup Maintains Buy on Stanley Black & Decker, Raises Price Target to $140Citigroup kept its Buy rating and raised its price target to $140 after the third-quarter report.
- Wells Fargo Maintains Equal-Weight on Stanley Black & Decker, Raises Price Target to $115Wells Fargo kept its Equal-Weight rating and raised its price target from $90 to $115.
- Stanley Black & Decker Reduces Dividend PayoutA fiscal.ai item reports a dividend payout reduction, but it conflicts with the $0.84 Q4 dividend declared Oct 29, and no primary company filing confirms it.
About Stanley Black & Decker, Inc.
Stanley Black & Decker is a Connecticut-based maker of hand tools, power tools, outdoor equipment and industrial fasteners, sold under brands such as DEWALT, STANLEY, CRAFTSMAN, BLACK+DECKER and Cub Cadet. It is one of the world's biggest tool companies. It is selling non-core businesses, including its aerospace fasteners unit in 2026 and the Hustler mower business, so it can focus on tools and outdoor products.
How it makes money
Almost all of its sales (roughly 90%) come from the Tools & Outdoor segment, which sells power tools, hand tools, accessories and outdoor power equipment to professional tradespeople and do-it-yourself buyers. Most of these sales go through large retailers such as Home Depot and Lowe's. The remaining roughly 10% comes from Engineered Fastening, which sells fasteners and assembly systems to automotive and industrial manufacturers. Quarterly revenue is about $3.7–4.0 billion. The stock also pays a long-running dividend.
What usually moves SWK
- US housing, home renovation and construction activity
- Tariffs and costs of sourcing from overseas
- Retailer inventory levels and consumer DIY demand
- Progress on cost-cutting and margin recovery
- Raw material and freight costs