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FY2026 Q2
Improving
Stanley Black & Decker, Inc. earnings call
Buzzberg read
Power tools organic revenue grew 8% in Q2.
Company reported strong Q2 results with revenue and EPS exceeding expectations, raised full-year 2026 EPS guidance, and provided a bullish outlook on tools and outdoor growth, driven by demand in the commercial and industrial channel. Q2 adjusted EPS of $1.57 beat guidance by 37c, on strong organic revenue growth (3%) and gross margin expansion.
Buzzberg read Power tools organic revenue grew 8% in Q2. Company reported strong Q2 results with revenue and EPS exceeding expectations, raised full-year 2026 EPS guidance, and provided a bullish outlook on tools and outdoor growth, driven by demand in the commercial and industrial channel. Q2 adjusted EPS of $1.57 beat guidance by 37c, on strong organic revenue growth (3%) and gross margin expansion. Read full analysisCollapse analysis
Company reported strong Q2 results with revenue and EPS exceeding expectations, raised full-year 2026 EPS guidance, and provided a bullish outlook on tools and outdoor growth, driven by demand in the commercial and industrial channel. Q2 adjusted EPS of $1.57 beat guidance by 37c, on strong organic revenue growth (3%) and gross margin expansion.
- Full-year 2026 EPS guidance raised to $5.20-$5.80 from $5.00-$5.60 prior; revenue outlook maintained for ~3% organic growth.
- Gross margin expansion and productivity initiatives delivered 33.7% adjusted gross margin, up 620bps year-over-year, with 34-35% targeted for H2 2026.
- Growth in U.S. commercial and industrial channel is approaching 10% of total tools sales, driven by mega projects in data centers and power.
ENGINEERED_FASTENING Revenue$3.7BReported
Revenue$3.9607B+3% QoQ
EPS$1.57Reported
Gross margin32.97%Reported
6 grounded callouts
What matters now
The highest-signal changes from the call.
Demand
U.S. commercial and industrial channel grew low double digits.
Guidance
Full-year adjusted EPS guidance raised to $5.20-$5.80.
Show 3 more callouts
Buybacks
Company expects to pay down $1.7B debt and buy back $250M shares.
Margins
Gross margin target of 34-35% in second half reaffirmed.
Innovation
Craftsman V20 advanced batteries driving strong platform performance.
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| ENGINEERED_FASTENING Revenue | $3.7B | Reported |
| Revenue | $3.9607B | +3% QoQ |
| EPS | $1.57 | Reported |
| Gross margin | 32.97% | Reported |
| Operating margin | 7.8% | Reported |
| Free cash flow | $0.6982B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $5.20–$5.80Above consensus | $5.50 | Raised |
| Free cash flow | FY2026 | $0.6B–$0.8B | $0.7B | Raised |
| Operating marginTOOLS_AND_OUTDOOR | FY2026 Q3 | 34%–35% | 34.5% | Guided |
AI, capex & demand read
Management read
Confident
Management expresses confidence in their strategy, execution, and ability to achieve full-year targets despite geopolitical uncertainty and inflationary pressures.
all 6 named companies below
Companiesreturns since call
Customers
ANDURIL
Customers
Chris Nelson
Indirect reference to the ecosystem around large projects, but no direct mention of Anduril in the transcript.
Evidence
“We partner with local distributors to offer on-site product availability...”
Supply chain
Supply chain
Patrick Hallinan
Manufacturing shift for U.S. tools business from China to North America and USMCA compliance will drive second-half gross margin improvements. — Supply chain reallocation affects cost structures and potential competitiveness in the tools market.
Evidence
“We continue to make progress on USMCA compliance and shifting production for our US tools business from China to North America.”
Supply chain
Patrick Hallinan
Persistent inflationary pressures from battery metals, tungsten, oil, and oil derivatives are expected to neutralize tariff tailwinds for 2026 guidance. — Commodity cost changes impact manufacturing and may alter supply chain dynamics for tool producers.
Evidence
“Given inflationary pressures remain persistent, it appears more likely than not a price increase will be necessary by 2027.”
External signals
Supply-chain alpha · 5returns since call
Manufacturing shift for U.S. tools business from China to North America and USMCA compliance will drive second-half gross margin improvements.
Battery metals, tungsten, oil, and oil derivatives inflation are offsetting tariff tailwinds, with a likely price increase by 2027.
Persistent inflationary pressures from battery metals, tungsten, oil, and oil derivatives are expected to neutralize tariff tailwinds for 2026 guidance.
Evidence
“This temporary tariff tailwind, however, is still being offset by persistent inflationary pressures from battery metals, tungsten, Oil, and Oil Derivatives.”
The temporary tariff tailwind from Section 122 tariffs is expected to reverse within a few months as new Section 301 tariffs are implemented at prior IEPA levels.
Evidence
“We maintain our view that the new Section 301 tariffs are likely to be introduced during the next few months at the same level as the old IEPA tariffs”
The U.S. commercial & industrial channel, driven by non-residential construction (data centers, power generation), is set to approach 10% of total TO&S sales in 2026.
Evidence
“we expect our U.S. commercial and industrial channel annual sales to approach 10% of total tools and outdoor sales in 2026”
Methodology & coverage
Management-only analysis. All 6 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.