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Stanley Black Gears Up to Report Q2 Earnings: What's in the Cards?

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Key Takeaways

  • Stanley Black & Decker is expected to post higher Q2 earnings despite slightly lower revenues.
  • SWK may benefit from DEWALT momentum, outdoor product demand and ongoing cost-efficiency initiatives.
  • Stanley Black & Decker faces headwinds from DIY softness, aerospace labor shortages and higher costs.

Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release second-quarter 2026 results on July 29, before market open.

The Zacks Consensus Estimate for this New Britain, CT-based tool maker’s second-quarter revenues is pegged at $3.93 billion, indicating a decline of 0.3% from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.20 per share. The figure indicates growth of 11.1% from the year-ago quarter’s number.

The consensus estimate for earnings has declined 0.8% over the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 61.6%.

Let’s see how things have shaped up for Stanley Black before the announcement.

Factors Likely to Have Shaped SWK’s Quarterly Performance

Stanley Black’s Tools & Outdoor segment’s results are expected to benefit from the solid momentum in its DEWALT business and recovery in demand for outdoor products. However, softness in the DIY market and depressing demand for hand tools remain concerning. We expect the Tools & Outdoor segment’s revenues to increase 2.3% year over year to $3.54 billion.

Strength in the aerospace market and solid momentum in the automotive market are expected to have aided the Engineered Fastening segment’s second-quarter performance. However, the company divested its business unit, Consolidated Aerospace Manufacturing LLC (“CAM”), in April 2026, which is likely to weigh on the segment’s top-line results. We expect the Engineered Fastening segment’s revenues to decline 17.8% year over year to $397 million.

Stanley Black has been incurring high costs and operating expenses over time, which are likely to have weighed on its performance. Also, supply-chain challenges and labor shortages, especially in the aerospace market, are likely to affect its results in the to-be-reported quarter.

Nevertheless, SWK’s focus on cost reduction and operational efficiency is likely to have supported its bottom line in the to-be-reported quarter. The company is expected to have put up a healthy margin performance, aided by supply-chain transformation and inventory reduction efforts.

Earnings Whisper

Our proven model does not conclusively predict an earnings beat for Stanley Black this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Stanley Black has an Earnings ESP of -0.18%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: SWK presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable Combination

Here are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Crane Company (CR - Free Report) has an Earnings ESP of +4.73% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on July 28.

Crane’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.3%.

Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 30.

Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while matching the mark in two, the average surprise being 2.4%.

RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 2 at present. The company is scheduled to release first-quarter fiscal 2027 earnings on July 31, before market open. 

RBC Bearings’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.2%.

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