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Stanley Black & Decker shares surge on improved margins and cash flow outlook
After its Q2 FY2026 results on July 29, Stanley Black & Decker lifted its 2026 adjusted EPS outlook to $5.20 to $5.80 and raised its free cash flow forecast to $600 to $800 million.
Yahoo Finance highlights that Stanley Black & Decker has outperformed both the S&P 500 and its industrial sector peers, with shares up 51.1% over the past year versus 22.4% for the S&P 500.
The outlet attributes part of the momentum to the companys Q2 FY2026 results released July 29, when shares rose 2.7% in the following session as investors focused on improving profitability and strong cash generation.
In the quarter, net sales were $3.96 billion, with marginal year over year growth, while organic sales increased 3%, driven by higher volumes, especially in the Tools & Outdoor segment.
Yahoo Finance also points to margin gains, with adjusted gross margin rising to 33.7% from 27.5% and adjusted EBITDA margin improving to 11.3% from 8.1%, alongside a 45% jump in adjusted EPS to $1.57, and a raised full-year outlook including $600 to $800 million in free cash flow.
According to Yahoo Finance, analysts expect EPS to grow 17.3% year over year to $5.48 for the fiscal year ending in December, and the company has topped consensus estimates in each of the last four quarters.
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