AI Takeaway
Snap-on Incorporated delivered solid Q2 2026 results with revenue of $1.31B (+5.2% YoY) and net income of $247.0M (+2.7% YoY), supported by strong operating cash flow of $368.7M (+23.5% YoY), though operating margin compressed slightly to 24.4%.
Revenue
$1.31B
++5.24% YoY
EPS (Basic)
$4.76
++3.70% YoY
Operating Income
$318.8M
++1.72% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue grew 5.2% YoY to $1,308.3M in Q2 2026 from $1,243.2M in Q2 2025, reflecting continued demand for Snap-on's professional tools and equipment solutions across its customer segments.
Source: Source: 10-Q Financial Data, Income Statement
Operating margin declined modestly by approximately 84 basis points YoY to 24.4% from 25.2%, suggesting that revenue growth was partially offset by rising costs, though the company maintained a healthy absolute operating income of $318.8M.
Source: Source: 10-Q Financial Data, Income Statement & Key Ratios
Operating cash flow surged 23.5% YoY to $368.7M, significantly outpacing net income growth of 2.7%, indicating improved working capital management and high earnings quality during the quarter.
Source: Source: 10-Q Financial Data, Cash Flow Statement
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Upgrade to unlockCurrent liabilities jumped 28.9% YoY to $1,289.1M, a notably faster pace than the 9.8% growth in current assets. While the current ratio remains healthy at 3.53, this rapid increase in near-term obligations warrants monitoring for potential liquidity pressure if sustained.
Source: Source: 10-Q Financial Data, Balance Sheet
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Upgrade to unlockReported EPS of $4.69 versus the $4.80 analyst consensus — a -2.3% miss for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.31B | $1.24B | +5.24% |
Operating Income | $318.8M | $313.4M | +1.72% |
Net Income | $247M | $240.5M | +2.70% |
EPS (Basic) | $4.76 | $4.59 | +3.70% |
EPS (Diluted) | $4.69 | $4.51 | +3.99% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.52B | $8.07B | +5.54% |
Current Assets | $4.55B | $4.14B | +9.81% |
Total Liabilities | $2.53B | $2.52B | +0.33% |
Current Liabilities | $1.29B | $999.9M | +28.92% |
Stockholders' Equity | $5.96B | $5.52B | +7.92% |
Cash & Equivalents | $1.75B | $1.43B | +22.19% |
Long-Term Debt | $1.2B | — | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $368.7M | $298.5M | +23.52% |
Investing Cash Flow | $-28.6M | $-32M | +10.63% |
Financing Cash Flow | $-211.1M | $-193.6M | -9.04% |
Dividends Paid | $126.8M | $112.2M | +13.01% |
Share Buybacks | $99.9M | $87.2M | +14.56% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 24.4% | 25.2% | -0.84% |
Net Margin | 18.9% | — | — |
ROE | 4.1% | — | — |
ROA | 2.9% | — | — |
Current Ratio | $3.528 | — | — |
Debt to Equity | $0.425 | — | — |
Other companies in Industrial Machinery & Supplies & Components
Snap-on reported Q2 2026 revenue of $1,308.3M, up 5.2% YoY, and net income of $247.0M, up 2.7% YoY. EPS (diluted) came in at $4.69, a 4.0% increase from $4.51 in Q2 2025, reflecting steady business growth.
The standout highlight was operating cash flow surging 23.5% YoY to $368.7M, well ahead of net income growth, signaling strong earnings quality. However, operating margin compressed slightly to 24.4% from 25.2%, and current liabilities rose sharply by 28.9% YoY, which investors should monitor.
Snap-on returned approximately $226.7M to shareholders in Q2 2026, comprising $126.8M in dividends (up 13.0% YoY) and $99.9M in share buybacks (up 14.6% YoY), reflecting strong confidence in its cash generation.
Snap-on's balance sheet is in excellent shape, with $1,753.3M in cash (up 22.2% YoY), a current ratio of 3.53, and a conservative debt-to-equity ratio of 0.43. Total stockholders' equity grew 7.9% YoY to $5,958.1M, underscoring financial stability.
Snap-on's operating margin declined modestly by about 84 basis points to 24.4% in Q2 2026 from 25.2% in Q2 2025, suggesting cost pressures partially offset strong revenue growth of 5.2%. Net margin remained healthy at approximately 18.9%, indicating the company retained solid bottom-line profitability.