AI Takeaway
Snap-on delivered Q2 FY2026 revenue of $1,334.8M (+4.2% YoY) and diluted EPS of $4.96 (+5.1% YoY), with operating margin slightly compressing to 25.2% from 25.5% as higher personnel and technology costs offset gross margin gains from RCI initiatives and volume growth.
Revenue
$1.33B
++4.19% YoY
EPS (Basic)
$5.04
++5.00% YoY
Operating Income
$336.4M
++2.78% YoY
Filed · Source: SEC EDGAR 10-Q filing
Snap-on (SNA) reported Q2 FY2026 revenue of $1.33B, up 4.2% year over year. The company posted net income of $260.6M, up 4.1% from a year earlier, with diluted EPS of $4.96.
Net sales of $1,235.1 million in Q2 2026 (non-financial-services basis) increased $55.7 million, or 4.7%, reflecting a $35.5 million (3.0%) organic gain, $11.5 million of acquisition-related sales (Diesel Laptops and Hi-Force), and $8.7 million of favorable foreign currency translation.
Source: 10-Q Item 2 MD&A
Gross profit of $635.2 million improved 90 bps to 51.4% of net sales, primarily reflecting increased sales volumes and savings from the company's Rapid Continuous Improvement (RCI) initiatives.
Source: 10-Q Item 2 MD&A
Commercial & Industrial Group segment net sales rose 13.8% to $395.8 million with operating margin jumping to 16.8% from 13.5% last year, driven by double-digit gains in Asia Pacific, European hand tools, and specialty torque/power tools operations.
Source: 10-Q Item 2 MD&A
Snap-on acquired Diesel Laptops, LLC for $99.7 million (June 8, 2026) to expand diagnostics for commercial trucks/off-highway vehicles, and Hi-Force Group Holdings Ltd. for $58.0 million (April 30, 2026) to expand high-pressure hydraulic tools and torque equipment offerings.
Source: 10-Q Item 2 MD&A
Repair Systems & Information Group operating earnings declined to $115.1 million (24.0% margin, down from 25.6%) due to higher personnel/technology costs and lower-margin product mix, while Snap-on Tools Group operating earnings slipped to $115.1 million (22.6% margin, down from 23.8%) on increased personnel and freight costs.
Source: 10-Q Item 2 MD&A
Operating expenses rose 8.9% YoY in Q2 to $366.3 million (29.6% of net sales, up 110 bps), driven by increased personnel costs and expanded technology investments, which is compressing operating margin despite gross margin gains.
Source: 10-Q Item 2 MD&A
Financial services revenue declined 2.0% YoY to $99.7 million in Q2, primarily due to a lower year-over-year average portfolio, and originations fell 4.1% to $281.0 million, signaling potential softening demand in the credit/finance channel.
Source: 10-Q Item 2 MD&A
The filing cites disruptions related to tariffs and other trade or sanction issues, and global supply chain inefficiencies as risks; foreign currency effects created 20-40 bps of margin headwinds in segments like Repair Systems & Information Group during the first six months of 2026.
Source: 10-Q Item 2 MD&A
Segment operating earnings for Repair Systems & Information Group fell 3.9% YoY to $115.1 million in Q2, with margin contracting to 24.0% from 25.6%, driven by higher sales of lower gross-margin products and increased personnel/technology costs, alongside a decline in OEM dealership activity.
Source: 10-Q Item 2 MD&A
Current liabilities increased 40.0% YoY to $1,317.9 million, significantly outpacing the 7.2% growth in current assets, which could indicate increased short-term obligations though the current ratio remains healthy at 3.43x.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.33B | $1.28B | +4.19% |
Operating Income | $336.4M | $327.3M | +2.78% |
Net Income | $260.6M | $250.3M | +4.12% |
EPS (Basic) | $5.04 | $4.80 | +5.00% |
EPS (Diluted) | $4.96 | $4.72 | +5.08% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $8.64B | $8.2B | +5.35% |
Current Assets | $4.52B | $4.22B | +7.21% |
Total Liabilities | $2.57B | $2.46B | +4.56% |
Current Liabilities | $1.32B | $941.5M | +39.98% |
Stockholders' Equity | $6.04B | $5.72B | +5.70% |
Cash & Equivalents | $1.64B | $1.46B | +12.78% |
Long-Term Debt | $1.2B | $1.2B | +0.02% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $640.2M | $535.7M | +19.51% |
Investing Cash FlowYTD | $-223.7M | $-78M | -186.79% |
Financing Cash FlowYTD | $-396.9M | $-364.5M | -8.89% |
Dividends PaidYTD | $253.2M | $224M | +13.04% |
Share BuybacksYTD | $191.3M | $166.2M | +15.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 25.2% | 25.5% | -0.35% |
Net Margin | 19.5% | — | — |
ROE | 4.3% | — | — |
ROA | 3.0% | — | — |
Current Ratio | $3.433 | — | — |
Debt to Equity | $0.426 | — | — |
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%.
Snap-on Incorporated (SNA) delivered modest revenue growth of 0.9% to $5.16B in FY2025, but faced slight margin compression as net income declined 2.6% to $1.02B amid higher operating costs and increased R&D investment.
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The filing does not disclose analyst consensus estimates, so a direct beat/miss comparison cannot be confirmed from this 10-Q. However, Snap-on reported revenue of $1,334.8M (+4.2% YoY) and diluted EPS of $4.96 (+5.1% YoY), both showing solid growth versus the prior-year quarter.
Snap-on grew net sales 4.7% (non-financial-services basis) to $1,235.1M with gross margin expanding 90 bps to 51.4% on RCI savings, while operating margin slipped slightly to 25.2% from 25.5% due to higher personnel and technology costs. The Commercial & Industrial Group was a standout, with segment operating earnings up 41.8% YoY to $66.5M.
Total revenue reached $1,334.8M, up 4.2% YoY, driven by a $35.5M (3.0%) organic sales gain, $11.5M from recent acquisitions (Diesel Laptops and Hi-Force), and $8.7M of favorable foreign currency translation, according to the MD&A.
The MD&A cites risks including tariffs and trade disruptions, supply chain inefficiencies, and rising personnel/technology costs that pressured operating margins, particularly in the Repair Systems & Information Group where margin fell to 24.0% from 25.6%. Financial services revenue also declined 2.0% YoY due to a lower average loan/lease portfolio.
Snap-on shows strong liquidity with a current ratio of 3.43x and a conservative debt-to-equity ratio of 0.43, supported by $1,644.7M in cash and equivalents. Year-to-date operating cash flow of $640.2M (up 19.5% YoY) further underscores healthy cash generation to fund dividends ($253.2M YTD) and buybacks ($191.3M YTD).