Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
SWK reported Q1 FY2026 revenue of $3.85B (+2.7% YoY) but net income fell 34.1% to $59.6M, reflecting persistent cost pressures and negative operating cash flow of -$388.8M.
Revenue
$3.85B
+2.72% YoY
EPS (Diluted)
$0.39
-35.00% YoY
Source: SEC XBRL
Stanley Black & Decker (SWK) reported Q1 FY2026 revenue of $3.85B, up 2.7% year over year. Operating cash flow was negative $388.8M. SWK's fiscal Q1 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 1.57 | 1.23 | Beat +27.9% |
| Mar 2026This filing | 0.80 | 0.63 | Beat +26.8% |
| Dec 2025 | 1.41 | 1.29 | Beat +8.9% |
| Sep 2025 | 1.43 | 1.19 | Beat +19.8% |
Adjusted (non-GAAP) EPS of $0.80 versus the $0.63 analyst consensus — a +26.8% beat for Mar 2026. Analyst consensus is quoted on the adjusted (non-GAAP) basis the street uses. GAAP diluted EPS for this quarter was $0.39.
Compiled by AI from this SEC filing
SWK grew Q1 FY2026 revenue by 2.7% YoY to $3.85B, but net income declined sharply by 34.1% to $59.6M, indicating that top-line growth is being outpaced by rising costs and expenses.
Source: 10-Q Income Statement
Cost of Revenue rose 2.5% YoY to $2.69B, and SG&A expenses increased 3.0% YoY to $877.7M, together consuming a large portion of incremental revenue and compressing profitability.
Source: 10-Q Income Statement
Long-term debt declined meaningfully by 15.1% YoY to $4.76B from $5.60B, suggesting the company is making progress on deleveraging its balance sheet.
Source: 10-Q Balance Sheet
Operating cash flow remained negative at -$388.8M in Q1 FY2026, though it improved 7.4% YoY from -$420.0M, indicating ongoing working capital challenges typical of Q1 seasonality for industrial companies.
Source: 10-Q Cash Flow Statement
Financing cash flow of +$508.2M more than offset the negative operating and investing cash flows, helping the company maintain a cash balance of $333.7M at quarter end.
Source: 10-Q Cash Flow Statement
Compiled by AI from this SEC filing · 2 high, 3 medium, 0 low
SWK generated -$388.8M in operating cash flow in Q1 FY2026, continuing a pattern of cash consumption in the first quarter. Reliance on financing activities (+$508.2M) to fund operations raises questions about the sustainability of liquidity management.
Source: 10-Q Cash Flow Statement
Net income dropped 34.1% YoY to $59.6M despite a 2.7% revenue increase, implying that cost inflation and operating expenses are eroding profitability faster than revenue growth can compensate. EPS fell from $0.60 to $0.39, a 35% decline.
Source: 10-Q Income Statement
Although long-term debt declined 15.1% YoY to $4.76B, the company still carries a substantial debt load relative to its stockholders' equity of $8.98B. Continued debt service obligations constrain financial flexibility.
Source: 10-Q Balance Sheet
Total assets fell 4.0% YoY to $21.60B, driven by a 7.2% decline in current assets to $6.51B, which may reflect inventory drawdowns or reduced receivables that could signal weaker near-term demand.
Source: 10-Q Balance Sheet
Net margin stands at approximately 1.55% in Q1 FY2026, leaving very little buffer against any further cost increases, demand softness, or macroeconomic headwinds such as tariffs or supply chain disruptions.
Source: 10-Q Income Statement & Key Ratios
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.85 $B | 3.74 $B | +2.72% |
Cost of Revenue $B | 2.69 $B | 2.62 $B | +2.49% |
Net Income $M | 59.60 $M | 90.40 $M | -34.07% |
EPS (Basic) $ | 0.39 $ | 0.60 $ | -35.00% |
EPS (Diluted) $ | 0.39 $ | 0.60 $ | -35.00% |
SG&A Expense $M | 877.70 $M | 852.50 $M | +2.96% |
Answers draw on this SEC filing and the data on this page
In Q2 FY2026, Stanley Black & Decker expanded gross margin to 33.0% and surged net income to $351.3M (+244.7% YoY), bolstered by the $1.8B sale of its CAM business, tariff refunds, and significant debt reduction.
SWK delivered a 36.6% surge in net income to $401.9M in FY2025 despite a 1.5% revenue decline to $15.1B, driven by meaningful cost reductions and a $844.9M reduction in long-term debt.
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