Stanley Black & Decker Surges 13% After Blowout Q3 Earnings, Tariff Refunds and Raised Full-Year Guidance

Stanley Black & Decker posted a sharply better-than-expected third quarter on November 4, 2026, sending shares up 13.2% to become the top performer in the S&P 500 for the day and on pace for the stock's best single-day gain in over six years. Adjusted earnings per share came in at $2.31, beating the consensus estimate of $1.56 by 50% and rising 62% year over year. Net sales of $3.73 billion were roughly in line with estimates, down 1% on a reported basis but up 4% organically.

A key driver of the earnings beat was approximately $0.67 per share in tariff refunds, which also added roughly 430 basis points to gross margin. Total gross margin expanded 760 basis points year over year to 39.0%, while adjusted gross margin reached 39.4%, up 780 basis points. Free cash flow of $585 million was nearly triple the $222 million analysts had forecast. By segment, Tools and Outdoor generated $3.34 billion in revenue, up 2% year over year and 4% organically, while Engineered Fastening contributed $395.5 million, down 21% year over year but up 2% organically.

The company raised its full-year 2026 adjusted EPS guidance to a range of $5.95 to $6.25, up from the prior range of $5.20 to $5.80 and well above the consensus estimate of $5.61. Free cash flow guidance was lifted to $1.0 billion to $1.2 billion from the previous $600 million to $800 million range. Stanley Black & Decker also announced a new $1 billion share repurchase authorization, having already executed approximately $250 million in buybacks. Goldman Sachs reiterated its Neutral rating on the stock following the results. The stock's rally was also boosted by election results, with a MarketWatch report noting it was among the biggest gainers on the day Democrats defeated Trump, reducing uncertainty around tariff policy.