Operating margins have contracted to 6.0% as of 2026Q1, reflecting persistent challenges in scaling efficiency amidst stagnant revenue growth that fluctuated between a 5.1% decline and a 2.7% increase over the last ten quarters.
| Metric | TTM | Jan'26 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 15.23B | 15.13B | 15.37B | 15.78B | 16.95B | 15.28B | 13.06B | 12.91B | 13.98B | 12.97B | 11.41B | 11.17B | 11.34B | 10.89B | 10.15B | 10.38B | 8.41B | 3.74B | 4.43B | 4.48B | 4.02B | 3.29B | 3B | 2.68B | 2.59B | 2.62B | 2.75B | 2.75B | 2.73B | 2.67B | 2.67B |
| Revenue Growth % | -0.06% | -1.53% | -2.63% | -6.88% | 10.9% | 17.03% | 1.12% | -7.65% | 7.83% | 13.67% | 2.1% | -1.47% | 4.12% | 7.31% | -2.2% | 23.39% | 125.03% | -15.57% | -1.28% | 11.58% | 22.32% | 9.61% | 11.92% | 3.28% | -1.2% | -4.53% | -0.11% | 0.83% | 2.23% | -0.05% | 1.77% |
| Cost of Goods Sold | 10.66B | 10.61B | 10.76B | 11.68B | 12.84B | 10.2B | 8.6B | 8.64B | 9.08B | 8.13B | 7.12B | 7.16B | 7.22B | 6.94B | 6.42B | 6.52B | 5.44B | 2.23B | 2.75B | 2.79B | 2.56B | 2.1B | 1.89B | 1.79B | 1.76B | 1.7B | 1.75B | 1.73B | 1.71B | 1.71B | 1.72B |
| COGS % of Revenue | - | 70.14% | 70.06% | 74.02% | 75.79% | 66.76% | 65.88% | 66.95% | 64.96% | 62.72% | 62.4% | 64.06% | 63.67% | 63.74% | 63.26% | 62.88% | 64.67% | 59.64% | 62.24% | 62.26% | 63.67% | 64.04% | 63.18% | 66.66% | 67.77% | 64.83% | 63.72% | 62.81% | 62.77% | 64.09% | 64.43% |
| Gross Profit | 4.57B | 4.52B | 4.6B | 4.1B | 4.1B | 5.08B | 4.45B | 4.27B | 4.9B | 4.83B | 4.29B | 4.01B | 4.12B | 3.95B | 3.73B | 3.85B | 2.97B | 1.51B | 1.67B | 1.69B | 1.46B | 1.18B | 1.1B | 892.8M | 835.8M | 923.1M | 997.4M | 1.02B | 1.02B | 958.5M | 950M |
| Gross Margin % | 30.03% | 29.86% | 29.94% | 25.98% | 24.21% | 33.24% | 34.12% | 33.05% | 35.04% | 37.28% | 37.6% | 35.94% | 36.33% | 36.26% | 36.74% | 37.12% | 35.33% | 40.36% | 37.76% | 37.74% | 36.33% | 35.96% | 36.82% | 33.34% | 32.23% | 35.17% | 36.28% | 37.19% | 37.23% | 35.91% | 35.57% |
| Gross Profit Growth % | - | -1.81% | 12.22% | -0.08% | -19.21% | 14.02% | 4.38% | -12.88% | 1.35% | 12.7% | 6.83% | -2.54% | 4.33% | 5.9% | -3.2% | 29.64% | 96.98% | -9.76% | -1.23% | 15.91% | 23.58% | 7.04% | 23.61% | 6.82% | -9.46% | -7.45% | -2.55% | 0.74% | 6% | 0.89% | 3.73% |
| Operating Expenses | 3.39B | 3.36B | 3.25B | 3.19B | 3.19B | 3.01B | 2.51B | 2.5B | 3.01B | 2.96B | 2.62B | 2.49B | 2.56B | 2.55B | 2.36B | 2.45B | 2.09B | 1.02B | 1.11B | 1.06B | 953.9M | 736.8M | 691.3M | 637.8M | 547.2M | 593.7M | 656.6M | 788.6M | 764.4M | 700.1M | 683.2M |
| OpEx % of Revenue | - | 22.24% | 21.16% | 20.22% | 18.82% | 19.69% | 19.19% | 19.34% | 21.55% | 22.84% | 23% | 22.26% | 22.62% | 23.46% | 23.27% | 23.64% | 24.82% | 27.41% | 25.02% | 23.61% | 23.74% | 22.43% | 23.06% | 23.82% | 21.1% | 22.62% | 23.89% | 28.66% | 28.01% | 26.23% | 25.58% |
| Selling, General & Admin | 3.29B | 3.25B | 2.92B | 2.83B | 2.83B | 2.73B | 2.31B | 2.26B | 2.74B | 2.71B | 2.42B | 2.3B | 2.39B | 2.38B | 2.21B | 2.31B | 1.96B | 1.01B | 1.08B | 1.03B | 938.6M | 722.3M | 678.1M | 637.8M | 547.2M | 593.7M | 656.6M | 703M | 684.7M | 627.7M | 608.5M |
| SG&A % of Revenue | - | 21.51% | 19.02% | 17.93% | 16.71% | 17.89% | 17.65% | 17.47% | 19.58% | 20.89% | 21.21% | 20.57% | 21.08% | 21.89% | 21.78% | 22.22% | 23.25% | 26.92% | 24.45% | 23.04% | 23.36% | 21.99% | 22.62% | 23.82% | 21.1% | 22.62% | 23.89% | 25.55% | 25.09% | 23.51% | 22.78% |
| Research & Development | 0 | 0 | 328.8M | 362M | 357.4M | 276.3M | 200M | 240.8M | 275.8M | 252.3M | 204.4M | 188M | 174.6M | 170.7M | 151.4M | 147.2M | 131.4M | 18.3M | 25.4M | 25.4M | 15.3M | 14.5M | 13.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | 2.14% | 2.29% | 2.11% | 1.81% | 1.53% | 1.86% | 1.97% | 1.95% | 1.79% | 1.68% | 1.54% | 1.57% | 1.49% | 1.42% | 1.56% | 0.49% | 0.57% | 0.57% | 0.38% | 0.44% | 0.44% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 110.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 85.6M | 79.7M | 72.4M | 74.7M |
| Operating Income | 1.19B | 1.15B | 1.35B | 908.8M | 913.7M | 2.07B | 1.95B | 1.77B | 1.89B | 1.87B | 1.67B | 1.53B | 1.55B | 1.39B | 1.37B | 1.4B | 884.2M | 483.9M | 563.8M | 633.8M | 506M | 444.5M | 412.3M | 255M | 288.6M | 329.4M | 340.8M | 234.9M | 251.6M | 258.4M | 266.8M |
| Operating Margin % | 7.79% | 7.62% | 8.78% | 5.76% | 5.39% | 13.54% | 14.93% | 13.71% | 13.48% | 14.44% | 14.6% | 13.68% | 13.71% | 12.8% | 13.46% | 13.48% | 10.51% | 12.95% | 12.74% | 14.14% | 12.59% | 13.53% | 13.76% | 9.52% | 11.13% | 12.55% | 12.4% | 8.54% | 9.22% | 9.68% | 9.99% |
| Operating Income Growth % | - | -14.59% | 48.53% | -0.54% | -55.86% | 6.18% | 10.09% | -6.06% | 0.69% | 12.43% | 8.95% | -1.72% | 11.59% | 1.98% | -2.32% | 58.19% | 82.72% | -14.17% | -11.04% | 25.26% | 13.84% | 7.81% | 61.69% | -11.64% | -12.39% | -3.35% | 45.08% | -6.64% | -2.63% | -3.15% | 9.84% |
| EBITDA | 1.65B | 1.54B | 1.94B | 1.53B | 1.49B | 2.65B | 2.53B | 2.33B | 2.39B | 2.33B | 2.07B | 1.94B | 2B | 1.83B | 1.81B | 1.81B | 1.22B | 832.6M | 746.8M | 796M | 627.2M | 541M | 507.3M | 341.5M | 359.8M | 412.3M | 424.1M | 320.5M | 331.3M | 330.8M | 341.5M |
| EBITDA Margin % | 10.86% | 10.19% | 12.62% | 9.72% | 8.77% | 17.32% | 19.36% | 18.05% | 17.1% | 17.99% | 18.17% | 17.38% | 17.68% | 16.85% | 17.85% | 17.43% | 14.5% | 22.28% | 16.87% | 17.75% | 15.61% | 16.47% | 16.92% | 12.75% | 13.88% | 15.71% | 15.43% | 11.65% | 12.14% | 12.39% | 12.79% |
| EBITDA Growth % | -12.65% | -20.51% | 26.43% | 3.23% | -43.86% | 4.72% | 8.43% | -2.53% | 2.52% | 12.53% | 6.73% | -3.12% | 9.27% | 1.28% | 0.15% | 48.38% | 46.41% | 11.49% | -6.18% | 26.91% | 15.93% | 6.64% | 48.55% | -5.09% | -12.73% | -2.78% | 32.32% | -3.26% | 0.15% | -3.13% | 5.37% |
| D&A (Non-Cash Add-back) | 468.4M | 388.7M | 589.5M | 625.1M | 572.2M | 577.1M | 578.1M | 560.2M | 506.5M | 460.7M | 408M | 414M | 449.8M | 441.3M | 445.3M | 410.1M | 334.8M | 348.7M | 183M | 162.2M | 121.2M | 96.5M | 95M | 86.5M | 71.2M | 82.9M | 83.3M | 85.6M | 79.7M | 72.4M | 74.7M |
| EBIT | 859.3M | 882.7M | 733.6M | 177.6M | 370.6M | 1.77B | 1.43B | 1.36B | 1.28B | 1.74B | 1.4B | 1.33B | 1.28B | 779.1M | 721.5M | 939.4M | 358.2M | 354M | 385.3M | 536.3M | 436.4M | 398.6M | 362.8M | 237.3M | 288.6M | 329.4M | 340.8M | 234.9M | 251.6M | 258.4M | 266.8M |
| Net Interest Income | -315.4M | -316.7M | -319.5M | -372.5M | -283.8M | -175.6M | -205.1M | -230.3M | -209.2M | -182.5M | -171.3M | -165.2M | -163.6M | -147.3M | -133.9M | -113.9M | -101.1M | -60.6M | -82.9M | -80.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 98.9M | 148.1M | 179.1M | 186.9M | 54.7M | 9.8M | 18M | 53.9M | 68.7M | 40.1M | 23.2M | 15.2M | 13.6M | 12.8M | 10.1M | 27M | 9.4M | 9.4M | 9.2M | 5.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 414.3M | 464.8M | 498.6M | 559.4M | 338.5M | 185.4M | 223.1M | 284.3M | 277.9M | 222.6M | 194.5M | 180.4M | 177.2M | 160.4M | 144.2M | 140.3M | 100.6M | 110M | 82M | 85.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -811.1M | -735M | -1.11B | -1.28B | -875.8M | -463.9M | -720.5M | -687.6M | -862.9M | -344.2M | -438.9M | -377.4M | -470.1M | -805.8M | -824.1M | -618.9M | -647.1M | -200.6M | -270.6M | -182.7M | -138.9M | -86.3M | -88.1M | -104.3M | -16.1M | -92.7M | -47.1M | -4.1M | -36.2M | -277M | -92.6M |
| Pretax Income | 375.1M | 417.9M | 241.1M | -375.7M | 37.9M | 1.61B | 1.23B | 1.08B | 1.02B | 1.53B | 1.23B | 1.15B | 1.08B | 587.6M | 542.2M | 779.8M | 237.1M | 283.3M | 293.2M | 451.1M | 367.1M | 358.2M | 324.2M | 133M | 272.5M | 236.7M | 293.7M | 230.8M | 215.4M | -18.6M | 174.2M |
| Pretax Margin % | 2.46% | 2.76% | 1.57% | -2.38% | 0.22% | 10.51% | 9.41% | 8.39% | 7.31% | 11.78% | 10.75% | 10.3% | 9.57% | 5.4% | 5.34% | 7.52% | 2.82% | 7.58% | 6.62% | 10.06% | 9.13% | 10.9% | 10.82% | 4.97% | 10.51% | 9.02% | 10.68% | 8.39% | 7.89% | -0.7% | 6.52% |
| Income Tax | 4M | 16M | -45.2M | -94M | -132.4M | 55.1M | 43M | 126.8M | 416.3M | 300.9M | 261.2M | 248.6M | 227.1M | 68.6M | 78.2M | 88.6M | 38.9M | 54.5M | 72.5M | 114.5M | 76.4M | 86.5M | 87.3M | 36.3M | 87.5M | 78.4M | 99.3M | 80.8M | 77.6M | 23.3M | 77.3M |
| Effective Tax Rate % | 1.07% | 3.83% | -18.75% | 25.02% | -349.34% | 3.43% | 3.5% | 11.71% | 40.73% | 19.69% | 21.3% | 21.6% | 20.93% | 11.67% | 14.42% | 11.36% | 16.41% | 19.24% | 24.73% | 25.38% | 20.81% | 24.15% | 26.93% | 27.29% | 32.11% | 33.12% | 33.81% | 35.01% | 36.03% | -125.27% | 44.37% |
| Net Income | 371.1M | 401.9M | 286.3M | -281.7M | -133.7M | 1.69B | 1.24B | 957.5M | 605.2M | 1.23B | 965.3M | 883.7M | 760.9M | 490.1M | 523.7M | 673.2M | 197.7M | 224M | 306.3M | 336.6M | 290.6M | 269.6M | 236.9M | 107.9M | 185M | 158.3M | 194.4M | 150M | 137.8M | -41.9M | 96.9M |
| Net Margin % | 2.44% | 2.66% | 1.86% | -1.79% | -0.79% | 11.06% | 9.46% | 7.42% | 4.33% | 9.47% | 8.46% | 7.91% | 6.71% | 4.5% | 5.16% | 6.49% | 2.35% | 5.99% | 6.92% | 7.51% | 7.23% | 8.21% | 7.9% | 4.03% | 7.13% | 6.03% | 7.07% | 5.45% | 5.05% | -1.57% | 3.63% |
| Net Income Growth % | 3.89% | 40.38% | 201.63% | -110.7% | -107.91% | 36.83% | 29.03% | 58.21% | -50.69% | 27.14% | 9.23% | 16.14% | 55.25% | -6.42% | -22.21% | 240.52% | -11.74% | -26.87% | -9% | 15.83% | 7.79% | 13.8% | 119.56% | -41.68% | 16.87% | -18.57% | 29.6% | 8.85% | 428.88% | -143.24% | 63.96% |
| Net Income (Continuing) | 371.1M | 401.9M | 286.3M | -281.7M | 170.3M | 1.55B | 1.19B | 956.4M | 605.8M | 1.23B | 964.9M | 902.2M | 857.7M | 519M | 464M | 691.2M | 198.2M | 228.8M | 220.7M | 336.6M | 290.7M | 271.7M | 236.9M | 88M | 185M | 158.3M | 194.4M | 150M | 137.8M | -41.9M | 96.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | -305M | 136.7M | 48.8M | 1.6M | 0 | 0 | 0 | -20.1M | -96.3M | -29.7M | 60.1M | -16.7M | 0 | -2.5M | 87.9M | 0 | -100K | -2.1M | 126.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 2.1M | 1.9M | 6.8M | 5.9M | 3.7M | 2.8M | 22M | 47.6M | 82.8M | 81.3M | 60M | 63.2M | 52.7M | 52.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.44 | 2.65 | 1.95 | -2.07 | 6.76 | 10.16 | 7.46 | 6.11 | 4.26 | 8.04 | 6.51 | 5.79 | 4.76 | 3.09 | 5.30 | 3.97 | 4.12 | 2.20 | 3.92 | 4.00 | 3.46 | 3.16 | 4.36 | 1.27 | 2.10 | 1.81 | 2.22 | 1.67 | 1.53 | -0.47 | 1.09 |
| EPS Growth % | 1.24% | 35.9% | 194.2% | -130.62% | -33.46% | 36.19% | 22.09% | 43.43% | -47.01% | 23.5% | 12.44% | 21.64% | 54.05% | -41.7% | 33.5% | -3.64% | 87.27% | -43.88% | -2% | 15.61% | 9.49% | -27.52% | 243.31% | -39.52% | 16.02% | -18.47% | 32.93% | 9.15% | 425.53% | -143.12% | 62.69% |
| EPS (Basic) | - | 2.65 | 1.96 | -2.07 | 7.13 | 10.55 | 7.86 | 6.44 | 4.33 | 8.19 | 6.61 | 5.96 | 4.87 | 3.16 | 5.41 | 4.06 | 4.20 | 2.23 | 3.97 | 4.09 | 3.54 | 3.23 | 4.47 | 1.28 | 2.14 | 1.85 | 2.22 | 1.67 | 1.54 | -0.47 | 1.09 |
| Diluted Shares Outstanding | 152.39M | 152.14M | 151.3M | 149.75M | 156.55M | 165.02M | 162.43M | 156.38M | 151.64M | 152.45M | 148.21M | 152.71M | 159.74M | 158.78M | 166.7M | 170.1M | 150.17M | 90.01M | 79.87M | 84.05M | 83.67M | 85.32M | 84.15M | 84.96M | 88.1M | 87.46M | 87.57M | 89.82M | 90.07M | 89.15M | 88.9M |
| Basic Shares Outstanding | 151.76M | 151.45M | 150.49M | 149.75M | 148.17M | 158.76M | 154.18M | 148.37M | 148.92M | 149.63M | 146.04M | 148.23M | 156.09M | 155.24M | 163.07M | 165.83M | 147.22M | 88.82M | 78.9M | 82.31M | 81.78M | 83.47M | 82.08M | 84.3M | 86.45M | 85.57M | 87.57M | 89.82M | 89.48M | 89.15M | 88.9M |
| Dividend Payout Ratio | - | 124.56% | 171.57% | - | - | 28.09% | 34.95% | 41.98% | 63.6% | 29.57% | 34.28% | 36.2% | 42.23% | 63.8% | 58.05% | 40.98% | 101.97% | 46.25% | 32.32% | 29.65% | 33.07% | 35.2% | 37.74% | 79.8% | 46.27% | 50.85% | 40.28% | 51.67% | 53.63% | - | 69.76% |
Cyclical demand and margin volatility
According to the provided quarterly income statements, SWK's revenue growth remains largely stagnant, fluctuating between a 5.1% decline and a modest 2.7% increase over the last ten quarters, reflecting the company's heavy reliance on cyclical housing and consumer discretionary spending patterns in the United States.
The lack of consistent top-line expansion suggests that the company is struggling to overcome broader macroeconomic pressures on home renovation and professional tool demand. Investors should monitor whether the recent 2.7% growth in 2026Q1 represents a durable recovery or merely a temporary fluctuation in a challenging retail environment.
As reported in financial statements, SWK's gross margins have struggled to maintain historical levels, recently hovering near 30.1% in 2026Q1, which appears to reflect ongoing challenges with inventory absorption and the high cost of goods sold relative to the company's competitive pricing strategy.
The volatility in gross margins, which dipped as low as 26.5% in 2025Q2, indicates that the company's pricing power may be constrained by intense competition and the need to clear legacy inventory. This margin profile suggests that the firm is currently unable to fully pass through input cost inflation to its retail partners.
Based on the income statement data, SWK's operating income has failed to scale efficiently, with operating margins contracting to 6.0% in 2026Q1, as persistent SG&A expenses continue to absorb a significant portion of the gross profit generated by the Tools & Storage segment.
The inability to achieve meaningful operating leverage suggests that the company's cost-reduction programs have yet to yield the intended structural improvements in profitability. Analysts should investigate whether the current SG&A levels are a result of necessary restructuring costs or an underlying inefficiency in the firm's operational model.
Analysis of the reported figures reveals significant volatility in net income, with EPS swinging from a loss of $2.03 in 2023Q4 to a profit of $1.28 in 2024Q4, largely driven by non-operating items and frequent restructuring charges that complicate the assessment of true earning power.
The inconsistency in bottom-line results, compounded by periodic stock-based compensation expenses, suggests that headline GAAP figures may not accurately reflect the company's underlying operational health. Investors should exercise caution when relying on these metrics to forecast future profitability without adjusting for these recurring, yet often non-cash, charges.
While management emphasizes a turnaround, the income statement data suggests that the company remains vulnerable to margin compression, as evidenced by the 35% decline in EPS in 2026Q1 despite a modest revenue increase, which may indicate that the current recovery path is fundamentally fragile.
Short-term improvements in revenue may be masking deeper issues related to the company's ability to maintain profitability in a high-interest-rate environment. The market's optimism regarding the 'Global Supply Chain Transformation' may be premature if the firm cannot demonstrate a sustained ability to expand margins while managing its significant debt load.
Quick answers to the most common questions about buying SWK stock.
For fiscal year 2025, Stanley Black & Decker, Inc. (SWK) reported total revenue of $15.13B. This represents a 466.5% increase compared to $2.67B in 1996.
Stanley Black & Decker, Inc. (SWK) is profitable, generating $401.9M in net income for the fiscal year ending 2025 with a net profit margin of 2.7%.
Stanley Black & Decker, Inc. (SWK) reported an operating income of $1.15B, resulting in an operating profit margin of 7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Stanley Black & Decker, Inc. (SWK) generated $4.52B in gross profit for the year, representing a gross profit margin of 29.9%. This demonstrates the company's core pricing power and production efficiency.