10-Q · July 23, 2026
Snap-on delivered a solid Q2 sales and EPS increase, with net sales up 4.7% to $1.2351 billion and diluted EPS up 5.1% to $4.96; EPS exceeded the $4.94 consensus estimate by $0.02. Gross margin improved 90 basis points…
Earnings analysis · 10-Q
SNA earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Snap-on's Q3 results were mixed but skewed negative: net sales declined 0.6% to $1,183.7M, diluted EPS fell 7.6% to $4.64, and operating margin declined to 24.7% from 26.9%. Commercial & Industrial delivered strong…
Read full summary
Snap-on's Q3 results were mixed but skewed negative: net sales declined 0.6% to $1,183.7M, diluted EPS fell 7.6% to $4.64, and operating margin declined to 24.7% from 26.9%. Commercial & Industrial delivered strong growth, but Tools and RS&I declined, with organic sales down 2.8% company-wide. Cash generation and liquidity remained strong, and management maintained its outlook for approximately $100.0M of 2026 capital expenditures and a 22.0% effective tax rate.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.64
What stood out
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Commercial & Industrial delivered strong growth
Commercial & Industrial segment sales increased 10.0% year over year to $404.3M, while segment operating earnings rose 29.9% to $74.7M and operating margin improved to 18.5% from 15.6%.
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Gross margin remained resilient
Gross profit was $603.6M and gross margin was 51.0%, up 10 basis points year over year, primarily reflecting Rapid Continuous Improvement initiatives despite higher material costs.
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Operating cash flow strengthened
Operating cash flow increased to $887.9M in the first nine months from $813.6M, a $74.3M improvement. Capital expenditures were $69.0M, versus $62.5M in the prior-year period.
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Balance sheet liquidity remains strong
Cash and cash equivalents increased to $1,670.0M from $1,624.5M at fiscal 2025 year-end. Cash exceeded debt for covenant purposes, producing actual leverage and net-debt-to-EBITDA ratios of negative 0.05 and negative 0.22, respectively.
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Nine-month sales growth remained positive
Nine-month net sales increased 3.3% to $3,626.0M, supported by a 1.2% organic gain, $37.1M of acquisition-related sales and $36.0M of favorable foreign-currency translation.
What to watch
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Organic contraction pressured earnings
Q3 net sales declined 0.6% to $1,183.7M, including a 2.8% organic decline. Diluted EPS fell to $4.64 from $5.02, while operating margin declined to 24.7% from 26.9%.
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Tools Group remained under pressure
Snap-on Tools sales fell 6.8% to $471.5M, with a 7.0% organic decline. Segment operating earnings decreased 22.8% to $84.8M and operating margin fell to 18.0% from 21.7%, reflecting lower U.S. and international sales and higher brand-building costs.
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RS&I faced demand and comparison headwinds
Repair Systems & Information segment sales declined 2.2% to $454.7M, including a 5.5% organic decline, while operating earnings fell 17.8% to $116.1M. The prior-year comparison included a $22.0M legal-settlement benefit, and Q3 activity with OEM dealerships declined by double digits.
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Inventory levels and turns deteriorated
Inventories increased $54.4M to $1,079.6M from fiscal year-end, while inventory turns declined to 2.3 from 2.4. Management attributed the increase primarily to uncertainty in the current trade environment.
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Near-term debt maturity increased
Current maturities of long-term debt increased to $299.8M, with total current debt and notes payable reaching $317.9M from $16.2M at fiscal year-end. Management currently intends to repay the $300.0M of 3.25% notes at maturity on March 1, 2027.
Management's outlook
No full-year revenue or EPS guidance was provided. Management maintained its outlook for 2026 capital expenditures of approximately $100.0M and an effective income tax rate of approximately 22.0%; $69.0M of capital expenditures had been incurred through the first nine months.
Earlier filings 2
10-Q · April 23, 2026
Snap-on reported Q1 FY2026 net sales of $1,207.2 million and diluted EPS of $4.69, both up versus the year-ago quarter. Operating earnings were $318.8 million while operating cash flow strengthened to $368.7 million;…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.