third quarter of 2026
Filed Oct 22, 2026Sales of $1,183.7 million and diluted EPS of $4.64 for the third quarter of 2026; Mixed sales results reflect accelerated turbulence, but gross margins hold strong; Activity with critical industries continues to expand
Net sales decreased 0.6%, with organic sales down 2.8%, and diluted EPS declined to $4.64 from $5.02. Commercial & Industrial delivered organic growth and higher operating earnings, but Tools and Repair Systems & Information declined, while prior-year earnings also benefited from a $22.0 million legal settlement.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended October 3, 2026GAAP | $1.18B | – | decrease of $7.1 million, or 0.6% |
| Organic sales change, three months ended October 3, 2026non-GAAP | decrease of $33.1 million | – | 2.8% organic sales decline |
| Gross profit, three months ended October 3, 2026GAAP | $603.6M | – | – |
| Operating expenses, three months ended October 3, 2026GAAP | $355.5M | – | – |
| Operating earnings before financial services, three months ended October 3, 2026GAAP | $248.1 million, or 21.0% of net sales | – | – |
| Financial services revenue, three months ended October 3, 2026GAAP | $98.6M | – | – |
| Operating earnings from financial services, three months ended October 3, 2026GAAP | $68.3M | – | – |
| Operating earnings, three months ended October 3, 2026GAAP | $316.4 million, or 24.7% of revenues | – | – |
| Earnings before income taxes, three months ended October 3, 2026GAAP | $319.3M | – | – |
| Effective income tax rate, third quarter of 2026GAAP | 22.3% | – | – |
| Net earnings attributable to Snap-on Incorporated, three months ended October 3, 2026GAAP | $243M | – | – |
| Diluted net earnings per share attributable to Snap-on Incorporated, three months ended October 3, 2026GAAP | $4.64 per diluted share | – | – |
| Basic net earnings per share attributable to Snap-on Incorporated, three months ended October 3, 2026GAAP | $4.71 per share | – | – |
| Net sales, nine months ended October 3, 2026GAAP | $3.63B | – | – |
| Gross profit, nine months ended October 3, 2026GAAP | $1.85B | – | – |
| Operating expenses, nine months ended October 3, 2026GAAP | $1.08B | – | – |
| Operating earnings before financial services, nine months ended October 3, 2026GAAP | $767.8M | – | – |
| Financial services revenue, nine months ended October 3, 2026GAAP | $299.4M | – | – |
| Operating earnings from financial services, nine months ended October 3, 2026GAAP | $203.8M | – | – |
| Operating earnings, nine months ended October 3, 2026GAAP | $971.6M | – | – |
| Earnings before income taxes, nine months ended October 3, 2026GAAP | $981.7M | – | – |
| Net earnings attributable to Snap-on Incorporated, nine months ended October 3, 2026GAAP | $750.6M | – | – |
| Diluted net earnings per share attributable to Snap-on Incorporated, nine months ended October 3, 2026GAAP | $14.30 per diluted share | – | – |
| Basic net earnings per share attributable to Snap-on Incorporated, nine months ended October 3, 2026GAAP | $14.52 per share | – | – |
| Net cash provided by operating activities, three months ended October 3, 2026GAAP | $247.7M | – | – |
| Capital expenditures, three months ended October 3, 2026GAAP | −$24.7M | – | – |
| Net cash provided by operating activities, nine months ended October 3, 2026GAAP | $887.9M | – | – |
| Capital expenditures, nine months ended October 3, 2026GAAP | −$69M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Commercial & Industrial Group, three months ended October 3, 2026The organic increase includes higher sales in each of the segment’s operations. | $404.3M | – | $27.0 million, or 7.4%, organic gain |
| Snap-on Tools Group, three months ended October 3, 2026The organic decrease is due to lower sales both in the U.S. and in the segment’s international operations. | $471.5M | – | $35.7 million, or 7.0%, organic sales decline |
| Repair Systems & Information Group, three months ended October 3, 2026The organic decrease is primarily due to reduced activity with OEM dealerships. | $454.7M | – | $25.7 million, or 5.5%, organic decline |
| Financial Services, three months ended October 3, 2026Originations of $270.6 million in the third quarter represented a decrease of $3.5 million, or 1.3%, from 2025 levels. | $98.6M | – | – |
| Commercial & Industrial Group, nine months ended October 3, 2026 | $1.18B | – | – |
| Snap-on Tools Group, nine months ended October 3, 2026 | $1.47B | – | – |
| Repair Systems & Information Group, nine months ended October 3, 2026 | $1.42B | – | – |
| Financial Services, nine months ended October 3, 2026 | $299.4M | – | – |
full-year 2026 outlook
- Tax rateapproximate 22%
- NoteCapital expenditures will approximate $100 million
Capital returns
- Cash dividends paid of $(126.1) million in the three months ended October 3, 2026, compared to $(111.5) million
- Purchases of treasury stock of $(87.1) million in the three months ended October 3, 2026, compared to $(82.0) million
- Cash dividends paid of $(379.3) million in the nine months ended October 3, 2026, compared to $(335.5) million
- Purchases of treasury stock of $(278.4) million in the nine months ended October 3, 2026, compared to $(248.2) million
What drove it
- Commercial & Industrial Group sales included a $27.0 million, or 7.4%, organic gain and $10.0 million of acquisition-related sales, partially offset by $0.4 million of unfavorable foreign currency translation.
- Commercial & Industrial Group operating earnings were $74.7 million, compared to $57.5 million, and operating margin was 18.5% compared to 15.6% last year.
- Snap-on Tools Group sales were affected by franchisees reducing inventories in the mobile van channel amid an accelerated rise in diesel prices, despite stable technician-customer demand.
- Repair Systems & Information Group sales included $15.6 million of acquisition-related sales.
- The company stated that critical industries and the precision torque arena led Commercial & Industrial Group gains.
Concerns
- Snap-on Tools Group operating earnings were $84.8 million compared to $109.9 million, while operating margin was 18.0% compared to 21.7% a year ago.
- Repair Systems & Information Group operating earnings were $116.1 million compared to $141.2 million; the 2025 result included a $22.0 million benefit from the legal settlement.
- Consolidated operating earnings were $316.4 million, or 24.7% of revenues, compared to $347.4 million, or 26.9% of revenues.
- The company cited uncertainties in the current environment and unprecedentedly accelerated diesel-price turbulence.
What to watch
- Whether Tools Group franchisee inventory reductions reverse as diesel-price turbulence passes.
- Activity with OEM dealerships following the Repair Systems & Information Group organic decline.
- Commercial & Industrial Group momentum in critical industries and precision torque.
- Full-year 2026 capital expenditures relative to the projected approximate $100 million.
- Full-year 2026 effective income tax rate relative to the anticipated approximate 22%.
Balance sheet and cash flow
- Cash and cash equivalents of $1,670.0 million at October 3, 2026, compared to $1,624.5 million at January 3, 2026
- Notes payable and current maturities of long-term debt of $317.9 million at October 3, 2026, compared to $16.2 million at January 3, 2026
- Long-term debt of $887.2 million at October 3, 2026, compared to $1,186.4 million at January 3, 2026
- Total assets of $8,661.0 million at October 3, 2026, compared to $8,412.3 million at January 3, 2026
- Total liabilities of $2,541.1 million at October 3, 2026, compared to $2,455.5 million at January 3, 2026
- Finance receivables – net of $590.6 million and long-term finance receivables – net of $1,267.3 million at October 3, 2026
- Net cash used by investing activities of $(18.3) million in the three months ended October 3, 2026, compared to $(21.0) million
- Net cash used by financing activities of $(205.3) million in the three months ended October 3, 2026, compared to $(180.9) million
- Net cash used by investing activities of $(242.0) million in the nine months ended October 3, 2026, compared to $(99.0) million
- Net cash used by financing activities of $(602.2) million in the nine months ended October 3, 2026, compared to $(545.4) million
Analysis
Third-quarter results were mixed. Net sales were $1,183.7 million, a decrease of $7.1 million, or 0.6%, while organic sales declined $33.1 million, or 2.8%. Acquisition-related sales of $25.6 million and $0.4 million of favorable foreign currency translation partially offset the organic decline. Net earnings attributable to Snap-on Incorporated were $243.0 million and diluted EPS was $4.64, compared with $265.4 million and $5.02 per diluted share a year ago.
Commercial & Industrial was the clear operating strength. Segment sales reached $404.3 million, including a $27.0 million, or 7.4%, organic gain, and operating earnings rose to $74.7 million from $57.5 million. Its operating margin improved to 18.5% from 15.6%. Management attributed the gain to higher sales in each operation and cited gains in critical industries and precision torque.
The Tools Group and Repair Systems & Information Group drove the sales pressure. Tools sales were $471.5 million, with a $35.7 million, or 7.0%, organic sales decline, and operating earnings fell to $84.8 million from $109.9 million. Management said accelerated diesel-price increases led mobile-van franchisees to reduce inventories despite stable technician-customer demand. Repair Systems & Information sales were $454.7 million, including a $25.7 million, or 5.5%, organic decline primarily related to reduced OEM dealership activity. Its operating earnings were $116.1 million versus $141.2 million, with the prior-year result including a $22.0 million legal-settlement benefit.
Profitability declined versus the prior year but management characterized gross margins as strong. Operating earnings before financial services were $248.1 million, or 21.0% of net sales, compared with $278.5 million, or 23.4% of net sales. Consolidated operating earnings were $316.4 million, or 24.7% of revenues, compared with $347.4 million, or 26.9% of revenues. Financial Services revenue declined to $98.6 million from $101.1 million and operating earnings were $68.3 million versus $68.9 million.
Cash generation remained substantial, with nine-month net cash provided by operating activities of $887.9 million compared with $813.6 million. The company spent $(69.0) million on capital expenditures, $(379.3) million on dividends and $(278.4) million on treasury-stock purchases in the nine-month period. Snap-on projects full-year 2026 capital expenditures of approximately $100 million and anticipates a full-year effective income tax rate of approximately 22%.
Management, verbatim
Our third quarter was mixed with varied outcomes among our business groups.
Nick Pinchuk, Snap-on chairman and chief executive officer
The results were principally marked by the unprecedentedly accelerated rise in diesel prices, which in our mobile van channel prompted franchisees to reduce inventories despite very stable demand from their technician customers, substantially impacting the Tools Group in the period and overcoming what was an encouraging, record-setting performance in the Commercial & Industrial Group, led by gains in the critical industries and the precision torque arena.
Nick Pinchuk, Snap-on chairman and chief executive officer
Not in the filing
stated, not guessed- GAAP gross margin
- Non-GAAP net earnings and non-GAAP EPS
- Free cash flow
- Full-year 2026 revenue guidance
- Full-year 2026 gross margin guidance
- Full-year 2026 operating expenses guidance
- Prior-quarter comparisons for reported metrics
- Prior outlook for comparison with actual results
- Dividend per share
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.