Snap-on (SNA) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2026 reached $1,207.2 million, up 5.8% year-over-year, driven by organic growth and favorable currency translation.

• Net earnings attributable to shareholders rose to $247.0 million, or $4.69 per diluted share, a 2.7% increase from Q1 2025.

• Operating income before financial services was $250.8 million, representing 20.8% of net sales.

• Management highlighted robust sales in critical industries and improved activity in the U.S. Tools Group despite ongoing macroeconomic headwinds.

• The company continued to invest in technology, proprietary databases, and product innovation to maintain competitive advantages.

Financial highlights

• Gross margin was 50.4%, down 30 basis points year-over-year, mainly due to 40 basis points of unfavorable foreign currency effects.

• Operating margin before financial services was 20.8%, while consolidated operating margin was 24.4%.

• Net earnings were $247 million, or $4.69 per diluted share, compared to $240.5 million, or $4.51 per share, in 2025.

• Cash provided by operating activities was $368.7 million, up 23.5% from the prior year.

• Financial services revenue was $101.1 million, with operating earnings of $68.0 million, both slightly down year-over-year.

Outlook and guidance

• Management expects continued progress leveraging proven capabilities in automotive repair and expansion into adjacent markets and critical industries.

• Capital expenditures for 2026 are expected to approximate $100 million, with $21.2 million incurred in Q1.

• The effective income tax rate for the full year 2026 is anticipated to be in the 22%-23% range.

• Corporate expenses are projected at approximately $28 million per quarter.

• Forward-looking statements highlight risks and uncertainties that may impact actual results.