Snap-on (SNA) Q3 2026 earnings summary

Executive summary

• Q3 sales were $1,183.7M, down 0.6% YoY; organic sales fell 2.8%, partly offset by $25.6M in acquisition sales and $0.4M favorable FX.

• Diluted EPS was $4.64 versus $5.02; prior-year results included a $0.31-per-share after-tax legal-settlement benefit.

• Results reflected diesel-driven franchisee inventory reductions and lower OEM activity, partly offset by critical-industry growth.

• Nine-month sales rose 3.3% to $3,626.0M, including 1.2% organic growth; operating cash flow increased to $887.9M from $813.6M.

Financial highlights

• Q3 gross profit was $603.6M; gross margin improved 10 bps to 51.0%, with RCI benefits partly offset by higher material costs.

• Consolidated operating earnings were $316.4M versus $347.4M; operating earnings before financial services were $248.1M, or 21.0% of sales, versus $278.5M and 23.4%.

• Net earnings attributable were $243.0M, or $4.64 per diluted share; total net earnings were $247.7M. Prior-year attributable earnings were $265.4M and included a $16.2M after-tax settlement benefit.

• Operating expenses were $355.5M, or 30.0% of sales, versus $327.4M, or 27.5%; prior year included a 190-bps settlement benefit, and brand-building and other costs increased.

• Nine-month gross profit rose 3.8% to $1,847.1M, with a 50.9% margin; diluted EPS was $14.30 versus $14.24.

Outlook and guidance

• FY 2026 capital expenditures are projected at ~$100M, with $69.0M incurred in the first nine months; the full-year effective tax rate is expected to be ~22%.

• Strategic priorities include growth in automotive repair, adjacent markets, additional geographies and critical industries, supported by customer-focused capabilities and customized solutions.

• Management expects some improvement in OEM program activity but described a flatter period ahead, with launch timing and program decisions uncertain.

• Tools is positioned to advance with quick-payback products as current turbulence passes; proprietary databases are streamlining independent repair-shop work.