Stanley Black & Decker reported stronger-than-expected Q1 2026 results last week, beating analyst estimates on both earnings and revenue. The headline numbers are fine. What matters for tool buyers is buried in the guidance language: the company explicitly assumes Section 301 tariffs will return at IEEPA-like levels, and that current lower rates are a “temporary tailwind.” August 2026 is the expected inflection point.
What the Q1 Numbers Show
SBD posted Q1 2026 adjusted EPS of $0.80, well ahead of the $0.59 consensus estimate. Revenue came in at $3.85 billion, up 3% year-over-year — but that growth was entirely driven by pricing. Organic volume was down 3%, offset by a 3% price increase. Translation: the company sold fewer tools and made up the difference by charging more.
That 3% price increase is already live at retail. If you bought DeWalt or Craftsman tools this spring, you paid more than you would have a year ago.
The August Warning
In the Q1 earnings call, management was direct about what they’re planning for: their full-year guidance assumes that Section 301 tariffs will eventually be reintroduced at levels similar to previous IEEPA tariff rates. The lower tariff environment right now — the result of a 90-day US-China trade pause — is explicitly described as a temporary tailwind, not a permanent shift.
Treasury Secretary Bessent has indicated the administration expects tariff levels to normalize by August. SBD has baked that assumption into their model.
What This Means If You’re Buying Tools
DeWalt and Craftsman are the brands most directly exposed — SBD’s supply chain still runs through China for a meaningful portion of its volume, though the company is working to reduce that below 5% by end of 2026. Milwaukee manufactures more of its M18 FUEL lineup domestically (Brookfield, Wisconsin) and in Vietnam, giving it somewhat more insulation.
If you’ve been watching prices and waiting, the current window — between the 90-day pause and the expected August Section 301 reinstatement — is as favorable as tool prices are likely to get this year. Memorial Day weekend deals at Amazon, Home Depot, and Lowe’s are live now and worth acting on before August changes the math.
Our tariff buyer’s guide covers which tool categories are most affected and what to prioritize. For the full background on what SBD has confirmed, see our DeWalt price increase analysis. And if you’re weighing DeWalt versus Milwaukee specifically given the tariff exposure differences, our Milwaukee vs. DeWalt comparison has the platform details that inform that decision.
