Snap-on Reports Q4 Revenue of $1.23B, Below Expectations
Reports Q4 revenue $1.23B, consensus $1.24B. "We're encouraged by our fourth quarter results, delivering overall sales growth and maintaining solid levels of profitability...all achieved against the extraordinary turbulence of today's environment," said CEO Nick Pinchuk. "During the period, we made meaningful progress in critical industries, including in the power tools and precision-torque arenas, providing customers with repeatability and reliability across essential repair markets...Recent months have seen significant disruptions, including fluctuating tariff levels, a prolonged U.S. government shutdown, and a number of unprecedented international and domestic incidents...conditions that served to raise the intensity of customer uncertainty. In that regard, the quarter demonstrated the special resilience of our markets and reconfirmed the advantages in our product, our brand, and our people that aided in navigating an increasingly difficult landscape. As we move into 2026, we'll enhance the franchise network by fortifying our design efforts, our manufacturing, and our marketing, expand our already prominent position with shop owners and managers by serving the rising complexity of vehicle repair, and extend in critical industries by refining our capabilities to take full advantage of the growing need for customized solutions. At the same time, we'll engage our Snap-on Value Creation Processes, driving improvements across the enterprise that we believe, when combined with our runways for growth, will produce substantial and strategic gains..."
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- Sales Growth: Snap-on's Q4 sales reached $1.2319 billion, up 2.8% year-over-year, demonstrating resilience in a turbulent environment and indicating that ongoing investments in product and brand advantages are yielding results.
- Profitability Improvement: Operating earnings were $339.6 million, a 2.3% increase, with earnings per share at $4.94, up $0.12 from last year, reflecting strong performance in core markets and effective cost control measures.
- Product Innovation: The launch of the Nano-Axcess cordless lineup and ControlTech Plus torque wrench highlights ongoing innovation, as demand for smaller tools and accessories rebounds despite challenges in the tool storage category, indicating a market appetite for new products.
- Market Outlook: Management anticipates capital expenditures of approximately $100 million for 2026, and despite rising material costs and macroeconomic uncertainties, remains optimistic about market resilience, emphasizing that continued investment in products will support future growth.
- Revenue Growth: Snap-on's total revenue for Q4 reached $1.34 billion, surpassing analysts' expectations of $1.23 billion, demonstrating the company's strong performance amid market challenges, particularly with a 1.4% organic sales gain and favorable foreign currency translation.
- Stable Profitability: Operating earnings stood at $339.6 million, or 25.3% of revenue, slightly down from $331.9 million last year, reflecting the company's resilience in maintaining profitability despite a volatile market environment.
- Segment Performance: The Commercial & Industrial Group saw a 2.8% sales increase to $398.1 million, although operating earnings declined due to increased sales in lower-margin businesses; conversely, the Repair Systems & Information Group experienced a 1.0% sales increase to $467.8 million, indicating varied performance across business lines.
- Future Outlook: Snap-on expects an effective income tax rate between 22% and 23% for 2026 and plans to invest approximately $100 million in its franchise network and critical industry expansions, aiming to enhance manufacturing and marketing capabilities to support future growth.
- Revenue Performance: Snap-on Inc. reported Q4 revenue of $1.23 billion, falling short of the $1.24 billion consensus estimate despite a year-over-year increase of 2.8%, indicating increased customer activity in critical industries but disappointing investors, leading to a 1.8% drop in premarket trading.
- Earnings Beat: The company posted earnings of $4.94 per share, exceeding Wall Street's expectation of $4.92, with net income rising from $258.1 million a year ago to $260.7 million, demonstrating stability in profitability even as revenue missed expectations.
- Segment Analysis: The Commercial & Industrial Group saw a 2.8% sales increase driven by demand from critical industries and higher activity in power tools, while Snap-On Tools Group experienced a slight decline due to softer U.S. demand, highlighting market segmentation trends.
- Future Outlook: Snap-on anticipates continued resilience in its markets for 2026, planning capital expenditures of approximately $100 million and expecting an effective tax rate between 22% and 23%, reflecting the company's confidence in future growth.
- Earnings Performance: Snap-On reported a Q4 GAAP EPS of $4.94, beating expectations by $0.02, indicating stable profitability despite a slight decline in overall revenue.
- Revenue Growth Weakness: Revenue increased by 2.5% year-over-year to $1.23 billion, yet fell short of expectations by $10 million, reflecting soft market demand that may impact future sales strategies.
- Organic Sales Slightly Up: The organic sales growth of 1.4% in Q4 suggests that the company maintains some growth momentum in its core business, despite a challenging market environment.
- Future Investment Plans: Snap-On projects capital expenditures to approximate $100 million in 2026, demonstrating confidence in future growth, while anticipating an effective income tax rate between 22% and 23% for 2026, indicating stable tax management.
- Earnings Announcement: Snap-On (SNA) is set to release its Q4 earnings on February 5 before the market opens, with consensus EPS estimated at $4.89 and revenue expected to reach $1.24 billion, reflecting a 3.4% year-over-year growth.
- Performance Analysis: Over the past year, Snap-On has exceeded EPS estimates 75% of the time, while revenue estimates have only been surpassed 25% of the time, indicating a stable earnings performance but challenges in revenue growth.
- Estimate Revisions: In the last three months, Snap-On's EPS estimates saw one upward revision and one downward revision, while revenue estimates experienced one upward revision and two downward revisions, highlighting market uncertainty regarding the company's future performance.
- Market Focus: Snap-On presented at Baird's 55th Annual Global Industrial Conference, where investor interest in its future performance and dividend returns remains high, particularly in the current economic climate.

Market Volatility: Last week saw increased volatility in equities, with the S&P 500 ending slightly up and the Nasdaq Composite slightly down after a steady interest rate announcement by the Federal Open Market Committee.
Microsoft's Earnings Impact: Microsoft experienced a significant drop of 10% in its stock value, resulting in a loss of $357 billion in market capitalization following a disappointing earnings report.
Silver Market Collapse: The silver market faced a dramatic decline, falling 31% in a single day, attributed to the nomination of hawkish Kevin Warsh as the next Fed Chair and a prior 50% increase in value this year.
Overall Economic Sentiment: The combination of these events reflects a turbulent economic sentiment, with investors reacting to both corporate earnings and shifts in monetary policy.






