SNA US S&P 500Russell 1000 Earnings call · transcribed from the recording
Snap-on (SNA) · Q3 2026 results and valuation
Share price: $374.75 · 2026-11-11
Snap-on designs, manufactures, and markets high-end tools and equipment for the transportation industry, including automotive, marine, and aviation sectors. The company also distributes tools under the Blue-Point brand for professional users in these markets. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 22 Oct 2026 and 23 Jul 2026
Net income down 6.8% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
1 · Numbers
−6.8%
Net income vs Q2 2026
Net income 243.0M vs 260.6M
Revenue −3.9%
Why Against the same quarter last year (−8.4%), net income fell because the prior year's figures included a $16.2 million after-tax benefit from a legal settlement, which is not present in the current period.
2 · How management spoke
Restrained
Less upbeat than 72% of company calls
Answers to analysts: cautious, in line with the script.
Similar to last call.
3 · What stood out
Snap-on's operating margin reached a record 18.5%, an increase of 290 basis points, following a 7.4% organic increase in C &I.
Valuation
Is Snap-on undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2026-01-03), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 2.1% growth a year (3-year revenue growth), the model's fair value is $261.94 a share — the stock trades 43% above it. Today's price assumes 7.1% growth a year.
Current price
$374.75
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+7.1% for 10 yrs
Fair value / share
$261.94
Buy below
$196.45
Price vs fair value
Overvalued 43%
Price vs buy-below price
Overvalued 91%
Read between the lines
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Figure
Sales fell 2.2% to $454.7 million due to a 5.5% organic shortfall caused by lower and lumpy volumes in the OEM segment from fewer new model release programs.
Source quote
“Sales in the quarter were $454.7 million, down 2.2%, including $15.6 million from the recent diesel laptops acquisition, and an organic shortfall of 5.5%, primarily due to the low and lumpy volumes in the OEM segment that derived from fewer new model release programs.”
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Figure
Snap-on Tools Group sales fell to $471.5 million from $506 million last year, reflecting a 7% organic sales decline.
Source quote
“Sales in the Snap-on Tools Group of $471.5 million compared to $506 million last year, reflecting a 7% organic sales decline.”
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Figure
Organic sales were short by 2.8% when adjusted for currency and acquisitions, reflecting mixed results across the corporation.
Source quote
“Adjusting for currency and acquisitions, organic sales were short by 2.8%, with mixed results across the corporation.”
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Figure
Operating income of $74.7 million improved by $17.2 million in Q3 2026 compared to Q2 2026.
Source quote
“Operating income of $74.7 million improved $17.2 million, imp.”
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Figure
The operating margin reached a new record of 18.5%, up 290 basis points, following a 7.4% organic increase in C &I.
Source quote
“C &I above our quarter. Standing resilience. 7.4% organic increase. Operating margin represents a new record of 18.5%, up 290 basis points.”
4 more
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Figure
Consolidated gross margin remained steady at 51% compared to 50.9% in the third quarter last year.
Source quote
“Consolidated gross margin of 51% remained steady and compared to 50.9% in the third quarter last year.”
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Figure
The RS &I group gross margin reached 48.1%, an improvement of 110 basis points from last year due to a favorable business mix.
Source quote
“Gross margin for the RS &I group of 48.1% improved 110 basis points from last year, primarily due to the favorable business mix.”
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Figure
Sales outstanding decreased from 70 days in the second quarter to 68 days in the third quarter, impacting how quickly the company collects payment from customers.
Source quote
“Today's sales outstanding were 68 days at the end of the third quarter and compared sequentially to 70 days at the end of the second quarter and to 67 days at 2025 year end.”
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Figure
The OI margin was 21%, lower by 240 basis points versus last year, though 190 basis points of that decrease were attributed to the legal gate.
Source quote
“The OI margin was 21%, lower by 240 basis points versus last year, but that included 190 basis points from the legal gate.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“It's a robust increase fueled by innovative new product launches and by the gains piling up in the industrial business driven by growing demand for our custom solutions in the...”
“The CNI story again this quarter was a reminder that the of the robust and rising potential in the critical industry sector of our growing power to take advantage of...”
“Now, the gross margin improved 10 basis points to what I consider a very robust 51%, strong despite the environment.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-10-03)
| Metric | Q3 2026period end 2026-10-03 | Q2 2026period end 2026-07-04 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 1.28B | 1.33B | −3.9% | 1.29B | −0.7% |
| Operating income | 316.4M | 336.4M | −5.9% | 347.4M | −8.9% |
| Net income | 243.0M | 260.6M | −6.8% | 265.4M | −8.4% |
| EPS | 4.64 | 4.96 | −6.5% | 5.02 | −7.6% |
| P/E today 19.1 | 19.2 | 21.0 | −1.8 | 17.9 | +1.3 |
Topics
Most discussed now
- The continuing rise in the critical industries, reaching new heights.
- New For instance, in September the team launched the first of its kind are CTR 851 14.4 volt 3 8 inch...
- New The accelerating seemingly limitless rise in diesel during the quarter and the franchisees reducing inventory as a reaction to...
- Opco operating income, or OI, for the quarter was $248.1 million, down from the $278.5 million of last year, which...
- The repair bays are full, but dealerships tend to be heavily influenced by new car sales, and that picture isn't...
Faded since Q2 2026
- Dropped They were already bringing stuff home, so they had the thing established.
- Fading You had recovery in Asia Pacific and SNA Europe, where you got good absorption in that situation.
- Fading Critical industries industrial business
- Fading Snap-on brought that whole line home, and it was able to start sourcing again with more volume in Murphy, which...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Snap-on reported net sales of $1,183.7 million and diluted EPS of $4.64 for the third quarter of 2026, representing a 0.6% decrease in sales from 2025 levels.
- Results of operations · SEC 8-K
Snap-on reported second-quarter net sales of $1,235.1 million, up 4.7% from the previous year, with a diluted EPS of $4.96 compared to $4.72 in 2025.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Snap-on reported net sales of $1,207.2 million in the first quarter of 2026, representing an increase of 5.8% compared to the same period in 2025.
- Results of operations · SEC 8-K
Snap-on reported fourth-quarter net sales of $1,231.9 million, up 2.8% from the previous year, and diluted earnings per share of $4.94 compared to $4.82 a year ago.
- Results of operations · SEC 8-K
Snap-on reported third-quarter net sales of $1,190.8 million, up 3.8% from the previous year, with a diluted EPS of $5.02 compared to $4.70 in the third quarter of 2024.
- Results of operations · SEC 8-K
Snap-on reported net sales of $1,179.4 million and diluted EPS of $4.72 for the second quarter of 2025, compared to $271.2 million in net earnings and $5.07 per diluted share in 2024.
- Shareholder vote results · SEC 8-K · routine