Snap-on (NYSE: SNA) slips in mixed quarter as Tools Group weakens

Posted by Linda Flegge on Oct 22nd, 2026

What happened

Snap-on Incorporated (NYSE: SNA) reported third-quarter sales of $1.18 billion and diluted EPS of $4.64 on October 22, 2026. Net sales fell $7.1 million from a year earlier, while operating earnings before financial services were $248.1 million and financial services revenue was $98.6 million.

The company said net earnings were $243.0 million, compared with $265.4 million a year ago. Consolidated operating earnings were $316.4 million, down from $347.4 million, and originations were $270.6 million, down 1.3%.

Key numbers

Metric	Latest	Change	Source
Net sales	$1.18 billion	from $1.19 billion, -$7.1 million	Snap-on third-quarter 2026 results release
Diluted EPS	$4.64	from $5.02, -$0.38	Snap-on third-quarter 2026 results release
Operating earnings before financial services	$248.1 million	from $278.5 million, -$30.4 million	Snap-on third-quarter 2026 results release
Net earnings attributable to Snap-on Incorporated	$243.0 million	from $265.4 million, -$22.4 million	Snap-on third-quarter 2026 results release
Financial services revenue	$98.6 million	from $101.1 million, -$2.5 million	Snap-on third-quarter 2026 results release

Why it matters

Operating earnings before financial services fell 10.9% from $278.5 million, even though gross profit was $603.6 million versus $605.9 million last year.

Operating expenses rose to $355.5 million from $327.4 million, which helped pull earnings lower.

Commercial Industrial Group sales rose to $404.3 million from $367.7 million, while Snap-on Tools Group sales fell to $471.5 million from $506.0 million.

Repair Systems Information Group sales slipped to $454.7 million from $464.8 million.

Commercial Industrial Group operating earnings climbed to $74.7 million from $57.5 million.

The Tools Group earned $84.8 million, down from $109.9 million, and Repair Systems Information Group earnings were $116.1 million versus $141.2 million.

The Tools Group margin slipped to 18.0% from 21.7%.

The comparison is also easier to read against last year's legal-settlement benefit, which lifted operating earnings before financial services by $22.0 million.

Snap-on said the quarter was mixed and principally marked by the accelerated rise in diesel prices, which pushed mobile van franchisees to reduce inventories and hurt the Tools Group.

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What's next

Snap-on's webcast is set for October 22, 2026, at 9 00 a.m. Central Time, when management is scheduled to discuss the quarter.

The company said 2026 capital expenditures should approximate $100 million, with $69.0 million already incurred in the first nine months, and that its full-year effective income tax rate should approximate 22%.

If Tools Group sales and margins stabilize, that would strengthen the case.

Another round of inventory pullback in the mobile van channel would weaken it.