Abstract
Snap-on will report its quarter ending December 2025 results on February 05, 2026 Pre-Market; this preview consolidates market forecasts, last quarter performance, segment dynamics, and institutional views over October 21, 2025 to January 29, 2026.
Market Forecast
Consensus projections for the current quarter point to Snap-on delivering revenue of $1.23 billion, EBIT of $333.74 million, adjusted EPS of $4.92, and estimated year-over-year growth of 2.91% in revenue, 0.37% contraction in EBIT, and 2.33% growth in EPS. The company’s margin outlook implies stable conversion from gross margin to net income, with analysts watching mix and pricing to preserve profitability on a year-over-year basis. The main business is expected to remain resilient on demand from professional technicians and industrial customers, supported by stable tool truck sales and continued pricing discipline. The most promising segment is the Management Tools Group with revenue of $506.00 million and ongoing positive technician franchise activity year-over-year.
Last Quarter Review
Snap-on’s previous quarter delivered revenue of $1.19 billion, a gross profit margin of 52.24%, GAAP net profit attributable to the parent company of $265.00 million, a net profit margin of 20.54%, and adjusted EPS of $5.02, with year-over-year revenue growth of 3.82% and adjusted EPS growth of 6.81%. A notable highlight was the sequential improvement in net profit, with quarter-on-quarter growth of 6.03%, reflecting consistent pricing benefits and cost control across divisions. Main business performance showed Management Tools Group revenue at $506.00 million, Repair Systems & Information revenue at $464.80 million, and Commercial & Industrial revenue at $367.70 million, while intersegment eliminations were $147.70 million.
Current Quarter Outlook
Core Tools and Technician Demand
The core tools franchise network remains central to Snap-on’s quarter, with technician demand supported by stable vehicle maintenance activity and continued investment in productivity tools. Pricing measures implemented through the prior year are likely to sustain revenue growth, even as unit volumes trend unevenly across regions. Franchise health indicators, such as collections and write-offs, are expected to remain disciplined, reinforcing cash conversion and supporting margins near recent levels. The company’s focus on new product innovation, including specialized hand tools and power solutions for advanced vehicle platforms, should add incremental contribution, though supply chain timing may influence shipment phasing within the quarter. Currency effects are modest in the current outlook, suggesting limited headwinds to reported sales and earnings compared to earlier periods.
Repair Systems & Information Momentum
Repair Systems & Information, which encompasses diagnostics and shop management solutions, is positioned to contribute positively this quarter as workshops invest in technology to handle complex drivetrains and connected vehicles. Subscription and licensing models help stabilize revenue, and incremental customer adoption in both independent garages and dealership service departments supports mid-single-digit growth. Integration of hardware with software workflows can lift mix quality, aiding gross margin retention and potentially offsetting mild pressure in EBIT from operating investments. Product refresh cycles in diagnostics are expected to align with customer maintenance schedules, with promotional activity managed to guard profitability. If service bays remain near full utilization, cross-sell of information solutions alongside tool sales could provide a modest upside to expectations.
Commercial & Industrial Order Patterns
Commercial & Industrial demand should remain steady, reflecting ongoing purchases from critical industries such as aerospace, energy, and heavy equipment maintenance. Order cadence is consistent with a normal seasonal pattern exiting the year, and backlog levels are adequate to underpin revenue visibility into the quarter. Product mix that favors higher-value specialty tools may support gross margin, while operating leverage from prior footprint optimization helps defend EBIT despite incremental wage and logistics costs. The segment’s exposure to large enterprise accounts introduces timing variability; however, management’s disciplined pricing approach mitigates volatility in contribution margins. International markets continue to recover at a measured pace, and risk associated with project deferrals appears contained within the quarter.
Factors Most Impacting the Stock Price
Investors will likely focus on the relationship between pricing and volumes in the franchise tools network, as it determines whether the modest forecasted EPS growth of 2.33% translates into sustained free cash flow momentum. Margin commentary around gross-to-EBIT conversion will be pivotal, given the slight forecast contraction in EBIT despite expected revenue expansion. Segment mix will matter: stronger contributions from Repair Systems & Information could provide a cushion for consolidated margins, whereas softness in Commercial & Industrial orders might cap upside. Guidance language for calendar 2026 technician franchise investments and diagnostics subscriptions will frame expectations for revenue durability, and any sign of elevated credit costs in the franchise system could weigh on sentiment. Execution on product launches, together with clarity on promotional intensity in the tool trucks, will influence how the market extrapolates growth into subsequent quarters.
Analyst Opinions
Recent institutional views are mixed, with one buy-leaning perspective and one sell-leaning perspective over October 21, 2025 to January 29, 2026, resulting in no clear majority. Barrington Research maintains a positive stance with a $350.00 target, highlighting stable market position and growth prospects in core franchises and diagnostics. Bank of America Securities reiterates a sell view, citing valuation concerns and potential pressure in operating margins relative to top-line momentum. In the context of the current quarter, the constructive view emphasizes consistent revenue execution around $1.23 billion and a balanced margin framework supported by pricing and product mix. The cautious view centers on the slight EBIT contraction forecast of 0.37%, questioning the sustainability of EPS growth without stronger volume recovery. Given the offsetting positions, investors may focus on Snap-on’s commentary on order trends and franchise health metrics to assess which narrative gains traction after February 05, 2026.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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