Snap-on's Q2 2026 diluted EPS rose 5.1% to $4.96 on 4.7% higher net sales, driven by an 11% organic jump in its industrial segment, while its franchise-van Tools Group and repair-diagnostics segment both earned less than a year ago.
Revenue
$1.3B
+4.2% YoY
Net income
$261M
+4.1% YoY
Diluted EPS
$4.96
+5.1% YoY
Operating margin
25.2%
Snap-on beat last year's second quarter, but not because of its tool vans
Snap-on's second quarter of fiscal 2026 (the 13 weeks ended July 4, 2026) produced net sales of $1,235.1 million, up 4.7%, and diluted earnings per share of $4.96, up 5.1% from $4.72. Nearly all of the extra profit came from one segment. The Commercial & Industrial Group, which sells tools to industrial customers such as aerospace, power generation, military and mining, grew organic sales 11.0% and lifted its operating earnings from $46.9 million to $66.5 million. The two segments that serve vehicle repair both earned less than a year ago. The Snap-on Tools Group, the franchised mobile-van business the company is best known for, grew sales 3.6% but its operating earnings slipped from $116.7 million to $115.1 million. Repair Systems & Information (diagnostics, repair software and shop equipment) grew organically by only 0.7%.
"Organic" sales growth, used throughout this report, is Snap-on's own measure. It strips out sales from businesses bought in the last year and the effect of exchange-rate swings, so it shows how much more the existing business actually sold. Company-wide, organic growth was 3.0% ($35.5 million). Acquisitions added $11.5 million and currency translation added $8.7 million.
Key figures
Metric
Q2 2026
Q2 2025
YoY Change
Total revenues (net sales + financial services revenue)
$1,334.8M
$1,281.1M
+4.2%
Net sales
$1,235.1M
$1,179.4M
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Operating margin (operating earnings / total revenues)
25.2%
25.5%
-30 bps
Operating margin before financial services (on net sales)
21.8%
22.0%
-20 bps
Net earnings attributable to Snap-on
$260.6M
$250.3M
+4.1%
Diluted EPS
$4.96
$4.72
+5.1%
Snap-on Tools Group organic sales growth
+3.0%
n/a
n/a
Financial services originations (new credit extended)
$281.0M
$293.0M
-4.1%
"bps" means basis points: 100 bps equals one percentage point. Operating margin is the share of revenue left after running the business, before interest and tax. Snap-on reports its consolidated operating margin on total revenues, which include the interest and fee income of its financing arm.
Segment by segment
Segment
Q2 2026 net sales
Q2 2025 net sales
Reported change
Organic change
Operating margin Q2 2026
Operating margin Q2 2025
Commercial & Industrial
$395.8M
$347.8M
+13.8%
+11.0%
16.8%
13.5%
Snap-on Tools
$508.8M
$491.0M
+3.6%
+3.0%
22.6%
23.8%
Repair Systems & Information
$480.3M
$468.6M
+2.5%
+0.7%
24.0%
25.6%
Segment sales include sales between segments, so they add up to more than consolidated net sales.
Commercial & Industrial: the growth engine this quarter. The filing says the 11.0% organic rise "reflects increases in each of the segment's businesses, including double-digit gains in the Asia Pacific, European-based hand tools, specialty torque and power tools operations, as well as a mid single-digit rise in activity with customers in critical industries." Segment gross margin rose 260 bps "primarily due to increased sales and savings from the segment's RCI initiatives." RCI ("Rapid Continuous Improvement") is Snap-on's program of factory and sourcing efficiency work. Operating expenses also fell 70 bps as a share of sales because the extra volume spread fixed costs further. The combined result was a margin jump from 13.5% to 16.8%. This segment is also where the April 30 purchase of Hi-Force (a UK maker of high-pressure hydraulic tools and torque equipment, $58.0 million) is reported, and it contributed $6.8 million of acquisition sales in the quarter.
Snap-on Tools Group: sales up, profit down. Mechanics buy from franchisees who drive Snap-on vans to repair shops, so this segment is the best available read on how much professional technicians are willing to spend. Organic sales rose 3.0%, and the filing describes the growth as "low single-digit gains both in the U.S. and in the segment's international operations." Profit did not follow. Gross margin fell 30 bps "primarily reflecting a year-over-year shift in product mix," and operating expenses rose 90 bps as a share of sales "due to increased personnel, freight and other costs." The operating margin fell to 22.6% from 23.8%. Over the first half as a whole, though, the segment's margin was 22.1% against 21.9% a year earlier, so the Q2 dip follows a stronger Q1 rather than extending a downtrend.
Repair Systems & Information: OEM dealers pulled back. Organic growth of 0.7% combined "low single-digit gains in undercar equipment and sales of diagnostic and repair information products to independent repair shop owners and managers" with "a low single-digit decline in activity with OEM dealerships," meaning the service departments of car-brand dealers. Gross margin fell 50 bps on "higher sales of lower gross margin products." Operating expenses rose 110 bps as a share of sales because of "higher personnel and other costs, as well as expanded technology investments." The margin fell from 25.6% to 24.0%. On June 8 Snap-on bought Diesel Laptops, a South Carolina provider of diagnostics and repair information for commercial trucks and off-highway equipment, for $99.7 million. It sits in this segment and contributed $4.7 million of acquisition sales in its first few weeks.
The financing arm is shrinking slightly
Snap-on lends to franchisees and, through them, to the technicians who buy big-ticket items such as diagnostic scanners and tool storage on installment contracts. Financial services revenue fell 2.0% to $99.7 million "primarily due to the lower year-over-year average portfolio," and segment operating earnings slipped to $67.5 million from $68.2 million. The average yield on finance receivables was essentially flat at 17.6% (17.5% a year ago). Originations, the amount of new credit written in the quarter, fell 4.1% to $281.0 million. Expenses dipped by $1.3 million "primarily due to lower provisions for credit losses," so credit quality was not the drag here. The loan book is simply smaller.
This sits awkwardly next to the Tools Group's 3.0% organic growth. Van sales are rising, yet less new credit is being written, which suggests the growth is coming more from smaller, cash-paid items than from the financed big-ticket purchases. That fits the "shift in product mix" the filing gives as the reason for the Tools Group's lower gross margin, although the filing does not draw that link itself.
Takeaway: Snap-on's 5.1% EPS gain came almost entirely from its industrial business, where operating earnings rose $19.6 million, or 42%, on 11.0% organic growth. The two segments tied to vehicle repair, the franchise vans and the diagnostics/equipment group, both grew sales but earned less than a year ago. Credit originations also fell 4.1%, so the auto-technician customer is spending, but cautiously and on cheaper items.
Below the operating line
Corporate costs rose to $27.8 million from $24.3 million, which the filing attributes to "higher stock-based and performance-based compensation costs."
Tax: the effective tax rate on earnings attributable to Snap-on fell to 21.9% from 22.5%, a small boost to EPS.
Share count: diluted shares fell to 52.5 million from 53.0 million. Snap-on repurchased 508,000 shares for $191.3 million in the first half, and on April 30 the board approved a new $500 million buyback authorization, with $485.5 million remaining at quarter-end. The lower share count is why EPS (+5.1%) grew faster than net earnings (+4.1%).
Cash generation: operating cash flow for the first half was $640.2 million, up from $535.7 million, "primarily" reflecting a $73.6 million change in net operating assets and liabilities (working capital) and a $16.2 million increase in net earnings.
Dividend: $2.44 per quarter, up 14.0% from the $2.14 paid a year ago. Snap-on notes it has paid quarterly dividends without interruption or reduction since 1939.
First half of 2026
For the six months, net sales rose 5.2% to $2,442.3 million (3.2% organic, with $35.6 million from favorable currency), net earnings attributable to Snap-on rose 3.4% to $507.6 million, and diluted EPS rose 4.4% to $9.65 from $9.24. The operating margin on total revenues was 24.8% against 25.4%. The filing says 20 bps of that decline came from unfavorable currency effects.
Outlook
Snap-on does not give revenue or EPS guidance. The filing's forward-looking statements are limited to the following:
Capital expenditures for 2026 "will approximate $100 million" ($44.3 million spent in the first half).
The full-year 2026 effective tax rate should "approximate 22%."
A general statement that its markets have "demonstrated continuing and considerable resilience against the uncertainties of the current environment," with growth targeted in adjacent markets and "critical industries."
Our read: The second half depends on whether the industrial strength lasts and whether the van business recovers its margin. The Commercial & Industrial result looks broad-based rather than a one-off, since the filing credits gains in every business in the segment. Its 16.8% margin is still well below the vehicle-repair segments' 22–24%, so each further dollar of industrial growth adds less profit than a dollar of van sales would. The larger watch item is the Tools Group. Three signals point in the same direction: a mix-driven gross-margin decline, a 4.1% drop in originations, and flat-to-down OEM dealer spending in Repair Systems & Information. Together they suggest repair shops and technicians are buying, but avoiding the higher-priced, financed purchases that carry Snap-on's best margins. If Q3 originations stay negative while Tools Group sales keep growing, that would confirm the shift. The two Q2 acquisitions (Hi-Force and Diesel Laptops, about $158 million combined) will add to sales in the second half. Snap-on says their effects "were not significant" to results so far.
Source: Snap-on Incorporated Form 10-Q for the quarter ended July 4, 2026, filed with the SEC on July 23, 2026.