Snap-On posts rise in quarterly profit, signals demand for data center products (updated)

Snap-On

23/04/2026 18:21

Recasts paragraph 1, adds details from the earnings call in paragraph 2, share movement in paragraph 3, analyst comment in paragraph 10

By Parth  Chandna

April 23 (Reuters) - Industrial toolmaker Snap-On SNA.N reported higher first-quarter profit and revenue on Thursday, underscoring strong uptake of its tools and services, while it gears up for demand from artificial intelligence data centers.

"We're seeing increased demand for specific products for the data center market, and the construction of the data center," Snap-On's CEO Nicholas Pinchuk said during the earnings call.

Shares of the company were up 2% in afternoon trading.

Snap-On's commercial and industrial segment, which serves high-stakes sectors such as aviation, defense, power generation, that require precision, torque, and customized solutions, saw strong growth.

Revenue from this unit rose to $381 million from $343.9 million a year ago, supported by higher sales in each of the segment's operations, led by critical industries and the specialty torque business.

The company sees strong demand for its tools and services in the aviation sector, driven by robust demand for fuel-efficient aircraft amid delayed plane deliveries for customers, Boeing BA.N and Airbus AIR.PA.

However, Snap-On said it faces significant headwinds from widespread uncertainty among its U.S. technician customer base, international supply chain disruptions and global conflicts.

The company also said it aims to expand its professional customer base, not only in automotive repair, but in adjacent markets and additional geographies, including extending in critical industries, where the cost and penalties for failure are high.

For this, it projects capital expenditure of about $100 million in 2026.

"While many companies are delaying transformational investments, they are likely opting for lower-cost precision tooling investments, such as customized tools, instead of multi‑million dollar facility upgrades, allowing deferred capital expenditure to flow into increased commercial and industrial tool spending," said Northcoast Research analyst Aaron Reed.

Snap-On's profit rose to $4.69 per share in the first quarter, up from $4.51 per share a year ago. Analysts, on average, expected an adjusted profit of $4.75 per share.

The toolmaker's first-quarter revenue rose to $1.21 billion, compared with $1.14 billion a year earlier.

 (Reporting by Parth Chandna; Editing by Diti Pujara)

 ((Parth.Chandna@thomsonreuters.com;))