Stanley Black & Decker (SWK) shares delivered a significant 50.3% return over the twelve months ending October 29, 2026, significantly outperforming the S&P 500's 13.3% gain during the same period. This strong stock performance occurred despite relatively flat revenue growth of approximately $15.2 billion for the four quarters ended July 4, 2026, which was nearly identical to the prior year. The company successfully improved its profitability on a per-dollar-of-sales basis, raising operating profit margins from 6.7% a year earlier to 9.2%. Management has consistently highlighted margin expansion as a key driver, citing a reported gross margin of 33.0% in the quarter ended July 4, 2026, up from 27.0% a year prior. This improvement was bolstered by a one-time benefit of roughly 250 basis points from net tariff refunds, while the underlying adjusted gross margin still rose 620 basis points year-over-year. The company sold its Consolidated Aerospace Manufacturing business to Howmet Aerospace on April 6, 2026, which impacted revenue calculations but did not hinder overall profit growth. Looking forward, management aims to reach an adjusted gross margin of 34% to 35% in the second half of 2026 through productivity gains and a strategic supply chain repositioning. This involves shifting production for its U.S. tools business from China to North America, a move previously announced in April 2025 to mitigate tariff impacts. The company also anticipates further price increases by 2027 due to persistent inflation in battery metals, tungsten, and oil, which could support future margin expansion. The article notes that while the stock climbed on management's plans regarding cost restructuring and supply chain shifts, investors are now watching for continued execution of these strategies. The gross margin reported in the upcoming third-quarter report, expected in November 2026, is identified as a critical metric to monitor for further validation of the company's profitability trajectory.