Wrapping up Q3 earnings, we look at the numbers and key takeaways for the professional tools and equipment stocks, including ESAB (NYSE: ESAB) and its peers.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 10 professional tools and equipment stocks we track reported a mixed Q3. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.9% below.

While some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results.

ESAB (NYSE: ESAB)

Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE: ESAB) manufactures and sells welding and cutting equipment for numerous industries.

ESAB reported revenues of $727.8 million, up 8.1% year on year. This print exceeded analysts’ expectations by 4.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ revenue and EBITDA estimates.

“ESAB delivered a strong quarter on robust execution, with growth in our Equipment and Automation portfolio and from recent acquisitions. Our U.S. business returned to mid-single-digit growth as tariff uncertainties abated, and our EMEA and APAC businesses continued to see strong demand from high-growth markets,” said Shyam P. Kambeyanda, ESAB President and CEO.

ESAB scored the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 9.5% since reporting and currently trades at $109.62.

Is now the time to buy ESAB? Access our full analysis of the earnings results here, it’s free.

Best Q3: Kennametal (NYSE: KMT)

Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE: KMT) is a provider of industrial materials and tools for various sectors.

Kennametal reported revenues of $529.5 million, up 9.8% year on year, outperforming analysts’ expectations by 1%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.

Kennametal pulled off the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 9.3% since reporting. It currently trades at $39.08.

Is now the time to buy Kennametal? Access our full analysis of the earnings results here, it’s free.

Slowest Q3: Middleby (NASDAQ: MIDD)

Holding a Guinness World Record for creating the world’s fastest conveyor pizza oven, Middleby (NASDAQ: MIDD) is a food service and equipment manufacturer.

Middleby reported revenues of $866.4 million, up 4.5% year on year, falling short of analysts’ expectations by 11.4%. It was a disappointing quarter as it posted full-year revenue and EBITDA guidance missing analysts’ expectations significantly.

Middleby delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 8.6% since the results and currently trades at $144.22.

Read our full analysis of Middleby’s results here.

Hillman (NASDAQ: HLMN)

Established when Max Hillman purchased a franchise operation, Hillman (NASDAQ: HLMN) designs, manufactures, and sells industrial equipment and systems for various sectors.

Hillman reported revenues of $365.1 million, up 4.5% year on year. This result lagged analysts' expectations by 2%. Overall, it was a slower quarter as it also recorded a miss of analysts’ revenue estimates and full-year revenue guidance missing analysts’ expectations.

Hillman pulled off the highest full-year guidance raise among its peers. The stock is down 11.8% since reporting and currently trades at $8.88.

Read our full, actionable report on Hillman here, it’s free.

Fortive (NYSE: FTV)

Taking its name from the Latin root of "strong", Fortive (NYSE: FTV) manufactures products and develops industrial software for numerous industries.

Fortive reported revenues of $1.12 billion, up 4.6% year on year. This number topped analysts’ expectations by 2.7%. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates and full-year EPS guidance exceeding analysts’ expectations.

The stock is up 11.4% since reporting and currently trades at $60.55.

Read our full, actionable report on Fortive here, it’s free.

Market Update

Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure?

These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.