As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at professional tools and equipment stocks, starting with Fortive (NYSE: FTV).

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 satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.4% since the latest earnings results.

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 $1.07 billion, up 7.7% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates.

The stock is down 4.4% since reporting and currently trades at $59.03.

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

Best Q1: 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 $592.6 million, up 21.8% year on year, outperforming analysts’ expectations by 4.8%. The business had a stunning quarter with a solid beat of analysts’ organic revenue and EBITDA estimates.

Kennametal delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.7% since reporting. It currently trades at $35.76.

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

Weakest Q1: 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 $370.1 million, up 3% year on year, falling short of analysts’ expectations by 0.7%. It was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and EPS in line with analysts’ estimates.

As expected, the stock is down 17.9% since the results and currently trades at $7.21.

Read our full analysis of Hillman’s results here.

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 $745.6 million, up 9.9% year on year. This print surpassed analysts’ expectations by 2.3%. Aside from that, it was a slower quarter as it logged a significant miss of analysts’ adjusted operating income and EPS estimates.

The stock is down 10.9% since reporting and currently trades at $90.46.

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

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 $839.9 million, up 15% year on year. This result beat analysts’ expectations by 8.2%. Overall, it was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

Middleby pulled off the biggest analyst estimates beat among its peers. The stock is flat since reporting and currently trades at $143.29.

Read our full, actionable report on Middleby 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.