A powered dispensing tool includes a housing, a motor at least partially positioned within the housing, a rack operably coupled to the motor for powered translation, and a transmission selectively operably coupling the motor and the rack. The transmission includes an output shaft rotatable in response to rotation of the motor, and an output member drivably coupled to the rack and supported on the output shaft for relative rotation therewith. The transmission also includes a clutch member coupled for co-rotation with the output shaft and movable along the output shaft between a first position, in which the clutch member is engaged with the output member for transferring torque from the output shaft to the output member, and a second position, in which the clutch member is disengaged from the output member to inhibit torque transfer between the output shaft and the output member.