Illinois Tool Works (ITW) reported a strong third quarter with revenue rising 4.4% to $4.236 billion, driven by organic growth in North America and contributions from acquisitions. Operating income hit a quarterly record of $1.177 billion as the company expanded its operating margin to 27.8%,...
Bullish Signals
Revenue grew 4.4% to $4.236B with 3.8% organic growth.
Operating income hit record $1.177B with 27.8% margins.
Raised full-year EPS guidance to $11.45-$11.55.
Free cash flow reached $851M, matching net income.
Increased dividend by 7% for 63rd consecutive year.
Bearish Signals
Tornado damaged facilities, cutting Q3 revenue by $40M.
Illinois Tool Works (ITW) reported a strong third quarter characterized by robust financial performance and an upgraded outlook for the full year. The industrial manufacturer posted third-quarter revenue of $4.236 billion, representing a 4.4% increase year-over-year, with organic growth reaching 3.8%. Operating income hit a...
Illinois Tool Works reported robust third-quarter financial results, with revenue rising 4.4% year-over-year to USD 4.24 billion and organic growth reaching 3.8%. Operating income hit a quarterly record of USD 1.18 billion, driven by a 40 basis point expansion in operating margins to 27.8%. This...
Illinois Tool Works Inc. (NYSE: ITW) reported its first quarter 2026 financial results on April 30, 2026, with total revenue reaching $4.02 billion, representing a 5% overall increase compared to the prior year period. Operating margins expanded by 60 basis points to 25.4%, driven significantly...
Bullish Signals
ITW reported first quarter 2026 revenue of $4.02 billion, representing a strong 5% increase year-over-year.
Operating margins expanded by 60 basis points to 25.4%, driven significantly by 120 basis points of contribution from Enterprise Initiatives.
The company raised its full-year 2026 GAAP EPS guidance by $0.10, updating the range to $11.10-$11.50, which represents an eight% growth trajectory at the mid-point.
First quarter GAAP earnings per share grew 12% to $2.66, while operating income increased seven percent to $1.02 billion.
Free cash flow reached $528 million in Q1, a six percent increase that demonstrates a healthy 69% conversion of net income.
Cash returns to shareholders were robust, with the company completing a share repurchase of $375 million during the quarter.
All seven segments are projected to deliver positive organic growth and operating margin expansion for the full year, with margins expected to reach 26.5%-$27.5%.
Full-year free cash flow is expected to exceed 100% of net income, indicating superior capital efficiency.
The company plans to repurchase approximately $1.5 billion of its own shares over the course of the year, reflecting confidence in valuation.
Specific segments showed resilience with Welding and Test & Measurement delivering organic growth of six% and five%, respectively.
Bearish Signals
Organic revenue growth for the quarter was merely 0.4%, indicating that significant gains in total revenue (5% overall) were driven by foreign currency translation (3.9%) and an acquisition (0.3%) rather than underlying business expansion.
The company relies heavily on 'Enterprise Initiatives' to drive its margins, contributing 120 basis points in the quarter and a projected 100 basis points annually, which introduces dependence on specific cost-cutting or efficiency programs rather than pure volume growth.
Forward-looking guidance includes significant risks related to global supply chain challenges, rising inflation (including raw materials), increasing interest rates, and potential tariff impacts that could materially alter financial performance.
The company notes that estimated free cash flow guidance is based on difficult-to-predict assumptions and that comparable GAAP data for this metric was omitted due to the lack of reliable forward-looking information.
Actual results may differ materially from expectations due to uncertainties regarding future acquisitions, divestitures, end market economic conditions, and regulatory changes detailed in the Form 10-K.
Illinois Tool Works reported a strong third quarter with revenue rising 4.4% year-over-year to $4.236 billion, driven by improved execution and margin expansion. Operating income hit a quarterly record of $1.177 billion, while operating margins widened to 27.8%, up 40 basis points from the prior...
Bullish Signals
Q3 revenue grew 4.4% YoY to $4.236 billion.
Operating income hit record $1.177 billion, up 5.9%.
Operating margin expanded 40 bps to 27.8%.
Raised full-year EPS guidance midpoint by $0.05.
Increased dividend for 63rd consecutive year.
Bearish Signals
Tornado damaged facilities, cutting revenue $40M before insurance.
Illinois Tool Works reported a strong third quarter with revenue rising 4.4% year-over-year to $4.24 billion, driven by accelerated demand in capital-expenditure-related businesses like Welding and Test & Measurement. GAAP earnings per share increased 6.8% to $3.00, while operating income hit a quarterly record of...
Bullish Signals
Raised 2026 EPS guidance midpoint to $11.55.
Record quarterly operating income of $1.18 billion.
Generated $851M free cash flow for buybacks.
Increased 2026 stock repurchase expectation to $1.5B.
Raised dividend 7% with 63-year increase streak.
Bearish Signals
Tornado damaged Welding facilities, cutting Q3 revenue by $40M.
Illinois Tool Works reported strong second-quarter results for fiscal 2026, delivering revenue of USD 4.30 billion against a consensus estimate of USD 4.19 billion. This performance represents a 6.1 percent year-over-year growth rate, exceeding analyst expectations by 2.7 percent. The company also posted quarterly earnings...
Bullish Signals
Q2 revenue hit $4.30B, beating consensus by 2.7% with 6.1% YoY growth.
Illinois Tool Works Inc. (ITW) reported its first quarter 2026 financial results, highlighting strong revenue growth driven by favorable market conditions and strategic initiatives. The company achieved a 5% increase in total revenue, reaching $4.02 billion for the period, while organic revenue grew by 4.6%....
Bullish Signals
ITW raised FY2026 EPS guidance by $0.10 to $11.10-$11.50.
Q1 GAAP EPS rose 12% to $2.66 with operating income up 7%.
Operating margin expanded 60 bps to 25.4%, aided by enterprise initiatives.
Company repurchased $375 million in shares during the quarter.
Free cash flow reached $528M, a 6% increase and strong conversion ratio.
Management projects full-year FCF exceeding net income with $1.5B share buybacks.
All seven segments expected to deliver organic growth and margin expansion in 2026.
FY2026 operating margin projected at 26.5-27.5%, up ~100 bps year-over-year.
Illinois Tool Works (ITW) reported strong third-quarter financial results, with revenue rising 4 percent to $4.24 billion and GAAP earnings per share increasing 7 percent to $3.00. The industrial conglomerate achieved a quarterly record operating margin of 27.8 percent, driven by enterprise initiatives that contributed...
Analyst firm Zacks raised its third-quarter earnings estimate for Illinois Tool Works to USD 2.96 per share, up from USD 2.95, reflecting a modest upward revision in analyst expectations. This adjustment follows the company's strong second-quarter performance where revenue reached USD 4.30 billion, representing a...
Bullish Signals
Zacks raised Q3 estimate to $2.96.
Q2 revenue grew 6.1% YoY to $4.3B.
EPS of $2.84 beat consensus by $0.04.
Maintained full-year 2026 guidance of $11.35-$11.55.
Illinois Tool Works (ITW) announced a quarterly dividend of $1.61 per share on April 9, 2026, marking its 63rd consecutive year of dividend increases and solidifying its status as a Dividend King. The annualized rate stands at $6.44, representing a 7% year-over-year increase from the...
Bullish Signals
63 consecutive years of dividend increases.
$2.707B free cash flow with 1.52x coverage.
Record operating margins: 27.4% in Q3 and 26.5% in Q4.
Beat EPS estimates all four quarters; $10.49 full-year GAAP EPS.
$3.30B returned to shareholders via dividends and buybacks.
Bearish Signals
Construction Products organic growth declined 4% in Q4 2025.
Yield of 2.4% is below 4.29% 10-year Treasury rate.
Mixed sentiment: 10 Hold, 4 Sell/Strong Sell out of 18 analysts.
Stock rose 16.3% last year, compressing historical dividend yield.
Company updateFinancial outlookAI-generated analysis
Illinois Tool Works Inc. (NYSE: ITW) is experiencing accelerated organic revenue growth, rising from 0.4% in the first quarter to 4.5% in the second quarter, driven by recovering equipment investment. The company maintains a premium valuation with a forward P/E of 22x and a trailing...
Bullish Signals
Organic revenue growth accelerated to 4.5% in Q2.
Management raised 2026 EPS midpoint to $11.45.
Operating margin increased 40 bps to 26.7%.
First-half free cash flow rose to $1.16 billion.
Pricing increases exceeded raw-material costs in Q2.
Bearish Signals
Cash conversion hit 73%, missing >100% full-year target.
Debt rose to $9.69B, increasing financing demands.
Econ Financial Services Corp initiated a new position in Illinois Tool Works Inc. (ITW) during the first quarter, purchasing 7,376 shares valued at approximately $1.92 million. This move aligns with several other institutional investors who have recently increased their stakes, including Siemens Fonds Invest GmbH,...
Bullish Signals
Q1 EPS beat at $2.66 vs $2.57 expected.
Revenue hit $4.02B, beating $4.01B forecast.
Full-year 2026 EPS guidance raised to $11.10β$11.50.
Institutional Gradient Investments holdings surged 691.3% in Q4.
Quarterly dividend of $1.61 offers a 2.4% yield.
Bearish Signals
Analysts maintain consensus 'Reduce' rating with $271.92 target.
Wells Fargo lowered stance to 'underweight' at $255 target.
Weiss Ratings downgraded ITW from 'buy' to 'hold'.
Illinois Tool Works (ITW) highlights its Buildex Teks hex washer head self-drilling screws as a flagship product for commercial metal-to-metal construction in North America. Designed to combine drilling, tapping, and fastening into a single operation, these screws eliminate the need for pre-drilling pilot holes, significantly...
Bullish Signals
Eliminates pilot holes, streamlining installation on complex metal structures.
Integrated washers ensure weather-tightness and long-term rust protection.
Simplified procurement improves inventory management across project details.
Strong stickiness creates recurring revenue within ITW's model.
Supports International Building Code compliance with extensive testing data.
Illinois Tool Works (NYSE:ITW) reported Q1 CY2026 results that met Wall Street revenue expectations, with sales rising 4.6% year-over-year to $4.02 billion against analyst estimates of $4.01 billion. GAAP profit per share was $2.66, representing a 3.6% beat versus the consensus of $2.56, while adjusted...
Bullish Signals
Illinois Tool Works met Wall Street's revenue expectations with Q1 sales up 4.6% year-over-year to $4.02 billion.
The company exceeded profit forecasts with GAAP EPS of $2.66 per share, representing a 3.6% beat over analyst estimates.
CEO Christopher O'Herlihy highlighted outperformance against underlying end markets, delivering 5% revenue growth and a 12% increase in GAAP EPS to $2.66.
Management raised confidence in organic growth guidance for the full year, stating they are more confident in the 1% to 3% range than on the previous call.
CapEx-related segments, specifically Test & Measurement and Welding, outperformed internal expectations driven by strong order activity and semiconductor demand.
Enterprise Initiatives, including strategic sourcing and product line simplification, contributed 120 basis points to operating margin to offset softer consumer volumes.
Management anticipates all seven business segments to deliver positive organic growth and margin expansion in 2026.
Patent filings for customer-backed innovation rose further, serving as a leading indicator for future growth contributions expected by 2030.
The company expects modest pricing tailwinds in the second half of the year to help offset inflationary pressures and support overall profitability.
Bearish Signals
Organic revenue growth was flat year-on-year, a miss that contrasts with the reported GAAP profit beat.
Adjusted Operating Income missed estimates by $10 million to hit $1.02 billion, signaling 1.1% negative variance against the consensus of $1.03 billion.
Consumer-facing business segments faced ongoing challenges and subdued organic growth, despite pockets of strength in automotive aftermarket.
Food Equipment performance was weighed down by a slow start in institutional markets, particularly within the education sector.
The stock price dropped 2.9% from $265.67 to $257.70 immediately following earnings release, indicating negative market reaction.
Management admitted lower confidence in organic growth guidance (1-3%) compared to previous calls, citing reliance on current run rates rather than strong demand trends.
Margin expansion of 100 basis points from Enterprise Initiatives is required to counterbalance persistent softness in consumer-facing businesses, suggesting underlying operational drag.
Future performance depends on CapEx-driven momentum persisting and broadening to consumer segments, a key risk if demand weakens in those areas.
Company updateEarnings reportAI-generated analysis
Illinois Tool Works (ITW) reported Q3 2026 results that established a new quarterly operating margin record of approximately 27.8%, driven by strong execution and enterprise initiatives contributing roughly 130 basis points to profitability. While the stock price remained relatively flat with a slight decline, the...
Bullish Signals
Operating margin hit record 27.8%, up 130 bps from initiatives.
GAAP EPS reached US$3.00, a 6.4% year-over-year increase.
Revenue grew 4.4% YoY to US$4,236 million.
Organic growth was 3.8% with innovation exceeding 3% YTD.
Bearish Signals
Cyclical segments faced headwinds with organic revenue contractions.
Consumer-exposed pockets show sensitivity to end-market softness.
Illinois Tool Works (ITW) reported strong second-quarter financial results, with revenue reaching USD 4.30 billion, representing a 6.10% year-over-year increase. The company achieved an adjusted earnings per share of USD 2.84, which exceeded the consensus estimate of USD 2.80. Operating margins expanded to 26.70%, up...
Bullish Signals
Q2 revenue hit USD 4.30B, up 6.10% year-over-year.
Adjusted EPS of USD 2.84 beat consensus estimates.
Operating margins expanded to 26.70%, up 0.40 points.
Raised full-year adjusted EPS guidance to USD 11.35-11.55.
Revenue growth guidance of 4.00%-5.00% signals expansion.
Bearish Signals
Analysts maintain 'Reduce' rating with price target below current levels.
Market believes stock is overvalued despite recent earnings beat.
Bank of New York Mellon Corp reduced its stake in Illinois Tool Works Inc. (NYSE:ITW) by 3.3% during the first quarter, selling 78,534 shares to hold a remaining position valued at approximately $597.6 million. While several smaller institutional investors like Cresta Advisors and Motiv8 Investments...
Bullish Signals
Paid $1.61 quarterly dividend for 2.3% yield.
Director stake increased 95.27% in early June.
Wells Fargo raised price target from $245 to $255.
Bearish Signals
Goldman Sachs 'sell' rating with $254 price target.
Barclays downgraded to 'underweight' with $250 objective.
Weiss Ratings lowered from 'buy (b-)' to 'hold (c+)'.
Consensus 'Reduce' sentiment with average $274 target.
Econ Financial Services Corp increased its stake in Illinois Tool Works Inc. (ITW) by purchasing 7,376 shares valued at approximately $1.92 million during the first quarter, per a recent SEC Form 13F filing. Several other institutional investors have also significantly boosted their holdings recently, including...
Bullish Signals
Q1 revenue hit $4.02B, beating estimates by $10M.
EPS reached $2.66 vs $2.57 consensus expectations.
Revenue grew 4.6% YoY with 19.32% net margin.
Hedge funds Gradient and Vinva increased stakes.
Quarterly dividend of $1.61 offers 2.4% annual yield.
Bearish Signals
Consensus target is $271.92 with 'Reduce' rating.
Wells Fargo cut target to $255 and rated underweight.
Illinois Tool Works (NYSE:ITW) is highlighted as a reliable dividend stock within the diversified industrial manufacturing sector, with operations spanning automotive components, food equipment, welding, and construction products. The company employs approximately 43,000 people and is headquartered in Glenview, Illinois, appealing to investors seeking established...
Bullish Signals
Exceptional Profitability Rating of 9/10 ensures robust dividend safety.
Strong Dividend Rating of 8/10 indicates high quality and sustainability.
Resilient business with acceptable valuation premium for long-term holders.
Bearish Signals
Health Rating of 5/10 suggests balance sheet or liquidity concerns.
P/E ratios of 24.48 and 21.51 exceed industry median.
We use cookies to run the site and, only if you allow it, for live chat, analytics, personalization and ad measurement.
We use cookies to:
Deliver and maintain our services, protect against spam, fraud and abuse
Offer a live chat with our team (Enuchat, optional)
Measure audience engagement and site statistics to understand how our services are used (Google Analytics, optional)
Remember your quiz progress and tailor the knowledge base to your skill level (optional)
Measure how our ads on Facebook and Instagram perform, including whether a visit leads to a confirmed sign-up, matched to your Facebook or Instagram account using hashed contact details you enter (Meta Pixel, optional)
Optional cookies are only set if you allow them. You can accept all, reject all or choose per category, and change your choice at any time via the "Manage Cookies" link in the footer. Google and Meta may process this data in the USA. More in our Privacy Policy.
Manage cookie preferences
Necessary cookiesAlways active
Required for the website to function. These cannot be disabled.
Cookie
Purpose
Duration
PHPSESSID
Session identifier for login, security tokens, and site functionality
Session
cookie_consent
Stores your cookie preferences
1 year
Functional cookies
Show the live chat button so you can message our team. The Enuchat chat widget stores a visitor ID in your browser and sends your chat messages to Enuchat. When this is off, the chat is not loaded.
Cookie
Purpose
Duration
enuchat_visitor_id
Keeps your chat conversation linked to this browser (Enuchat, browser storage)
Until you clear it or turn this off
Analytics cookies
Help us understand how visitors use our website with Google Analytics, provided by Google LLC. Google receives pages visited, device data and an IP address, and may process them in the USA. If you also allow marketing cookies, the Google tag can detect contact details you enter or see on our pages, such as your email address, phone number, name or address, hash them before sending and pass them to Google so it can match your visits to a Google account for measuring our ads. Hashed details are still personal data. See how Google uses information from sites that use its services.
Cookie
Purpose
Duration
_ga
Distinguishes unique visitors (Google Analytics)
2 years
_ga_*
Maintains session state (Google Analytics)
2 years
Personalization cookies
Remember your quiz progress and work out your investing level so we can recommend knowledge-base articles and the right reading depth for you. Stored only on your device.
Cookie
Purpose
Duration
bes_user_level
Your quiz-derived investing level, used to tailor content
1 year
Marketing cookies
Let Meta (Facebook and Instagram) measure how our ads perform, using the Meta Pixel. Meta Platforms Ireland Ltd. receives the pages you visit and, when you confirm the email address of a new account, a "completed registration" event, together with browser identifiers and your IP address. Meta's automatic advanced matching also reads contact details you type into forms on our site, such as your email address or name, hashes them in your browser and sends them with these events so Meta can match them to a Facebook or Instagram account. Hashed details are still personal data. These events are sent from your browser and may also be forwarded to Meta through Meta's Conversions API Gateway. Our own server also sends page visits and completed-registration events directly to Meta's Conversions API, with your IP address, browser user agent and Meta browser identifiers, so Meta can count it once. To help Meta match these visits, your browser and our server also send a random visitor ID from our own cookie and, if you are signed in, your account ID, your confirmed email address and the name, city, postal code and country saved in your profile, all hashed first. We and Meta are joint controllers for collecting and sending this data, and Meta's further use, which may include processing in the USA, is described in the Meta Privacy Policy. When this is off, the Meta Pixel is not loaded and no page visit or registration event is sent to Meta. Together with analytics cookies, this choice also lets Google receive hashed contact details, as described under Analytics cookies.
Cookie
Purpose
Duration
_fbp
Identifies browsers for Meta ad measurement (Meta Pixel)
3 months
_fbc
Stores the Meta ad click that brought you here (Meta Pixel)
3 months
_bes_meid
Random visitor ID, sent to Meta only hashed, so your visits can be matched (Meta Pixel and Conversions API)