Illinois Tool Works (NYSE:ITW) Releases FY 2026 Earnings Guidance

Illinois Tool Works (NYSE:ITW) updated its FY 2026 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of 11.100-11.500 for the period, compared to the consensus estimate of 11.270. The company issued revenue guidance of $16.4 billion-$16.7 billion, compared to the consensus revenue estimate of $16.6 billion.

Wall Street Analyst Weigh In

A number of research firms have recently commented on ITW. Weiss Ratings reiterated a “buy (b-)” rating on shares of Illinois Tool Works in a report on Monday. JPMorgan Chase & Co. dropped their price objective on Illinois Tool Works from $303.00 to $295.00 and set an “overweight” rating on the stock in a report on Friday. Wolfe Research increased their price objective on Illinois Tool Works from $276.00 to $295.00 and gave the company an “underperform” rating in a report on Friday, February 27th. Wells Fargo & Company dropped their price objective on Illinois Tool Works from $270.00 to $245.00 and set an “underweight” rating on the stock in a report on Wednesday, April 1st. Finally, The Goldman Sachs Group restated a “sell” rating and set a $254.00 price target on shares of Illinois Tool Works in a research note on Thursday. Two research analysts have rated the stock with a Buy rating, six have given a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average target price of $269.46.

Illinois Tool Works Stock Performance

NYSE:ITW traded down $3.15 during mid-day trading on Friday, reaching $254.86. 1,296,727 shares of the stock were exchanged, compared to its average volume of 1,429,345. The company has a 50 day simple moving average of $270.96 and a 200-day simple moving average of $261.65. The stock has a market capitalization of $73.42 billion, a P/E ratio of 24.29, a P/E/G ratio of 4.77 and a beta of 1.13. The company has a quick ratio of 0.89, a current ratio of 1.21 and a debt-to-equity ratio of 2.07. Illinois Tool Works has a 1 year low of $236.68 and a 1 year high of $303.15.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.57 by $0.09. The firm had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. Illinois Tool Works had a return on equity of 95.16% and a net margin of 19.11%.The firm’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same quarter last year, the business posted $2.38 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. Analysts anticipate that Illinois Tool Works will post 11.26 earnings per share for the current fiscal year.

Illinois Tool Works Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, April 9th. Shareholders of record on Tuesday, March 31st were paid a $1.61 dividend. This represents a $6.44 annualized dividend and a dividend yield of 2.5%. The ex-dividend date was Tuesday, March 31st. Illinois Tool Works’s dividend payout ratio (DPR) is 61.39%.

Insider Activity at Illinois Tool Works

In other news, EVP Axel Beck sold 4,223 shares of the firm’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $290.22, for a total value of $1,225,599.06. Following the completion of the sale, the executive vice president directly owned 5,789 shares of the company’s stock, valued at $1,680,083.58. This trade represents a 42.18% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Ernest Scott Santi sold 167,345 shares of the firm’s stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total value of $48,685,680.85. Following the completion of the sale, the director directly owned 258,766 shares of the company’s stock, valued at $75,282,792.38. This represents a 39.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.83% of the company’s stock.

Trending Headlines about Illinois Tool Works

Here are the key news stories impacting Illinois Tool Works this week:

• Positive Sentiment: Q1 beat and margin/cash-flow improvement — ITW reported GAAP EPS of $2.66 (above consensus) on revenue of $4.02B, operating margin expanded ~60 bps and management said cash flow strengthened; the company raised FY2026 GAAP EPS guidance to $11.10–$11.50. ITW Reports First Quarter 2026 Results
• Positive Sentiment: Headline beat reinforced across outlets — multiple analyst summaries and earnings-call transcripts highlight the 12% GAAP EPS growth year-over-year and disciplined execution that expanded margins. Illinois Tool Surpasses Q1 Earnings Estimates, Updates 2026 View
• Neutral Sentiment: Guidance essentially in line with consensus — FY EPS and revenue ranges were reiterated/updated around Street expectations (EPS range centers near consensus, revenue guide roughly $16.4–16.7B vs ~$16.6B estimate), so guidance was not a clear beat. ITW projects $11.10-$11.50 2026 GAAP EPS while maintaining 1%-3% organic growth outlook
• Negative Sentiment: Muted organic growth and uneven segment demand — organic revenue was roughly flat (~0.4%), with several end-market segments (automotive OEM, food equipment, construction products, specialty products) showing declines; FX helped headline growth. Investors often penalize low-quality/FX-driven growth. Illinois Tool Works slides as investors focus on muted organic growth despite Q1 beat and higher EPS outlook
• Negative Sentiment: Market reaction and sentiment pressure — some analysts and investors viewed the modest guidance raise as partly driven by a lower tax-rate assumption (not demand acceleration); the stock also underperformed peers on the day and recent insider selling / mixed analyst ratings add pressure. Illinois Tool Works Inc. stock underperforms Thursday when compared to competitors

Hedge Funds Weigh In On Illinois Tool Works

Several hedge funds and other institutional investors have recently bought and sold shares of the company. State Street Corp raised its holdings in Illinois Tool Works by 1.2% during the fourth quarter. State Street Corp now owns 12,596,511 shares of the industrial products company’s stock worth $3,122,535,000 after purchasing an additional 151,864 shares during the last quarter. Charles Schwab Investment Management Inc. raised its holdings in Illinois Tool Works by 1.0% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 2,685,068 shares of the industrial products company’s stock worth $661,334,000 after purchasing an additional 26,791 shares during the last quarter. Ameriprise Financial Inc. raised its holdings in Illinois Tool Works by 1.1% during the second quarter. Ameriprise Financial Inc. now owns 2,554,468 shares of the industrial products company’s stock worth $631,685,000 after purchasing an additional 28,762 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Illinois Tool Works by 11.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 1,985,000 shares of the industrial products company’s stock worth $488,960,000 after purchasing an additional 207,295 shares during the last quarter. Finally, Schroder Investment Management Group raised its holdings in Illinois Tool Works by 4.7% during the fourth quarter. Schroder Investment Management Group now owns 1,751,393 shares of the industrial products company’s stock worth $436,482,000 after purchasing an additional 79,104 shares during the last quarter. 79.77% of the stock is owned by institutional investors and hedge funds.

Illinois Tool Works Company Profile

Illinois Tool Works Inc (ITW) is a diversified industrial manufacturer that designs and produces a broad array of engineered products, consumables and related service solutions for industrial customers. Its offerings span engineered fastening systems, specialty components, industrial equipment, welding products, foodservice and packaging equipment, adhesives and polymer products, and test-and-measurement technologies. These products are used as critical inputs by customers across automotive, construction, electronics, foodservice, maintenance and other industrial end markets.

The company operates a decentralized business model in which independently managed businesses focus on niche product lines and close customer relationships.