Q1 EPS Forecast for Illinois Tool Works Lowered by Analyst

Illinois Tool Works Inc. (NYSE:ITW) – Equities researchers at Zacks Research reduced their Q1 2028 earnings per share (EPS) estimates for shares of Illinois Tool Works in a note issued to investors on Monday, October 12th. Zacks Research analyst Team now expects that the industrial products company will earn $2.99 per share for the quarter, down from their prior estimate of $3.04. The consensus estimate for Illinois Tool Works’ current full-year earnings is $11.42 per share. Zacks Research also issued estimates for Illinois Tool Works’ Q2 2028 earnings at $3.31 EPS, Q3 2028 earnings at $3.52 EPS and FY2028 earnings at $13.33 EPS.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.80 by $0.04. The business had revenue of $4.30 billion during the quarter, compared to analyst estimates of $4.19 billion. Illinois Tool Works had a return on equity of 101.72% and a net margin of 19.39%. The business’s revenue for the quarter was up 6.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.58 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS.

Several other equities analysts also recently issued reports on the stock. UBS Group set a $277.00 price target on shares of Illinois Tool Works in a report on Friday. Robert W. Baird increased their price objective on shares of Illinois Tool Works from $278.00 to $297.00 and gave the stock a “neutral” rating in a report on Wednesday, July 29th. Wolfe Research reaffirmed an “underperform” rating and issued a $286.00 price objective on shares of Illinois Tool Works in a report on Thursday, July 9th. Weiss Ratings downgraded shares of Illinois Tool Works from a “buy (b)” rating to a “buy (b-)” rating in a research report on Tuesday. Finally, Truist Financial reduced their target price on shares of Illinois Tool Works from $308.00 to $297.00 and set a “hold” rating for the company in a research note on Monday, October 5th. One investment analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat, Illinois Tool Works has a consensus rating of “Reduce” and a consensus price target of $273.42.

Illinois Tool Works Price Performance

Shares of NYSE ITW opened at $266.42 on Wednesday. The company has a debt-to-equity ratio of 2.26, a current ratio of 1.11 and a quick ratio of 0.81. The firm has a market capitalization of $75.88 billion, a PE ratio of 24.03, a P/E/G ratio of 2.86 and a beta of 0.96. Illinois Tool Works has a 1-year low of $238.82 and a 1-year high of $303.15. The business’s fifty day moving average price is $275.03 and its two-hundred day moving average price is $268.21.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in ITW. Continuum Advisory LLC acquired a new stake in shares of Illinois Tool Works during the 2nd quarter valued at $29,000. Wilkerson Advisory Group LLC grew its holdings in shares of Illinois Tool Works by 77.6% during the 1st quarter. Wilkerson Advisory Group LLC now owns 119 shares of the industrial products company’s stock valued at $31,000 after acquiring an additional 52 shares in the last quarter. Global Assets Advisory LLC purchased a new position in shares of Illinois Tool Works during the 1st quarter valued at $32,000. Abound Wealth Management increased its stake in shares of Illinois Tool Works by 178.6% in the second quarter. Abound Wealth Management now owns 117 shares of the industrial products company’s stock worth $32,000 after acquiring an additional 75 shares during the last quarter. Finally, Tacita Capital Inc acquired a new position in shares of Illinois Tool Works in the second quarter worth $32,000. Institutional investors and hedge funds own 79.77% of the company’s stock.

Insider Transactions at Illinois Tool Works

In other news, CAO Matteo C. Pigozzo sold 277 shares of Illinois Tool Works stock in a transaction that occurred on Thursday, August 13th. The shares were sold at an average price of $289.22, for a total value of $80,113.94. Following the transaction, the chief accounting officer owned 3,394 shares of the company’s stock, valued at $981,612.68. The trade was a 7.55% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Ernest Santi sold 41,431 shares of the business’s stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $287.09, for a total transaction of $11,894,425.79. Following the completion of the sale, the director owned 266,288 shares in the company, valued at $76,448,621.92. The trade was a 13.46% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.83% of the stock is currently owned by corporate insiders.

Illinois Tool Works Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, October 9th. Shareholders of record on Wednesday, September 30th were given a $1.72 dividend. This represents a $6.88 annualized dividend and a yield of 2.6%. This is a boost from Illinois Tool Works’s previous quarterly dividend of $1.61. The ex-dividend date was Wednesday, September 30th. Illinois Tool Works’s dividend payout ratio (DPR) is presently 62.38%.

Key Illinois Tool Works News

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

• Positive Sentiment: Zacks raised several 2026–2027 estimates. Zacks lifted its FY2026 EPS forecast to $11.42 from $11.40, FY2027 to $12.37 from $12.27, and made small increases to estimates for Q3 2026, Q4 2026, Q1 2027 and Q3–Q4 2027. These revisions suggest modestly improving expectations for ITW’s near-term operating performance.
• Neutral Sentiment: Corporate recognition and innovation discussion provide limited direct stock catalysts. ITW was honored at an Adler Planetarium gala that raised $1.2 million, while a separate article examined whether the company’s innovation initiatives could benefit from an industrial upturn. Neither item included a material financial announcement. Adler Planetarium Gala Pulls In $1.2M as ITW Is Honored
• Negative Sentiment: JPMorgan downgraded ITW to Neutral from Overweight and cut its price target to $277 from $350. The sharply lower target indicates reduced confidence in the stock’s upside and is the clearest negative catalyst in the recent news flow. JPMorgan Downgrades Illinois Tool Works to Neutral From Overweight, Cuts Price Target
• Negative Sentiment: Zacks reduced its 2028 earnings forecasts. Q1 2028 EPS was lowered to $2.99 from $3.04, Q2 to $3.31 from $3.44, Q3 to $3.52 from $3.56, and FY2028 to $13.33 from $13.60. The cuts point to somewhat weaker longer-term growth expectations, although FY2028 EPS remains above the current-year consensus of $11.42.

About Illinois Tool Works

Illinois Tool Works Inc (NYSE: ITW) is a diversified industrial manufacturer that develops and produces engineered products and systems for customers worldwide. The company serves a broad range of end markets, including automotive, construction, food service, welding, electronics, and general industry.

ITW’s product portfolio includes automotive components and fasteners, commercial food equipment, welding equipment and consumables, test and measurement instruments, electronic components, polymers and fluids, construction fastening systems, and other specialized industrial products.