Q3 EPS Forecast for Illinois Tool Works Boosted by Analyst

Key Points

• Zacks Research raised Illinois Tool Works’ Q3 2026 EPS estimate to $2.96 from $2.95, while the company’s full-year 2026 guidance remains $11.35–$11.55 per share.
• ITW’s latest quarter exceeded expectations, reporting $2.84 EPS versus the $2.80 consensus and $4.30 billion in revenue versus the $4.19 billion estimate; revenue increased 6.1% year over year.
• The company increased its quarterly dividend to $1.72 from $1.61, implying an annualized payout of $6.88 and a yield of approximately 2.6%. Despite this, analysts’ average rating is “Reduce,” with a consensus price target of $273.42.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Zacks Research increased their Q3 2026 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 $2.96 per share for the quarter, up from their prior estimate of $2.95. The consensus estimate for Illinois Tool Works' current full-year earnings is $11.44 per share. Zacks Research also issued estimates for Illinois Tool Works' Q4 2026 earnings at $2.96 EPS, FY2026 earnings at $11.42 EPS, Q1 2027 earnings at $2.75 EPS, Q3 2027 earnings at $3.28 EPS, Q4 2027 earnings at $3.30 EPS and FY2027 earnings at $12.37 EPS.

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

ITW has been the topic of a number of other research reports. Robert W. Baird upped their price target on shares of Illinois Tool Works from $278.00 to $297.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. Citigroup restated a "neutral" rating on shares of Illinois Tool Works in a research report on Monday, July 13th. Deutsche Bank Aktiengesellschaft reduced their price objective on Illinois Tool Works from $287.00 to $281.00 and set a "hold" rating for the company in a report on Wednesday, September 30th. Wolfe Research reaffirmed an "underperform" rating and issued a $286.00 target price on shares of Illinois Tool Works in a research report on Thursday, July 9th. Finally, Truist Financial dropped their price target on Illinois Tool Works from $308.00 to $297.00 and set a "hold" rating for the company in a report on Monday, October 5th. One equities research 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. According to MarketBeat, the stock currently has an average rating of "Reduce" and a consensus target price of $273.42.

Illinois Tool Works Stock Performance

NYSE ITW opened at $264.89 on Tuesday. The stock has a market cap of $75.44 billion, a PE ratio of 24.02, a P/E/G ratio of 2.85 and a beta of 0.96. The company has a debt-to-equity ratio of 2.26, a quick ratio of 0.81 and a current ratio of 1.11. The firm has a 50-day moving average of $275.60 and a 200-day moving average of $268.20. Illinois Tool Works has a 52-week low of $238.82 and a 52-week high of $303.15.

Institutional Investors Weigh In On Illinois Tool Works

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

Insider Activity

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

Illinois Tool Works Increases Dividend

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

Illinois Tool Works Company Profile

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.

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