Zacks Research Has Bullish Forecast for ITW Q2 Earnings

Key Points

• Zacks Research raised its Q2 2028 EPS forecast for Illinois Tool Works to $3.44, up from $3.40, and projects FY2028 earnings of $13.60 per share.
• ITW’s latest quarter exceeded expectations, with $2.84 EPS versus the $2.80 consensus and revenue of $4.30 billion, up 6.1% year over year. The company maintained FY2026 guidance of $11.35–$11.55 EPS.
• Illinois Tool Works increased its quarterly dividend to $1.72 per share from $1.61, implying an annualized dividend of $6.88 and a 2.6% yield; however, analysts’ average rating remains “Reduce,” with a $281.25 average price target.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Equities research analysts at Zacks Research boosted their Q2 2028 earnings estimates for Illinois Tool Works in a note issued to investors on Wednesday, September 9th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $3.44 per share for the quarter, up from their prior forecast of $3.40. The consensus estimate for Illinois Tool Works' current full-year earnings is $11.45 per share. Zacks Research also issued estimates for Illinois Tool Works' FY2028 earnings at $13.60 EPS.

A number of other analysts also recently issued reports on ITW. Weiss Ratings raised Illinois Tool Works from a "hold (c+)" rating to a "buy (b-)" rating in a report on Tuesday, August 11th. Citigroup restated a "neutral" rating on shares of Illinois Tool Works in a research note on Monday, July 13th. UBS Group reiterated a "neutral" rating and issued a $300.00 price target on shares of Illinois Tool Works in a research note on Wednesday, July 29th. JPMorgan Chase & Co. boosted their price objective on shares of Illinois Tool Works from $310.00 to $350.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 29th. Finally, Truist Financial increased their target price on shares of Illinois Tool Works from $280.00 to $301.00 and gave the company a "hold" rating in a research report on Thursday, July 2nd. Two equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $281.25.

Illinois Tool Works Stock Performance

Shares of ITW stock opened at $264.20 on Thursday. The company has a market cap of $75.24 billion, a P/E ratio of 23.95, a PEG ratio of 3.64 and a beta of 0.98. The firm has a fifty day moving average price of $280.31 and a 200 day moving average price of $269.84. The company has a current ratio of 1.11, a quick ratio of 0.81 and a debt-to-equity ratio of 2.26. Illinois Tool Works has a 12 month low of $238.82 and a 12 month high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its quarterly earnings data on Tuesday, July 28th. The industrial products company reported $2.84 EPS for the quarter, beating analysts' consensus estimates of $2.80 by $0.04. The company had revenue of $4.30 billion for the quarter, compared to the consensus estimate 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 quarterly revenue was up 6.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.58 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.350-11.550 EPS.

Institutional Trading of Illinois Tool Works

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Meridian Wealth Management LLC boosted its position in Illinois Tool Works by 1.3% during the fourth quarter. Meridian Wealth Management LLC now owns 2,818 shares of the industrial products company's stock worth $694,000 after acquiring an additional 37 shares during the last quarter. Winnow Wealth LLC raised its position in shares of Illinois Tool Works by 1.0% in the 4th quarter. Winnow Wealth LLC now owns 3,809 shares of the industrial products company's stock worth $941,000 after buying an additional 37 shares during the period. Crown Wealth Group LLC grew its position in Illinois Tool Works by 4.0% during the first quarter. Crown Wealth Group LLC now owns 953 shares of the industrial products company's stock valued at $248,000 after acquiring an additional 37 shares during the period. Planning Alternatives Ltd. ADV raised its holdings in shares of Illinois Tool Works by 2.6% in the 4th quarter. Planning Alternatives Ltd. ADV now owns 1,558 shares of the industrial products company's stock worth $384,000 after purchasing an additional 39 shares during the period. Finally, Argos Wealth Advisors LLC raised its holdings in Illinois Tool Works by 2.6% in the first quarter. Argos Wealth Advisors LLC now owns 1,526 shares of the industrial products company's stock valued at $397,000 after buying an additional 39 shares during the period. Hedge funds and other institutional investors own 79.77% of the company's stock.

Insider Buying and Selling

In other Illinois Tool Works news, CAO Matteo Pigozzo sold 277 shares of the stock in a transaction on Thursday, August 13th. The stock was sold at an average price of $289.22, for a total value of $80,113.94. Following the completion of the transaction, the chief accounting officer owned 3,394 shares in the company, valued at approximately $981,612.68. This represents a 7.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Ernest Santi sold 41,431 shares of the business's stock in a transaction 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 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. 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 announced a quarterly dividend, which will be paid on Friday, October 9th. Stockholders of record on Wednesday, September 30th will be paid a dividend of $1.72 per share. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.61. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $6.88 dividend on an annualized basis and a dividend yield of 2.6%. Illinois Tool Works's dividend payout ratio (DPR) is currently 58.39%.

About Illinois Tool Works

Illinois Tool Works Inc NYSE: ITW is a diversified industrial manufacturer that develops and produces specialized equipment, components, consumables and related solutions for businesses worldwide. Its products are used across industries including automotive, food service, construction, electronics, welding and general manufacturing.

The company operates through several business segments, including Automotive, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products.

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