Zacks Research Has Optimistic Opinion of ITW FY2026 Earnings

Key Points

• Zacks Research modestly raised its FY2026 EPS forecast for Illinois Tool Works to $11.46 from $11.39, close to the broader consensus estimate of $11.49.
• ITW’s latest quarter beat EPS expectations, reporting $3.00 versus a $2.97 consensus, while revenue of $4.24 billion fell short of the $4.26 billion estimate. Revenue was up 4.5% year over year.
• Analyst sentiment remains cautious: MarketBeat reports a consensus “Reduce” rating and an average price target of $276.33, despite a mix of recent target changes.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Equities researchers at Zacks Research upped their FY2026 earnings estimates for shares of Illinois Tool Works in a research report issued to clients and investors on Tuesday, November 10th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings per share of $11.46 for the year, up from their prior forecast of $11.39. The consensus estimate for Illinois Tool Works' current full-year earnings is $11.49 per share. Zacks Research also issued estimates for Illinois Tool Works' Q4 2026 earnings at $2.96 EPS and Q2 2027 earnings at $3.04 EPS.

Several other equities research analysts have also recently weighed in on the stock. UBS Group set a $277.00 price objective on shares of Illinois Tool Works in a research report on Friday, October 9th. JPMorgan Chase & Co. cut Illinois Tool Works from an "overweight" rating to a "neutral" rating and cut their target price for the stock from $350.00 to $270.00 in a report on Friday, October 9th. Citigroup cut their price target on Illinois Tool Works from $317.00 to $310.00 and set a "neutral" rating for the company in a research note on Wednesday, October 28th. Deutsche Bank dropped their target price on Illinois Tool Works from $287.00 to $281.00 and set a "hold" rating on the stock in a report on Wednesday, September 30th. Finally, Robert W. Baird lifted their target price on Illinois Tool Works from $278.00 to $297.00 and gave the company a "neutral" rating in a research report on Wednesday, July 29th. One research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and an average price target of $276.33.

Illinois Tool Works Stock Up 0.1%

Shares of NYSE:ITW opened at $288.44 on Thursday. The firm has a market cap of $81.97 billion, a P/E ratio of 25.71, a P/E/G ratio of 3.16 and a beta of 0.92. The business has a fifty day simple moving average of $272.60 and a 200 day simple moving average of $271.83. The company has a quick ratio of 0.94, a current ratio of 1.29 and a debt-to-equity ratio of 2.28. 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 posted its earnings results on Tuesday, October 27th. The industrial products company reported $3.00 EPS for the quarter, topping the consensus estimate of $2.97 by $0.03. Illinois Tool Works had a net margin of 19.39% and a return on equity of 103.35%. The business had revenue of $4.24 billion for the quarter, compared to the consensus estimate of $4.26 billion. During the same period last year, the company earned $2.81 EPS. The firm's revenue was up 4.5% compared to the same quarter last year.

Illinois Tool Works Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, January 15th. Investors of record on Thursday, December 31st will be issued a $1.72 dividend. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $6.88 annualized dividend and a yield of 2.4%. Illinois Tool Works's dividend payout ratio (DPR) is 61.32%.

Insider Buying and Selling at Illinois Tool Works

In other news, Director Ernest Santi sold 60,000 shares of the business's stock in a transaction that occurred on Wednesday, November 4th. The shares were sold at an average price of $292.87, for a total value of $17,572,200.00. Following the sale, the director owned 266,333 shares of the company's stock, valued at $78,000,945.71. The trade was a 18.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.83% of the stock is owned by insiders.

Institutional Trading of Illinois Tool Works

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. BlackRock Inc. bought a new stake in Illinois Tool Works during the 2nd quarter worth approximately $6,296,349,000. Bank of New York Mellon Corp bought a new position in shares of Illinois Tool Works in the second quarter worth approximately $603,166,000. Legal & General Group Plc bought a new position in shares of Illinois Tool Works in the second quarter worth approximately $500,748,000. Deutsche Bank AG purchased a new stake in shares of Illinois Tool Works during the 2nd quarter valued at $221,746,000. Finally, Hsbc Holdings PLC purchased a new stake in Illinois Tool Works during the second quarter valued at about $209,959,000. 79.77% of the stock is currently owned by institutional investors.

Top Illinois Tool Works Stories

Investors following ITW have been watching these stories:

• Positive Sentiment: Zacks raised its FY2026 EPS estimate to $11.46 from $11.39, and its Q4 2026 estimate to $2.96 from $2.93. Its Q2 2027 estimate also edged up to $3.04 from $3.03, providing a modest near-term positive.
• Negative Sentiment: Zacks lowered estimates across several later periods, including FY2027 EPS to $12.21 from $12.33 and FY2028 EPS to $13.08 from $13.20. It also cut forecasts for several 2027–2028 quarters, suggesting a softer outlook for earnings growth farther out.

About Illinois Tool Works

Illinois Tool Works Inc. NYSE: ITW is a diversified manufacturer serving industrial and commercial customers around the world. Founded in 1912, the company is known for its decentralized operating model and focus on specialized products and solutions. ITW's businesses make products and equipment for a range of markets, including automotive, food service, construction, welding, and testing and measurement. Its offerings include food-service equipment, welding systems and consumables, automotive components, construction products, polymers and fluids, and laboratory and electronics testing equipment.

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