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

Key Points

• Illinois Tool Works raised its FY 2026 EPS guidance to $11.35–$11.55, compared with prior guidance of $11.10–$11.50, and forecasts revenue of $16.7–$16.8 billion versus the $16.6 billion consensus estimate.
• Analyst sentiment remains cautious: ITW has an average “Reduce” rating, with one Buy, seven Holds and five Sells, and an average price target of $274.
• The company’s quarterly dividend is $1.61 per share, or $6.44 annualized, yielding approximately 2.3% with a 59.8% payout ratio.

Illinois Tool Works (NYSE:ITW - Get Free Report) updated its FY 2026 earnings guidance on Tuesday. The company provided earnings per share guidance of 11.350-11.550 for the period, compared to the consensus earnings per share estimate of 11.340. The company issued revenue guidance of $16.7 billion-$16.8 billion, compared to the consensus revenue estimate of $16.6 billion.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on ITW shares. The Goldman Sachs Group reaffirmed a "sell" rating and set a $254.00 price objective on shares of Illinois Tool Works in a report on Thursday, April 30th. Citigroup restated a "neutral" rating on shares of Illinois Tool Works in a research report on Monday, July 13th. Evercore lowered their price target on shares of Illinois Tool Works from $296.00 to $272.00 in a research note on Monday, May 11th. Weiss Ratings cut shares of Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, May 26th. Finally, Truist Financial upped their target price on shares of Illinois Tool Works from $280.00 to $301.00 and gave the stock a "hold" rating in a research report on Thursday, July 2nd. One research analyst has rated the stock with a Buy rating, seven have given a Hold rating and five have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Reduce" and an average price target of $274.00.

Illinois Tool Works Stock Performance

Shares of NYSE ITW opened at $285.12 on Tuesday. The company has a 50-day simple moving average of $263.11 and a 200-day simple moving average of $267.30. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.19 and a quick ratio of 0.86. The company has a market cap of $82.03 billion, a PE ratio of 26.47, a price-to-earnings-growth ratio of 4.86 and a beta of 1.00. 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 Thursday, April 30th. The industrial products company reported $2.66 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.57 by $0.09. The business had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $4.01 billion. Illinois Tool Works had a net margin of 19.32% and a return on equity of 97.36%. The company's quarterly revenue was up 4.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.38 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. On average, equities analysts anticipate that Illinois Tool Works will post 11.37 earnings per share for the current year.

Illinois Tool Works Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th were given a $1.61 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $6.44 dividend on an annualized basis and a dividend yield of 2.3%. Illinois Tool Works's payout ratio is currently 59.80%.

Insider Buying and Selling

In other Illinois Tool Works news, Director Jennifer F. Scanlon bought 806 shares of Illinois Tool Works stock in a transaction that occurred on Tuesday, June 2nd. The shares were purchased at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the completion of the transaction, the director owned 1,652 shares of the company's stock, valued at $409,679.48. This represents a 95.27% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.83% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of ITW. Motiv8 Investments LLC acquired a new stake in shares of Illinois Tool Works in the fourth quarter worth approximately $27,000. Kemnay Advisory Services Inc. purchased a new position in Illinois Tool Works during the fourth quarter worth approximately $27,000. Sfam LLC purchased a new position in Illinois Tool Works during the fourth quarter worth approximately $31,000. Meeder Asset Management Inc. boosted its holdings in shares of Illinois Tool Works by 215.0% in the 4th quarter. Meeder Asset Management Inc. now owns 126 shares of the industrial products company's stock valued at $31,000 after purchasing an additional 86 shares during the last quarter. Finally, Wealth Watch Advisors INC grew its stake in shares of Illinois Tool Works by 347.2% during the 4th quarter. Wealth Watch Advisors INC now owns 237 shares of the industrial products company's stock valued at $58,000 after buying an additional 184 shares during the period. 79.77% of the stock is currently owned by hedge funds and other institutional investors.

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.

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