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

Key Points

• FY 2026 guidance: Illinois Tool Works set EPS guidance of $11.10–$11.50 and revenue guidance of $16.4B–$16.7B, roughly in line with consensus (EPS $11.27, revenue $16.6B), and the stock traded down about 3.7% on the update.
• Beat estimates in the latest quarter — ITW reported $2.66 EPS vs. $2.55 expected and $4.02B revenue vs. $4.01B expected, with a 19.11% net margin and revenue up 4.6% year-over-year.
• Dividend and insider/analyst activity: ITW pays a $1.61 quarterly dividend ($6.44 annualized, 2.5% yield), insiders recently sold sizable stakes (director Ernest Santi sold 167,345 shares ~ $48.7M), and analysts’ consensus rating is "Reduce" with a $270 target.

Illinois Tool Works (NYSE:ITW - Get Free Report) issued an update on its FY 2026 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 11.100-11.500 for the period, compared to the consensus estimate of 11.270. The company issued revenue guidance of $16.4 billion-$16.7 billion, compared to the consensus revenue estimate of $16.6 billion.

Illinois Tool Works Trading Down 3.7%

NYSE ITW opened at $255.72 on Thursday. Illinois Tool Works has a one year low of $236.68 and a one year high of $303.15. The company has a 50-day simple moving average of $271.66 and a 200-day simple moving average of $261.68. The company has a debt-to-equity ratio of 2.07, a quick ratio of 0.89 and a current ratio of 1.21. The firm has a market capitalization of $73.67 billion, a PE ratio of 24.23, a price-to-earnings-growth ratio of 4.84 and a beta of 1.13.

Illinois Tool Works (NYSE:ITW - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 EPS for the quarter, beating the consensus estimate of $2.55 by $0.11. The business had revenue of $4.02 billion during the quarter, compared to analyst estimates of $4.01 billion. Illinois Tool Works had a net margin of 19.11% and a return on equity of 95.16%. The company's quarterly revenue was up 4.6% on a year-over-year basis. During the same period in the previous year, the business posted $2.38 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS. On average, equities analysts forecast that Illinois Tool Works will post 11.26 earnings per share for the current year.

Illinois Tool Works Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, April 9th. Investors of record on Tuesday, March 31st were given a $1.61 dividend. The ex-dividend date was Tuesday, March 31st. This represents a $6.44 annualized dividend and a yield of 2.5%. Illinois Tool Works's dividend payout ratio (DPR) is currently 61.39%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on ITW. Wolfe Research lifted their price objective on shares of Illinois Tool Works from $276.00 to $295.00 and gave the company an "underperform" rating in a research report on Friday, February 27th. JPMorgan Chase & Co. cut their price objective on shares of Illinois Tool Works from $327.00 to $303.00 and set an "overweight" rating on the stock in a research report on Friday, April 10th. Barclays dropped their price target on shares of Illinois Tool Works from $275.00 to $250.00 and set an "underweight" rating on the stock in a research report on Wednesday, April 1st. Weiss Ratings restated a "buy (b-)" rating on shares of Illinois Tool Works in a research report on Monday. Finally, The Goldman Sachs Group restated a "sell" rating and set a $253.00 price target on shares of Illinois Tool Works in a research report on Tuesday, February 3rd. Two investment analysts have rated the stock with a Buy rating, seven have issued a Hold rating and five have assigned a Sell rating to the company. According to data from MarketBeat, Illinois Tool Works currently has an average rating of "Reduce" and a consensus target price of $270.00.

Insider Buying and Selling

In related news, Director Ernest Scott Santi sold 167,345 shares of the business's stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $290.93, for a total value of $48,685,680.85. Following the sale, the director directly owned 258,766 shares in the company, valued at $75,282,792.38. The trade was a 39.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Axel Beck sold 4,223 shares of the business's stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $290.22, for a total transaction of $1,225,599.06. Following the completion of the sale, the executive vice president owned 5,789 shares in the company, valued at $1,680,083.58. The trade was a 42.18% 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 owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in ITW. Brighton Jones LLC increased its position in shares of Illinois Tool Works by 5.3% in the fourth quarter. Brighton Jones LLC now owns 5,519 shares of the industrial products company's stock worth $1,399,000 after acquiring an additional 277 shares in the last quarter. Bison Wealth LLC grew its position in Illinois Tool Works by 2.3% during the fourth quarter. Bison Wealth LLC now owns 3,555 shares of the industrial products company's stock valued at $901,000 after purchasing an additional 81 shares in the last quarter. Sivia Capital Partners LLC grew its position in Illinois Tool Works by 20.6% during the second quarter. Sivia Capital Partners LLC now owns 1,038 shares of the industrial products company's stock valued at $257,000 after purchasing an additional 177 shares in the last quarter. Sei Investments Co. grew its position in Illinois Tool Works by 22.0% during the second quarter. Sei Investments Co. now owns 106,784 shares of the industrial products company's stock valued at $26,401,000 after purchasing an additional 19,248 shares in the last quarter. Finally, Treasurer of the State of North Carolina grew its position in Illinois Tool Works by 2.2% during the second quarter. Treasurer of the State of North Carolina now owns 136,884 shares of the industrial products company's stock valued at $33,845,000 after purchasing an additional 2,890 shares in the last quarter. 79.77% of the stock is owned by hedge funds and other institutional investors.

About Illinois Tool Works

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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