Zacks Research Issues Pessimistic Outlook for ITW Earnings

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Stock analysts at Zacks Research reduced their Q3 2025 earnings per share (EPS) estimates for shares of Illinois Tool Works in a report issued on Wednesday, May 14th. Zacks Research analyst A. Bhattacharjee now forecasts that the industrial products company will post earnings per share of $2.63 for the quarter, down from their prior forecast of $2.72. The consensus estimate for Illinois Tool Works' current full-year earnings is $10.39 per share. Zacks Research also issued estimates for Illinois Tool Works' Q2 2026 earnings at $2.77 EPS, Q3 2026 earnings at $2.84 EPS and FY2026 earnings at $10.97 EPS.

Other equities research analysts also recently issued research reports about the stock. Wells Fargo & Company cut their target price on shares of Illinois Tool Works from $250.00 to $245.00 and set an "underweight" rating for the company in a research report on Thursday, February 6th. JPMorgan Chase & Co. reduced their price objective on shares of Illinois Tool Works from $300.00 to $295.00 and set an "overweight" rating for the company in a research note on Monday, February 3rd. Barclays lowered their price target on Illinois Tool Works from $240.00 to $237.00 and set an "equal weight" rating on the stock in a report on Thursday, May 1st. StockNews.com lowered Illinois Tool Works from a "buy" rating to a "hold" rating in a research note on Thursday, February 6th. Finally, UBS Group reduced their price target on shares of Illinois Tool Works from $269.00 to $234.00 and set a "neutral" rating on the stock in a research note on Monday, April 7th. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating, two have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $253.42.

Illinois Tool Works Stock Performance

NYSE ITW traded down $5.21 during trading hours on Monday, hitting $244.73. The company's stock had a trading volume of 772,892 shares, compared to its average volume of 1,021,194. The company's 50 day simple moving average is $241.76 and its two-hundred day simple moving average is $255.42. Illinois Tool Works has a 12 month low of $214.66 and a 12 month high of $279.13. The company has a market cap of $71.71 billion, a P/E ratio of 20.88, a price-to-earnings-growth ratio of 4.56 and a beta of 1.12. The company has a debt-to-equity ratio of 1.90, a current ratio of 1.36 and a quick ratio of 0.99.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its earnings results on Wednesday, April 30th. The industrial products company reported $2.38 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.34 by $0.04. Illinois Tool Works had a net margin of 21.94% and a return on equity of 95.39%. The firm had revenue of $3.84 billion for the quarter, compared to the consensus estimate of $3.83 billion. During the same quarter in the prior year, the firm posted $2.44 earnings per share. The business's revenue was down 3.4% on a year-over-year basis.

Hedge Funds Weigh In On Illinois Tool Works

Several hedge funds have recently modified their holdings of ITW. Prudent Man Investment Management Inc. purchased a new stake in Illinois Tool Works during the 4th quarter worth approximately $25,000. Ameriflex Group Inc. purchased a new stake in shares of Illinois Tool Works during the fourth quarter valued at $26,000. Redwood Park Advisors LLC acquired a new position in shares of Illinois Tool Works in the 4th quarter valued at $26,000. von Borstel & Associates Inc. acquired a new stake in Illinois Tool Works during the 1st quarter worth about $26,000. Finally, Glass Jacobson Investment Advisors llc grew its stake in Illinois Tool Works by 336.0% during the 4th quarter. Glass Jacobson Investment Advisors llc now owns 109 shares of the industrial products company's stock valued at $28,000 after purchasing an additional 84 shares during the last quarter. Institutional investors and hedge funds own 79.77% of the company's stock.

Insider Buying and Selling

In other Illinois Tool Works news, CFO Michael M. Larsen sold 41,472 shares of Illinois Tool Works stock in a transaction on Friday, March 7th. The shares were sold at an average price of $271.25, for a total value of $11,249,280.00. Following the transaction, the chief financial officer now directly owns 50,502 shares of the company's stock, valued at approximately $13,698,667.50. The trade was a 45.09% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Christopher A. O'herlihy sold 48,453 shares of the firm's stock in a transaction on Friday, March 7th. The stock was sold at an average price of $274.36, for a total value of $13,293,565.08. Following the completion of the sale, the chief executive officer now directly owns 55,113 shares of the company's stock, valued at $15,120,802.68. The trade was a 46.78% decrease in their position. The disclosure for this sale can be found here. 0.88% of the stock is currently owned by company insiders.

Illinois Tool Works Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, July 11th. Stockholders of record on Monday, June 30th will be issued a $1.50 dividend. The ex-dividend date of this dividend is Monday, June 30th. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.45%. Illinois Tool Works's dividend payout ratio is presently 52.77%.

About Illinois Tool Works

Illinois Tool Works Inc manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products.