Q3 EPS Forecast for Illinois Tool Works Increased by Analyst

Key Points

• Zacks Research has raised the Q3 2025 earnings per share (EPS) forecast for Illinois Tool Works to $2.68, up from a previous estimate of $2.63.
• The company reported Q2 earnings of $2.58 EPS, surpassing analyst expectations of $2.56 EPS, with revenues of $4.05 billion.
• Illinois Tool Works recently declared a quarterly dividend of $1.61, up from the previous $1.50, reflecting a 2.4% yield for investors.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Research analysts at Zacks Research boosted their Q3 2025 earnings per share estimates for shares of Illinois Tool Works in a research report issued to clients and investors on Wednesday, August 13th. Zacks Research analyst A. Bhattacharjee now expects that the industrial products company will post earnings per share of $2.68 for the quarter, up from their prior estimate of $2.63. 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' Q4 2025 earnings at $2.73 EPS, FY2025 earnings at $10.37 EPS, Q1 2026 earnings at $2.52 EPS, Q2 2026 earnings at $2.82 EPS, Q3 2026 earnings at $2.91 EPS, Q4 2026 earnings at $2.89 EPS and Q2 2027 earnings at $3.01 EPS.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its earnings results on Wednesday, July 30th. The industrial products company reported $2.58 EPS for the quarter, beating analysts' consensus estimates of $2.56 by $0.02. The company had revenue of $4.05 billion during the quarter, compared to the consensus estimate of $4.01 billion. Illinois Tool Works had a return on equity of 90.89% and a net margin of 21.31%. Illinois Tool Works's quarterly revenue was up .6% compared to the same quarter last year. During the same quarter last year, the company earned $2.54 earnings per share.

Several other brokerages have also weighed in on ITW. Wells Fargo & Company upped their target price on shares of Illinois Tool Works from $235.00 to $250.00 and gave the stock an "underweight" rating in a research report on Thursday, July 31st. Robert W. Baird upped their price target on Illinois Tool Works from $239.00 to $244.00 and gave the stock a "neutral" rating in a report on Thursday, May 1st. Barclays lifted their price objective on Illinois Tool Works from $240.00 to $243.00 and gave the stock an "equal weight" rating in a report on Monday, August 4th. Stifel Nicolaus boosted their target price on Illinois Tool Works from $255.00 to $261.00 and gave the stock a "hold" rating in a research report on Thursday, July 31st. Finally, Evercore ISI dropped their price target on Illinois Tool Works from $252.00 to $249.00 and set an "underperform" rating for the company in a research report on Monday, May 19th. Three analysts have rated the stock with a sell rating, nine have issued a hold rating and one has issued a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $259.33.

Illinois Tool Works Price Performance

Shares of NYSE ITW traded down $4.06 during midday trading on Thursday, hitting $258.43. The company had a trading volume of 1,115,058 shares, compared to its average volume of 1,044,403. The firm has a market capitalization of $75.33 billion, a price-to-earnings ratio of 22.65, a price-to-earnings-growth ratio of 5.58 and a beta of 1.09. Illinois Tool Works has a twelve month low of $214.66 and a twelve month high of $279.13. The business has a 50-day simple moving average of $253.84 and a two-hundred day simple moving average of $250.10. The company has a quick ratio of 1.15, a current ratio of 1.59 and a debt-to-equity ratio of 2.40.

Illinois Tool Works Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Shareholders of record on Tuesday, September 30th will be issued a $1.61 dividend. This is a positive change from Illinois Tool Works's previous quarterly dividend of $1.50. The ex-dividend date is Tuesday, September 30th. This represents a $6.44 dividend on an annualized basis and a yield of 2.5%. Illinois Tool Works's payout ratio is currently 52.59%.

Insider Activity

In other news, Director David Byron Smith, Jr. purchased 872 shares of the stock in a transaction dated Monday, June 2nd. The stock was acquired at an average cost of $241.16 per share, for a total transaction of $210,291.52. Following the completion of the acquisition, the director directly owned 122,884 shares in the company, valued at $29,634,705.44. This represents a 0.71% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 0.88% of the stock is owned by corporate insiders.

Institutional Trading of Illinois Tool Works

Hedge funds have recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of Illinois Tool Works during the second quarter worth $821,888,000. GAMMA Investing LLC lifted its position in Illinois Tool Works by 26,372.8% during the first quarter. GAMMA Investing LLC now owns 2,065,675 shares of the industrial products company's stock worth $5,123,080,000 after buying an additional 2,057,872 shares during the period. Auto Owners Insurance Co boosted its stake in Illinois Tool Works by 55,978.4% in the 1st quarter. Auto Owners Insurance Co now owns 1,430,000 shares of the industrial products company's stock worth $354,654,000 after buying an additional 1,427,450 shares during the last quarter. Nuveen LLC acquired a new position in shares of Illinois Tool Works during the 1st quarter valued at about $293,928,000. Finally, Northern Trust Corp increased its stake in shares of Illinois Tool Works by 3.9% during the 4th quarter. Northern Trust Corp now owns 13,667,653 shares of the industrial products company's stock valued at $3,465,570,000 after acquiring an additional 508,188 shares during the last quarter. Institutional investors and hedge funds own 79.77% of the company's stock.

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.