Zacks Research Has Negative Estimate for ITW Q2 Earnings

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Illinois Tool Works to $2.80 from $2.85, signaling a slightly softer near-term outlook. The firm’s broader revisions were mixed, with some future-year estimates nudged higher but several near-term periods trimmed.
• ITW recently beat Wall Street expectations in its latest quarterly results, reporting $2.66 EPS versus $2.57 expected and revenue of $4.02 billion versus $4.01 billion estimated. The company also raised FY2026 guidance to $11.10–$11.50 EPS.
• Analyst sentiment remains cautious overall, with the stock carrying a consensus rating of “Reduce” and a consensus target price of $271.92. Recent notes were mixed, including a Goldman Sachs sell rating and Wells Fargo’s lower-rated but slightly higher price target.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Investment analysts at Zacks Research lowered their Q2 2026 EPS estimates for Illinois Tool Works in a research note issued on Thursday, May 14th. Zacks Research analyst Team now expects that the industrial products company will post earnings of $2.80 per share for the quarter, down from their previous forecast of $2.85. The consensus estimate for Illinois Tool Works' current full-year earnings is $11.37 per share. Zacks Research also issued estimates for Illinois Tool Works' Q4 2026 earnings at $2.89 EPS, FY2026 earnings at $11.29 EPS, Q1 2027 earnings at $2.73 EPS, Q2 2027 earnings at $3.01 EPS, Q3 2027 earnings at $3.15 EPS, Q4 2027 earnings at $3.14 EPS, FY2027 earnings at $12.04 EPS, Q1 2028 earnings at $3.01 EPS and FY2028 earnings at $13.27 EPS.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its earnings results 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 company 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 19.32% and a return on equity of 97.36%. The firm's quarterly revenue was up 4.6% compared to the same quarter last year. During the same period in the previous year, the business posted $2.38 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS.

Other equities analysts have also issued research reports about the stock. The Goldman Sachs Group restated a "sell" rating and set a $254.00 target price on shares of Illinois Tool Works in a research report on Thursday, April 30th. Robert W. Baird set a $278.00 target price on shares of Illinois Tool Works in a research report on Wednesday, February 4th. Citigroup upped their target price on shares of Illinois Tool Works from $284.00 to $287.00 and gave the stock a "neutral" rating in a research report on Monday, May 4th. JPMorgan Chase & Co. dropped their target price on shares of Illinois Tool Works from $303.00 to $295.00 and set an "overweight" rating for the company in a research report on Friday, May 1st. Finally, Wells Fargo & Company upped their target price on shares of Illinois Tool Works from $245.00 to $255.00 and gave the stock an "underweight" rating in a research report on Monday, May 4th. Two research analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat, Illinois Tool Works has a consensus rating of "Reduce" and a consensus target price of $271.92.

Illinois Tool Works Stock Performance

ITW opened at $247.85 on Monday. The firm has a market cap of $71.31 billion, a P/E ratio of 23.01, a PEG ratio of 4.26 and a beta of 1.04. Illinois Tool Works has a 1-year low of $238.82 and a 1-year high of $303.15. The company has a 50 day simple moving average of $264.17 and a two-hundred day simple moving average of $262.01. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.19 and a quick ratio of 0.86.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in ITW. Cresta Advisors Ltd. purchased a new position in Illinois Tool Works during the 4th quarter valued at about $25,000. Motiv8 Investments LLC purchased a new position in Illinois Tool Works during the 4th quarter valued at about $27,000. Kemnay Advisory Services Inc. purchased a new position in Illinois Tool Works during the 4th quarter valued at about $27,000. Lodestone Wealth Management LLC purchased a new position in Illinois Tool Works during the 4th quarter valued at about $28,000. Finally, Beacon Financial Strategies CORP purchased a new position in Illinois Tool Works during the 4th quarter valued at about $29,000. Hedge funds and other institutional investors own 79.77% of the company's stock.

Illinois Tool Works Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be paid a $1.61 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $6.44 annualized dividend and a dividend yield of 2.6%. Illinois Tool Works's dividend payout ratio is currently 59.80%.

Key Headlines Impacting Illinois Tool Works

Here are the key news stories impacting Illinois Tool Works this week:

• Positive Sentiment: Wells Fargo lifted its price target on Illinois Tool Works to $255 from $245, suggesting improved demand trends in short-cycle markets, even though the firm kept an Underweight rating. Wells Fargo Sees Improving Demand Trends for Illinois Tool Works (ITW)
• Positive Sentiment: Zacks Research nudged up its FY2026 EPS estimate for Illinois Tool Works to $11.29 from $11.21, and also increased its FY2028 estimate to $13.27 from $13.21, indicating a slightly better long-term earnings outlook.
• Neutral Sentiment: Zacks Research made small upward revisions to some future-quarter estimates, including Q3 2027 and Q4 2027, while leaving the broader full-year outlook mostly unchanged.
• Negative Sentiment: The same Zacks notes also trimmed several near-term estimates, including Q2 2026, Q4 2026, Q1 2027, Q2 2027 and FY2027 EPS, which may be weighing on sentiment around near-term growth.

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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