Zacks Research Has Negative Forecast for ITW Q2 Earnings

Key Points

• Zacks Research slightly cut its Q2 2026 earnings estimate for Illinois Tool Works, now expecting $2.79 per share versus the prior $2.80.
• Illinois Tool Works recently beat Wall Street expectations in its latest quarter, reporting $2.66 EPS on $4.02 billion in revenue, and it raised its FY 2026 guidance to $11.10-$11.50 EPS.
• Analyst sentiment remains cautious overall: the stock has an average rating of "Reduce" and an average target price of $271.92, with multiple firms maintaining sell or underweight views.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Research analysts at Zacks Research dropped their Q2 2026 earnings estimates for shares of Illinois Tool Works in a research report issued on Friday, June 5th. Zacks Research analyst Team now anticipates that the industrial products company will post earnings of $2.79 per share for the quarter, down from their previous estimate of $2.80. 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' Q1 2027 earnings at $2.72 EPS, Q3 2027 earnings at $3.18 EPS, Q4 2027 earnings at $3.19 EPS and FY2028 earnings at $13.32 EPS.

Illinois Tool Works (NYSE:ITW - Get Free Report) last issued its quarterly earnings results on Thursday, April 30th. The industrial products company reported $2.66 EPS for the quarter, topping the consensus estimate of $2.57 by $0.09. The business had revenue of $4.02 billion for the quarter, compared to analysts' expectations 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 last year, the company posted $2.38 earnings per share. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS.

Other equities analysts also recently issued research reports about the stock. The Goldman Sachs Group reaffirmed a "sell" rating and issued a $254.00 price objective on shares of Illinois Tool Works in a report on Thursday, April 30th. Evercore decreased their price target on shares of Illinois Tool Works from $296.00 to $272.00 in a report on Monday, May 11th. Weiss Ratings downgraded shares of Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, May 26th. Wolfe Research increased their price objective on shares of Illinois Tool Works from $276.00 to $295.00 and gave the stock an "underperform" rating in a research note on Friday, February 27th. Finally, Wells Fargo & Company lifted their target price on Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a research note on Monday, May 4th. One equities research analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the stock. Based on data from MarketBeat, Illinois Tool Works currently has an average rating of "Reduce" and an average target price of $271.92.

Illinois Tool Works Price Performance

Shares of ITW opened at $252.48 on Monday. The company has a current ratio of 1.19, a quick ratio of 0.86 and a debt-to-equity ratio of 2.04. The firm has a market cap of $72.64 billion, a price-to-earnings ratio of 23.44, a PEG ratio of 4.34 and a beta of 1.01. Illinois Tool Works has a 52 week low of $238.82 and a 52 week high of $303.15. The stock has a 50 day moving average of $258.67 and a 200-day moving average of $262.61.

Illinois Tool Works Dividend Announcement

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

Insiders Place Their Bets

In other news, Director Jennifer F. Scanlon bought 806 shares of Illinois Tool Works stock in a transaction on Tuesday, June 2nd. The stock was purchased at an average cost of $247.99 per share, with a total value of $199,879.94. Following the purchase, the director directly owned 1,652 shares of the company's stock, valued at approximately $409,679.48. This trade represents a 95.27% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 0.83% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Illinois Tool Works

Several hedge funds and other institutional investors have recently made changes to their positions in ITW. Optiver Holding B.V. bought a new position in shares of Illinois Tool Works in the first quarter worth $153,000. Vestor Capital LLC raised its stake in shares of Illinois Tool Works by 2,538.3% during the first quarter. Vestor Capital LLC now owns 14,484 shares of the industrial products company's stock valued at $3,770,000 after purchasing an additional 13,935 shares in the last quarter. Groupe la Francaise lifted its holdings in Illinois Tool Works by 7.7% in the first quarter. Groupe la Francaise now owns 29,148 shares of the industrial products company's stock worth $7,587,000 after purchasing an additional 2,087 shares during the period. Western Wealth Management LLC lifted its holdings in Illinois Tool Works by 5.6% in the first quarter. Western Wealth Management LLC now owns 2,043 shares of the industrial products company's stock worth $532,000 after purchasing an additional 109 shares during the period. Finally, Paragon Private Wealth Management LLC grew its position in Illinois Tool Works by 3.8% in the 1st quarter. Paragon Private Wealth Management LLC now owns 5,574 shares of the industrial products company's stock valued at $1,451,000 after buying an additional 206 shares in the last quarter. 79.77% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.