Zacks Research Has Optimistic Outlook of ITW FY2027 Earnings

Key Points

• Zacks Research raised its FY2027 EPS estimate for Illinois Tool Works to $12.10 from $12.04, above the current consensus of $11.37, signaling a more optimistic long-term outlook.
• ITW beat quarterly expectations in its latest report, posting $2.66 EPS versus $2.57 expected and revenue of $4.02 billion, up 4.6% year over year.
• Analyst sentiment remains cautious overall: the stock has a consensus rating of “Reduce” with an average target price of $271.92, despite some firms recently adjusting their price targets and ratings.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Analysts at Zacks Research boosted their FY2027 EPS estimates for shares of Illinois Tool Works in a research report issued to clients and investors on Friday, June 5th. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $12.10 per share for the year, up from their previous forecast of $12.04. 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 2028 earnings at $3.02 EPS.

A number of other equities analysts have also weighed in on the stock. JPMorgan Chase & Co. cut their price objective 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. Wells Fargo & Company boosted their price objective on shares of Illinois Tool Works from $245.00 to $255.00 and gave the company an "underweight" rating in a research report on Monday, May 4th. The Goldman Sachs Group reissued a "sell" rating and issued a $254.00 price objective on shares of Illinois Tool Works in a research report on Thursday, April 30th. Weiss Ratings lowered shares of Illinois Tool Works from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Tuesday, May 26th. Finally, Citigroup boosted their price objective on shares of Illinois Tool Works from $284.00 to $287.00 and gave the company a "neutral" rating in a research report on Monday, May 4th. One equities research analyst has rated the stock with a Buy rating, seven have issued a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, Illinois Tool Works currently has a consensus rating of "Reduce" and an average target price of $271.92.

Illinois Tool Works Stock Performance

NYSE:ITW opened at $252.60 on Tuesday. The firm has a 50 day simple moving average of $258.50 and a 200-day simple moving average of $262.68. The company has a debt-to-equity ratio of 2.04, a current ratio of 1.19 and a quick ratio of 0.86. The firm has a market cap of $72.67 billion, a PE ratio of 23.45, a P/E/G ratio of 4.34 and a beta of 1.01. Illinois Tool Works has a 1-year low of $238.82 and a 1-year high of $303.15.

Illinois Tool Works (NYSE:ITW - Get Free Report) last released its quarterly earnings data 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 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 business's revenue for the quarter was up 4.6% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.38 EPS. Illinois Tool Works has set its FY 2026 guidance at 11.100-11.500 EPS.

Institutional Trading of Illinois Tool Works

A number of institutional investors and hedge funds have recently bought and sold shares of ITW. Cresta Advisors Ltd. acquired a new stake in Illinois Tool Works during the 4th quarter worth approximately $25,000. Motiv8 Investments LLC acquired a new stake in Illinois Tool Works during the 4th quarter worth approximately $27,000. Kemnay Advisory Services Inc. acquired a new stake in Illinois Tool Works during the 4th quarter worth approximately $27,000. Lodestone Wealth Management LLC acquired a new stake in Illinois Tool Works during the 4th quarter worth approximately $28,000. Finally, Beacon Financial Strategies CORP acquired a new stake in Illinois Tool Works during the 4th quarter worth approximately $29,000. Institutional investors and hedge funds own 79.77% of the company's stock.

Insider Buying and Selling at Illinois Tool Works

In related news, Director Jennifer F. Scanlon acquired 806 shares of the business's stock in a transaction dated Tuesday, June 2nd. The shares were acquired at an average cost of $247.99 per share, for a total transaction of $199,879.94. Following the acquisition, the director directly owned 1,652 shares in the company, valued at approximately $409,679.48. The trade was a 95.27% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at the SEC website. 0.83% of the stock is currently owned by insiders.

Illinois Tool Works Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Tuesday, June 30th will be issued a dividend of $1.61 per share. This represents a $6.44 annualized dividend and a dividend yield of 2.5%. The ex-dividend date is Tuesday, June 30th. Illinois Tool Works's dividend payout ratio is presently 59.80%.

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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