Zacks Research Has Bullish Forecast for ITW Q3 Earnings

Key Points

• Zacks Research revised its Q3 2026 earnings estimate for Illinois Tool Works to $2.92 per share, slightly up from the previous $2.91 estimate, with an anticipated full-year earnings of $10.39 per share.
• The company announced an increase in its quarterly dividend to $1.61 per share, up from $1.50, with an annualized dividend yield of 2.5%.
• Illinois Tool Works currently holds a consensus rating of "Reduce" among analysts, with a price target of $260.67, and has seen mixed ratings from various investment firms.

Illinois Tool Works Inc. (NYSE:ITW - Free Report) - Research analysts at Zacks Research raised their Q3 2026 earnings per share (EPS) estimates for Illinois Tool Works in a report issued on Monday, September 1st. Zacks Research analyst Team now forecasts that the industrial products company will post earnings of $2.92 per share for the quarter, up from their prior estimate of $2.91. 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 2026 earnings at $2.90 EPS, Q2 2027 earnings at $3.04 EPS and FY2027 earnings at $12.04 EPS.

Illinois Tool Works (NYSE:ITW - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The industrial products company reported $2.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.56 by $0.02. Illinois Tool Works had a return on equity of 90.89% and a net margin of 21.31%.The company had revenue of $4.05 billion during the quarter, compared to the consensus estimate of $4.01 billion. During the same period in the previous year, the company posted $2.54 earnings per share. Illinois Tool Works's revenue for the quarter was up .6% on a year-over-year basis. Illinois Tool Works has set its FY 2025 guidance at 10.350-10.550 EPS.

A number of other research analysts also recently issued reports on ITW. Wells Fargo & Company boosted their price target on Illinois Tool Works from $235.00 to $250.00 and gave the company an "underweight" rating in a report on Thursday, July 31st. Citigroup upped their target price on Illinois Tool Works from $254.00 to $265.00 and gave the stock a "neutral" rating in a research note on Monday, July 14th. Evercore ISI set a $265.00 target price on Illinois Tool Works and gave the stock an "underperform" rating in a research note on Tuesday, August 19th. Barclays upped their target price on Illinois Tool Works from $240.00 to $243.00 and gave the stock an "equal weight" rating in a research note on Monday, August 4th. Finally, UBS Group upped their target price on Illinois Tool Works from $243.00 to $255.00 and gave the stock a "neutral" rating in a research note on Thursday, July 31st. One research analyst has rated the stock with a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Illinois Tool Works currently has a consensus rating of "Reduce" and an average target price of $260.67.

Illinois Tool Works Stock Performance

NYSE:ITW traded up $0.38 during trading hours on Thursday, reaching $266.05. The company had a trading volume of 583,082 shares, compared to its average volume of 829,771. Illinois Tool Works has a 1-year low of $214.66 and a 1-year high of $279.13. The firm has a market cap of $77.55 billion, a PE ratio of 23.32, a price-to-earnings-growth ratio of 5.74 and a beta of 1.10. The business's 50 day moving average price is $259.77 and its 200-day moving average price is $250.78. The company has a debt-to-equity ratio of 2.40, a current ratio of 1.59 and a quick ratio of 1.15.

Illinois Tool Works Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Tuesday, September 30th will be paid a $1.61 dividend. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $6.44 annualized dividend and a yield of 2.4%. This is an increase from Illinois Tool Works's previous quarterly dividend of $1.50. Illinois Tool Works's dividend payout ratio is currently 56.44%.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Frazier Financial Advisors LLC purchased a new stake in Illinois Tool Works in the 2nd quarter valued at $25,000. Ameriflex Group Inc. purchased a new stake in Illinois Tool Works in the 4th quarter valued at $26,000. von Borstel & Associates Inc. purchased a new stake in Illinois Tool Works in the 1st quarter valued at $26,000. SOA Wealth Advisors LLC. grew its holdings in Illinois Tool Works by 90.9% in the 2nd quarter. SOA Wealth Advisors LLC. now owns 105 shares of the industrial products company's stock valued at $26,000 after buying an additional 50 shares in the last quarter. Finally, Saudi Central Bank purchased a new stake in Illinois Tool Works in the 1st quarter valued at $29,000. 79.77% of the stock is owned by institutional investors and hedge funds.

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.