Illinois Tool Works (NYSE:ITW) Updates FY 2026 Earnings Guidance

Illinois Tool Works (NYSE:ITW) updated its FY 2026 earnings guidance on Tuesday. The company provided EPS guidance of 11.000-11.400 for the period, compared to the consensus EPS estimate of 11.260. The company issued revenue guidance of $16.4 billion-$16.7 billion, compared to the consensus revenue estimate of $16.5 billion.

Illinois Tool Works Price Performance

Shares of NYSE:ITW traded up $15.47 on Tuesday, reaching $279.68. The company’s stock had a trading volume of 880,628 shares, compared to its average volume of 1,366,849. The company has a 50-day simple moving average of $253.76 and a 200 day simple moving average of $254.97. The company has a debt-to-equity ratio of 2.39, a quick ratio of 1.11 and a current ratio of 1.53. The company has a market cap of $81.13 billion, a P/E ratio of 27.05, a PEG ratio of 13.99 and a beta of 1.15. Illinois Tool Works has a 52-week low of $214.66 and a 52-week high of $282.88.

Illinois Tool Works (NYSE:ITW) last released its quarterly earnings results on Tuesday, February 3rd. The industrial products company reported $2.72 EPS for the quarter, topping the consensus estimate of $2.68 by $0.04. Illinois Tool Works had a return on equity of 93.26% and a net margin of 19.05%.The company had revenue of $4.09 billion during the quarter, compared to analyst estimates of $4.07 billion. During the same quarter last year, the business posted $2.54 earnings per share. The firm’s revenue was up 4.1% on a year-over-year basis. Illinois Tool Works has set its FY 2026 guidance at 11.000-11.400 EPS. As a group, equities research analysts anticipate that Illinois Tool Works will post 10.39 EPS for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ITW. Wolfe Research raised their price target on Illinois Tool Works from $264.00 to $278.00 and gave the stock an “underperform” rating in a research report on Thursday, January 15th. Bank of America raised shares of Illinois Tool Works from an “underperform” rating to a “neutral” rating and lifted their price target for the stock from $220.00 to $255.00 in a research note on Tuesday, November 18th. Wells Fargo & Company increased their price objective on shares of Illinois Tool Works from $245.00 to $250.00 and gave the stock an “underweight” rating in a research report on Wednesday, January 7th. The Goldman Sachs Group downgraded shares of Illinois Tool Works from a “neutral” rating to a “sell” rating and decreased their price objective for the stock from $258.00 to $230.00 in a research note on Tuesday, December 16th. Finally, Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Illinois Tool Works in a research note on Wednesday, January 28th. One analyst has rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average price target of $258.25.

Insider Activity at Illinois Tool Works

In related news, Director Pamela B. Strobel sold 1,521 shares of Illinois Tool Works stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $245.25, for a total value of $373,025.25. Following the completion of the sale, the director directly owned 39,249 shares in the company, valued at $9,625,817.25. The trade was a 3.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 0.88% of the company’s stock.

Key Illinois Tool Works News

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

• Positive Sentiment: Q4 beat and solid margins — ITW reported GAAP EPS of $2.72 vs. $2.68 consensus, revenue +4.1% YoY and an operating margin of 26.5%; management said enterprise initiatives materially helped margins. This underpins today’s upside reaction. Illinois Tool Works beats Q4 estimates, forecasts 7% EPS growth for 2026
• Positive Sentiment: FY2026 guidance implies EPS growth — ITW gave EPS guidance of $11.00–$11.40 (management says ~7% growth at the mid‑point) and revenue guidance roughly in the $16.4–$16.7B range; the outlook signals continued margin expansion from efficiency programs. ITW Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Quality of earnings — management highlighted customer‑back innovation contributing to growth and a high net margin/ROE profile (net margin ~19%, ROE cited in releases), supporting cash generation and the company’s ability to fund dividends/returns. Illinois Tool Works tops quarterly estimates amid better operating margins
• Neutral Sentiment: Results mostly in line with expectations — the EPS beat was small (+$0.04) and FY guidance sits close to consensus, so upside may be limited unless management can accelerate organic growth or exceed margin targets. Illinois Tool Works Posts Higher 4Q Profit, Revenue
• Neutral Sentiment: Investor resources released — the company published its press release and slide deck for the quarter, useful for confirming segment detail and guidance assumptions. View Press Release / Slide Deck
• Negative Sentiment: Macro and industrial headwinds remain — commentary ahead of results and some analyst notes highlight exposure to cyclical industrial demand, which could cap upside if end‑market demand softens. Illinois Tool Works Earnings Up Next Amid Industrial Headwinds

Hedge Funds Weigh In On Illinois Tool Works

Large investors have recently added to or reduced their stakes in the company. Osterweis Capital Management Inc. boosted its holdings in shares of Illinois Tool Works by 6,240.0% in the 2nd quarter. Osterweis Capital Management Inc. now owns 317 shares of the industrial products company’s stock valued at $78,000 after buying an additional 312 shares in the last quarter. Front Street Capital Management Inc. purchased a new stake in shares of Illinois Tool Works during the 2nd quarter valued at $124,000. MUFG Securities EMEA plc acquired a new stake in shares of Illinois Tool Works in the 2nd quarter worth $195,000. Invenio Wealth Partners LLC purchased a new position in Illinois Tool Works during the 3rd quarter worth $201,000. Finally, Seven Mile Advisory acquired a new position in Illinois Tool Works during the 3rd quarter valued at about $219,000. 79.77% of the stock is currently owned by institutional investors.

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.