Illinois Tool Works (NYSE:ITW) Posts Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Illinois Tool Works (NYSE:ITW) released its quarterly earnings data on Tuesday. The industrial products company reported $2.72 EPS for the quarter, beating analysts’ consensus estimates of $2.69 by $0.03, Briefing.com reports. The firm had revenue of $4.09 billion for the quarter, compared to analysts’ expectations of $4.07 billion. Illinois Tool Works had a return on equity of 93.26% and a net margin of 19.05%.The firm’s quarterly revenue was up 4.1% on a year-over-year basis. During the same period in the prior year, the firm posted $2.54 earnings per share. Illinois Tool Works updated its FY 2026 guidance to 11.000-11.400 EPS.

Here are the key takeaways from Illinois Tool Works’ conference call:

• ITW finished Q4 with a solid operational close—total revenue grew ~4.1% (organic 1.3%), GAAP EPS rose 7% to $2.72, and company-wide operating margins reached record levels with enterprise initiatives contributing roughly 140 basis points.
• Management emphasized progress on Customer-Backed Innovation (CBI), which contributed 2.4% of 2025 revenue, patent filings increased 9% in 2025 (after +18% in 2024), and the company is tracking toward a 3%+ CBI goal by 2030.
• 2026 guidance targets organic growth of 1–3% (total revenue 2–4%), a GAAP EPS range of $11.00–$11.40 (midpoint $11.20, +7%), ~100 bps of operating margin expansion, free cash flow conversion >100%, and planned share repurchases of about $1.5 billion.
• Some end‑market and regional weakness remains—Europe revenue declined ~2% in Q4 and Construction Products posted a 4% organic decline, with residential renovation notably soft.
• Margin gains are largely driven by enterprise initiatives and higher incremental margins (mid–high 40s) but will be partly offset by wage/benefit inflation and continued investments; M&A is described as opportunistic rather than a primary near‑term driver.

Illinois Tool Works Stock Up 5.3%

NYSE:ITW traded up $13.96 during midday trading on Tuesday, reaching $278.17. The company had a trading volume of 3,128,831 shares, compared to its average volume of 1,463,718. The stock’s fifty day simple moving average is $253.76 and its 200-day simple moving average is $254.97. The company has a current ratio of 1.53, a quick ratio of 1.11 and a debt-to-equity ratio of 2.39. Illinois Tool Works has a 12-month low of $214.66 and a 12-month high of $282.88. The firm has a market capitalization of $80.70 billion, a price-to-earnings ratio of 26.98, a PEG ratio of 13.99 and a beta of 1.15.

Insider Activity

In other news, Director Pamela B. Strobel sold 1,521 shares of the business’s stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $245.25, for a total transaction of $373,025.25. Following the completion of the transaction, the director directly owned 39,249 shares of the company’s stock, valued at approximately $9,625,817.25. The trade was a 3.73% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 0.88% of the company’s stock.

Institutional Trading of Illinois Tool Works

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Osterweis Capital Management Inc. boosted its position 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 purchasing an additional 312 shares during the period. Front Street Capital Management Inc. acquired a new position in shares of Illinois Tool Works in the second quarter valued at approximately $124,000. MUFG Securities EMEA plc purchased a new stake in shares of Illinois Tool Works during the second quarter worth approximately $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 purchased a new position in Illinois Tool Works during the third quarter worth about $219,000. Institutional investors and hedge funds own 79.77% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on ITW. Bank of America upgraded Illinois Tool Works from an “underperform” rating to a “neutral” rating and increased their price target for the stock from $220.00 to $255.00 in a report on Tuesday, November 18th. Wolfe Research increased their target price on shares of Illinois Tool Works from $264.00 to $278.00 and gave the stock an “underperform” rating in a research note on Thursday, January 15th. Weiss Ratings reissued a “buy (b-)” rating on shares of Illinois Tool Works in a research note on Wednesday, January 28th. Evercore ISI lowered their price objective on shares of Illinois Tool Works from $261.00 to $253.00 and set an “underperform” rating for the company in a research report on Monday, November 17th. Finally, Truist Financial cut their target price on Illinois Tool Works from $298.00 to $275.00 and set a “hold” rating on the stock in a research report on Monday, October 27th. One investment analyst has rated the stock with a Buy rating, seven have given a Hold rating and five have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Reduce” and a consensus target price of $258.25.

More Illinois Tool Works News

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

• Positive Sentiment: Q4 beat and stronger EPS: ITW reported Q4 GAAP EPS of $2.72 vs consensus ~ $2.68 and FY‑2025 GAAP EPS of $10.49, beating prior guidance—evidence of underlying profitability that helped lift the stock. Illinois Tool Surpasses Q4 Earnings Estimates, Issues 2026 View
• Positive Sentiment: Margin expansion from enterprise initiatives: Operating margin rose to ~26.5% in Q4 with enterprise initiatives contributing ~140 bps — management expects another ~100 bps of margin improvement in 2026, supporting EPS leverage. ITW Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Share‑price momentum: Market reaction pushed ITW to a 52‑week high after the earnings/guide beat and margin commentary. Momentum can attract further buyer interest. Illinois Tool Works Stock Smashes 52-Week High After Earnings Beat
• Neutral Sentiment: 2026 guidance: ITW set FY‑2026 EPS guidance of $11.00–$11.40 and revenue guidance roughly $16.4–$16.7B (2–4% growth); the range encompasses but slightly trims the consensus midpoint—guidance is constructive but not overly aggressive. ITW Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Earnings call / detail access: Full Q4 earnings call transcript and slide deck are available for investors to dig into segment trends, buyback cadence and capital allocation plans. Illinois Tool Works Inc. (ITW) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Top‑line growth is modest: Full‑year revenue rose only ~0.9% in 2025 and Q4 revenue growth totaled ~4.1% year‑over‑year — slower demand momentum could cap upside if end‑market activity softens. ITW Reports Fourth Quarter and Full Year 2025 Results
• Negative Sentiment: Macro/industry risk and leverage: Commentary and coverage note lingering industrial headwinds and cyclicality; elevated leverage and a relatively high valuation multiple could make the shares sensitive to any downside revision. Illinois Tool Works Earnings Up Next Amid Industrial Headwinds

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.